Funding gap threaten Nigeria’s AI progress despite strong policy implementation
National Artificial Intelligence Strategy (NAIS) shows impressive implementation including multilingual AI models and scaling hubs but falls short when it comes to committed financing.
According to the State of AI Policy in Africa 2025 report, Nigeria demonstrates strong participation and implementation but lacks dedicated funding and statutory backing.
“Without robust domestic financial backing, the country risks losing ground even as it leads the region,” it stated.
While Nigeria’s AI initiatives benefit from strong external support, the lack of a dedicated national budget is a major vulnerability.
In 2024, international organisations and tech firms collectively provided around $3.5 million to fund initial AI efforts.
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Major infrastructure investments have also come into play: for example, a $120 million data centre from Rack Centre and a $240 million ‘hyperscale’ facility by OADC.
On the deployment side, Nigeria launched the open-source multilingual model ‘N-ATLAS,’ which supports Yoruba, Hausa and Igbo, and established an AI Scaling Hub with the backing of the Bill & Melinda Gates Foundation covering sectors like health, education and agriculture.
Across West Africa, budgeting for AI remains largely unresolved. Only Senegal has a fully costed national AI strategy (at around $46 million for research and training).
Nigeria and Ghana lead in terms of actual deployments and international partnerships, but both nations remain vulnerable without sustainable funding and legislative frameworks.
The report outlines several key areas for improvement which includes passing enforceable AI laws (not just high-level principles), ensuring transparency in algorithms, and training judicial and regulatory personnel.
Invest in talent, local datasets, infrastructure and regional collaboration.
The report also outlined the need to create dedicated, multi-year budgets for AI, encourage public-private partnerships, establish funding councils, and link procurement to local-content rules.
It also noted the need to harmonise data standards across regions, support shared infrastructure, protect IP rights, and maintain consistent political leadership.
