Nigeria is emerging as one of sub-Saharan Africa’s main centres of artificial intelligence (AI) activity, alongside Kenya and South Africa, according to the World Bank’s October 2026 Africa Economic Update.
The report, titled Building AI Readiness, identifies the three countries as key locations for AI-related innovation, research and investment across the region. It also highlights the potential for artificial intelligence to improve productivity, expand economic opportunities and strengthen public service delivery.
The findings come as African economies explore how AI can support development, improve business operations and create opportunities for a rapidly growing workforce.
However, the World Bank cautions that the benefits will depend on countries’ ability to address persistent gaps in electricity supply, internet connectivity, computing infrastructure, digital skills and data governance.
Nigeria’s growing role in Africa’s AI landscape
Nigeria’s inclusion among the region’s leading AI activity centres reflects the concentration of AI-related innovation and technology development in a small number of sub-Saharan African economies.
According to the World Bank, most countries in the region remain at an early stage of AI adoption. Rather than developing advanced AI systems from scratch, many businesses and institutions are adopting existing technologies and adapting them to local needs.
For Nigeria, this creates opportunities to apply AI across sectors such as agriculture, education, healthcare, financial services, logistics and public administration.
Practical applications could help businesses improve efficiency, support farmers with information, expand access to educational resources and make selected public services more responsive.
The report emphasises that Africa’s most immediate opportunity lies in adopting affordable, locally relevant AI applications rather than competing directly with major global economies in developing frontier AI systems.
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AI adoption presents opportunities for Nigerian businesses
Evidence cited in the report points to growing AI use among businesses, although adoption levels vary between countries and the sophistication of applications remains uneven.
Among surveyed firms with at least 20 employees in Nigeria and Kenya, 44 per cent reported using AI technologies. The comparable figure for surveyed firms in the United States was 61 per cent.
The 44 per cent figure covers the combined Nigerian and Kenyan survey findings; it should not be interpreted as Nigeria’s standalone adoption rate.
The figures indicate that businesses in these African markets are engaging with AI, while also highlighting room for wider adoption and more advanced applications.
For Nigerian businesses, AI tools could support customer service, data analysis, administrative tasks and selected operational processes. Their effectiveness, however, will depend on access to suitable technology, reliable infrastructure and workers with the skills to use it effectively.
Infrastructure and skills remain major challenges
Despite the opportunities, the World Bank warns that several constraints could prevent Nigeria and other African countries from fully benefiting from AI.
Unreliable electricity, expensive or limited internet access, insufficient computing capacity and shortages of relevant digital skills remain important barriers.
These challenges can make it difficult for smaller businesses, schools, public institutions and households to access and use AI tools consistently.
The report therefore calls for investment in the foundations of an AI-ready economy, including dependable power, affordable connectivity, digital education, quality data and computing infrastructure.
It also highlights the importance of effective institutions, responsible governance and regional cooperation in expanding AI adoption.
Without progress in these areas, the benefits of AI could remain concentrated among businesses and individuals who already have access to digital resources, leaving poorer households and underserved communities at risk of exclusion.
World Bank highlights AI’s potential for jobs and productivity
The World Bank sees AI as a potential contributor to economic growth, improved services and job creation across sub-Saharan Africa.
By helping workers perform certain tasks more efficiently and enabling businesses to develop new products and services, AI could support productivity gains across different industries.
However, these outcomes are not guaranteed. Realising them will require investment, appropriate policies and efforts to ensure that workers can acquire the skills needed in an increasingly digital economy.
The report also points to regional cooperation as a way to expand access to AI-related resources and solutions. Initiatives linked to the African Union’s Continental AI Strategy and the African Continental Free Trade Area could help countries strengthen their capacity and scale applications across markets.
For Nigeria, the challenge is to translate its position as a major centre of AI activity into broader economic benefits, including opportunities for businesses, workers and communities.
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Turning AI potential into economic gains
The World Bank’s assessment places Nigeria within an emerging regional AI landscape, but it does not suggest that the country has overcome the barriers to widespread adoption.
Instead, the findings underline the importance of building the infrastructure, skills and institutional capacity required to make AI more accessible and useful.
For Nigeria to benefit more widely from the technology, progress will depend not only on innovation and business adoption but also on whether reliable digital services and relevant skills reach smaller enterprises and underserved communities.
The report’s central message is that AI could help African economies improve productivity and expand opportunities, but countries must first strengthen the foundations needed to use the technology effectively.
Nigeria’s growing role in the region’s AI activity offers an opportunity. Turning that position into lasting economic benefits will depend on how effectively the country addresses these challenges.
Senior AI Writer
Bio: Okikiola is a writer and AI enthusiast with a background in Office Technology and Management from the Federal Polytechnic Offa. She went further to study an MSc in International Business at De Montfort University (DMU). With extensive work experience across administrative and business roles, she now focuses on exploring how artificial intelligence can transform work, innovation, and everyday life.