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Artificial intelligence (AI) adoption among formal businesses in Nigeria has accelerated dramatically over the past three years, with the country now recording enterprise AI usage levels comparable to those of the United States, according to the World Bank’s World Development Report 2026.
The report, titled “The Promise of Artificial Intelligence,” identifies Nigeria and Kenya as two African economies experiencing some of the fastest growth in AI adoption among businesses, underscoring the rapid uptake of emerging technologies across developing markets as AI tools become more affordable and accessible.
AI Usage Surges Across Nigerian Businesses
According to the World Bank, the proportion of formal Nigerian firms using AI has risen from less than 5% in 2022 to about 40% in 2025, bringing the country’s business adoption rate in line with that of the United States.
The findings are based on the World Bank Enterprise Survey on AI Adoption, which assessed AI usage among formal businesses with at least five employees across Nigeria, Kenya, India, Jordan, Mexico, Thailand, and the United States.
The report notes that the rapid increase demonstrates how businesses in developing economies are embracing artificial intelligence as generative AI applications become easier to deploy and integrate into everyday operations.
AI Adoption Extends Beyond Digitally Advanced Firms
One of the report’s notable findings is that AI adoption is no longer limited to businesses with sophisticated digital infrastructure.
The World Bank revealed that 21% of Nigerian firms that still rely primarily on handwritten records for business administration have already incorporated AI into some aspects of their operations.
Most of these businesses are using AI-powered chatbot applications accessed through smartphones, suggesting that organisations can begin leveraging artificial intelligence without first undergoing extensive digital transformation.
According to the report, this trend highlights the growing accessibility of AI technologies, particularly lightweight generative AI tools that require relatively limited computing resources.
Matching Adoption Does Not Mean Matching Capability
Despite Nigeria reaching the same adoption rate as the United States, the World Bank cautioned that equal usage levels do not necessarily translate into similar levels of sophistication.
While many Nigerian businesses are adopting AI tools, the depth of implementation, computing infrastructure, research capacity and enterprise integration remain significantly different from those in advanced economies.
The report stresses that adoption should be viewed as the first stage of AI development, with long-term competitiveness depending on investments in digital infrastructure, local innovation, technical skills and governance frameworks.
Building Local AI Capacity Remains a Priority
The World Bank’s findings come amid increasing calls for Nigeria to strengthen its domestic AI ecosystem.
Recent industry analyses have warned that although AI adoption is accelerating, much of the technology currently used by Nigerian businesses is developed and owned by foreign companies.
This dependence on imported AI platforms means local organisations remain vulnerable to external licensing changes, service disruptions and shifting international technology policies, while valuable local data continues to support the development of overseas AI systems.
Nigeria’s AI Momentum Gains Global Recognition
The latest findings add to Nigeria’s growing profile in the global AI landscape.
Last month, the country emerged as Africa’s highest-ranked nation in the 2026 Global Index on Responsible AI, placing 38th globally for its progress in AI governance, policy development and efforts to prepare citizens for the opportunities and risks associated with artificial intelligence.
The recognition reflects ongoing government initiatives aimed at promoting responsible AI development while encouraging innovation across sectors including finance, healthcare, agriculture, education and public service.
Opportunities and Challenges Ahead
The World Bank believes the rapid adoption of artificial intelligence presents significant opportunities for Nigeria to improve productivity, stimulate innovation and enhance business competitiveness.
However, the institution emphasises that unlocking AI’s full economic potential will require sustained investment in digital infrastructure, reliable electricity, high-speed internet connectivity, cloud computing, research capabilities and workforce development.
Analysts say Nigeria’s challenge is no longer whether businesses will adopt AI, but whether the country can build the local capacity needed to move from being a consumer of AI technologies to becoming a producer of homegrown solutions capable of competing globally.
As AI adoption continues to spread across Nigerian enterprises, policymakers, businesses and technology stakeholders are expected to focus increasingly on strengthening the ecosystem required to sustain long-term innovation and economic growth.
