By Chinenye Anuforo [email protected]
Global investment in Artificial Intelligence (AI) is poised to reach a staggering $632 billion by 2028, according to the International Data Corporation (IDC). The surge accentuates AI’s transformative impact across various sectors, with businesses worldwide increasingly integrating AI to drive innovation, streamline operations and enhance customer experiences. In the midst of the global trend, Nigeria’s AI ecosystem is also gaining momentum, fueled by a dynamic tech environment, growing government support and the recognition of AI’s potential to tackle the country’s unique social, security and economic challenges.
Although Nigeria’s current AI investment remains modest compared to global powerhouses, industry experts forecast significant growth in the coming years. The nation’s rapidly expanding tech sector, often referred to as the “Silicon Savannah,” is home to a thriving community of startups and tech companies that are pioneering AI-driven solutions. These innovations are not only transforming local industries but are also attracting substantial interest from both domestic and international investors eager to capitalize on Nigeria’s AI potential.
The National Information Technology Development Agency (NITDA) has been a key player in promoting AI development in Nigeria.
Kashifu Abdullahi, NITDA’s Director General, emphasised the strategic importance of AI, stating, “AI presents a unique opportunity for Nigeria to address critical societal and economic challenges. Our focus is on fostering an environment where AI innovation can flourish, driving sustainable growth and development.”
Globally, the transformative power of AI is reshaping industries. Organisations are leveraging AI to enhance employee productivity, improve customer engagement, and optimize business processes.
The Group Vice President and General Manager of AI and Data Research at IDC, Ritu Jyoti,
highlighted consistent revolution evolution, saying, “As AI technologies become more sophisticated and accessible, we expect to see a rapid increase in adoption across industries, driving significant advancements in efficiency and innovation.”
While generative AI (GenAI) has captured much of the spotlight recently, IDC predicts that investments in broader AI applications; such as machine learning, deep learning, and natural language processing, will continue to dominate the market. However, GenAI is set to experience rapid growth, with a projected five-year compound annual growth rate (CAGR) of 59.2 percent, reflecting its expanding role in the AI landscape.
Nigeria’s burgeoning tech ecosystem is a critical driver of the AI investment wave. The country is home to a growing number of startups and tech companies that are leveraging AI to create innovative solutions for local challenges. This vibrant ecosystem is not only fostering technological innovation but is also drawing significant interest from investors who see AI as a key to unlocking Nigeria’s economic potential.
For analysts, AI’s impact on Nigeria’s economy could be profound. From enhancing agricultural productivity to revolutionising financial services, AI holds the potential to transform key sectors.
“AI can revolutionise Nigeria’s agriculture sector, which is a cornerstone of our economy,” said Oyindamola Soyinka, a leading data scientist.
He continued: “By harnessing AI for precision agriculture, we can improve resource management, increase crop yields, and ensure a more secure food supply.”
In the financial sector, AI is seen as a powerful tool for enhancing financial inclusion. Jide Awe, CEO of Jidaw Systems Limited, noted, “AI has the potential to bridge the financial inclusion gap in Nigeria, enabling more efficient loan processing and empowering small businesses and micro-entrepreneurs.
This could have a significant impact on the economy by bringing more people into the financial system.”
The potential applications of AI extend far beyond agriculture and finance. “AI can also drive innovation in manufacturing, optimize production processes, and predict equipment failures,” said Dr. Obi Osondu, a data scientist and AI consultant. “In healthcare, AI-powered diagnostics can enable faster and more accurate diagnoses, while AI-driven logistics can streamline supply chains and transportation networks, enhancing overall efficiency.”
According to IDC, spending on generative AI is expected to reach $202 billion by 2028, accounting for 32 percent of total AI spending. The software sector will be the largest beneficiary, with more than half of the AI market’s spending dedicated to software solutions. IDC projects that two-thirds of all software spending will go towards AI-enabled applications and platforms, with the remainder allocated to AI application development and deployment, as well as AI system infrastructure software.
The financial services industry is expected to lead the way in AI adoption, with banking institutions heavily investing in AI to enhance fraud detection, risk management, and customer service. “Banking will be the primary driver of AI spending in the financial services sector, which is expected to account for over 20 percent of all AI investments,” IDC reported. “Following closely are the software, information services, and retail sectors, which together will contribute roughly 45 percent of all AI spending over the next five years.”
While AI presents enormous opportunities, there are challenges that need to be addressed, particularly in ensuring responsible AI development and mitigating potential biases in AI algorithms. Jide Awe emphasised the importance of a balanced approach, saying, “To fully harness the power of AI, we must prioritize ethical AI development and address any biases that may arise. This requires ongoing government investment in AI research and development, as well as strong public-private partnerships to foster an inclusive and sustainable AI ecosystem.”
As global AI investment continues to grow, Nigeria is poised to play a significant role in this technological revolution. With strategic investments, a focus on responsible AI development, and a thriving tech ecosystem, Nigeria has the potential to become a leader in AI innovation, driving economic growth and positioning itself as a key player on the global stage.
ICT’s contribution to real GDP hits 19.78% – Report
The recent statistics from the National Bureau of Statistics (NBS) has shown that the Information and Communications Technology (ICT) sector played a pivotal role in boosting Nigeria’s economy in the second quarter of 2024.
“The sector’s contribution to the real Gross Domestic Product (GDP) reached a commendable 19.78 per cent, marginally surpassing the 19.54 per cent recorded in the same period last year,” said the NBS in its Q2 2024 GDP report.
Quarter-on-quarter, the ICT sector also demonstrated growth, contributing 17.89 per cent to the real GDP in Q1 2024.
“The sector encompasses telecommunications, publishing, motion pictures, sound recording, and broadcasting,” explained the NBS.
In Q2 2024, the ICT sector experienced a year-on-year growth rate of 4.44 per cent, primarily driven by the telecommunications sub-sector, which contributed 16.36 per cent to the GDP.
The telecommunications industry emerged as the third-largest contributor to the real GDP in Q2 2024, following crop production and trade industries.
“Dominated by leading mobile network operators like MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs), the telecom industry is significantly impacting various sectors of the economy,” noted the NBS.
Broadcasting, the closest sub-sector in terms of contribution, added 2.54 per cet to the GDP.
“In nominal terms, the ICT sector contributed 14.19 per cent to the total nominal GDP in Q2 2024, slightly lower than the 14.83 per cent recorded in the same quarter of 2023 but higher than the 13.12 per cent of the previous quarter,” the NBS revealed.
The sector’s nominal growth rate stood at 11.86 per cent year-on-year, a significant decrease from the 41.67 per cent recorded in Q2 2023.
Expert seeks revival of indigenous African communication, media systems
A distinguished Afrocentric communication and media scholar from the University of Lagos, Dr. Unwana Samuel Akpan, has called for a global reassessment of communication paradigms to bring Africa’s rich indigenous communication systems to the forefront.
In a recent interview with Daily Sun, the scholar emphasised the crucial role the traditional systems once played in African societies, acting as the foundation for governance, cultural preservation, and community unity.
“Indigenous African Communication and Media Systems are not just relics of the past; they are the threads that wove together the fabric of African communities,” Akpan explained.
Continuing, he said: “These systems were historically used to convey information, share stories, and pass down cultural knowledge, deeply embedded in the local traditions and distinct from the Western communication models. Unlike the individualistic approach of the West, African systems emphasised community, oral traditions, and a holistic view of life.”
Dr. Akpan, who has authored numerous books and articles in prestigious international academic journals, expressed concern over what he termed “epistemicide”; the systematic erasure of indigenous knowledge systems in favor of Western frameworks. This epistemicide, he argued, has led to a skewed perception of African cultures, eroding the understanding of the continent’s rich heritage.
He highlighted the diversity and adaptability of the communication systems across various African regions, from West Africa’s griot traditions to the communal storytelling practices of East Africa and the symbolic use of drums in Southern Africa. “These systems were not monolithic; they were as diverse as the cultures they served, each uniquely suited to its environment and community needs,” he said.
However, in the face of globalisation and the rapid spread of digital technology, these traditional systems are at risk of further marginalisation.
To counter this, Dr. Akpan proposed a comprehensive strategy to preserve and promote indigenous communication practices. This strategy includes documenting these systems, integrating them into educational curricula, and responsibly leveraging modern technologies to keep them alive.
“Imagine the possibilities if we could merge these ancient systems with today’s digital platforms, mobile applications, and even virtual reality,” Akpan suggested. “By doing so, we could not only preserve these traditions but also make them relevant to younger generations, blending the old with the new to create a dynamic form of communication that honors our past while embracing the future.”
He also urged policymakers to prioritise cultural preservation and invest in initiatives that support the revival of indigenous communication systems. He called on NGOs, educational institutions, and media organizations to take an active role in raising awareness and developing programmes that empower communities to reclaim and revitalise their traditional communication methods.
“By making indigenous communication systems a core part of education, we can instill a sense of pride and ownership among young people,” he stated. “This will ensure that future generations not only appreciate these systems but also see them as valuable tools for expression, connection, and identity.”
Dr. Akpan’s call to action, experts note, is a timely reminder of the importance of preserving Africa’s cultural heritage.
As the continent continues to navigate the challenges of modernity, there is a pressing need to reclaim and celebrate the indigenous knowledge systems that have sustained its communities for centuries. By doing so, Africa can ensure that its rich traditions continue to thrive, even in the digital age.