By Juliet Umeh

In the bustling streets of Lagos, Mrs. Joy Akin, , begins her day by consulting an artificial intelligence. She, is a seasoned financial analyst and her AI-powered application  provides real-time stock market predictions. 

According to Mrs Akin, “AI has transformed how i approach my work. The application analyzes vast amounts of financial data much faster than I could on my own, allowing me to make more informed decisions for my clients. It predicts trends, flags potential risks, and even offers investment suggestions based on real-time data.

“I still rely on my own expertise, but having AI as a tool has significantlly improves my efficiency and accuracy. However, I do worry about the lack of regulation in this space. We need policies in place to ensure the technology is used ethically and that data privacy is protected.”

However, it is not only Akin that has shared testimonies of pin-point prediction which AI brings to their professions. Doctors in Lagos and Abuja, are increasingly turning to AI to diagnose conditions with remarkable precision.

Eor instance, Dr Tunde Ogundipe, a Cardiologist in Lagos, uses an AI-powered tool to analyze patients heart scans, identifying irregularities that could lead to potential heart issues.

Dr. Ogundipe noted: “The AI system can detect subtle anomalies that might be missed during a manual review. This allows  for early intervention, which can save lives,”

Similarly, in Abuja, Dr. Amina Musa, a radiologist, relies on Ai for analysing complex medical images, such ad MRIs and  CT scans, to detect tumours at earlier stages.

She expalined: “Before adopting AI, there were times when small growths were difficult to identify. Now, the AI highlights these areas with greater precision, allowing us to provide patients with more  accurate diagnoses.”

While AI’s role in healthcare is rapidly growing, these doctors  also emphasise the need for a regulatory framework to address ethical concerns, particularly around patients data privacy anf the accountability of AI-driven decisions.

 Across Nigeria, businesses are adopting AI to streamline operations, reduce costs, and enhance efficiency.

This embrace of AI is positioning Nigeria as a technology-forward nation in Africa.

Yet, beneath the surface, the rapid adoption of AI brings significant challenges and potential risks that demand urgent attention.

The promise of AI in Nigeria

Nigeria’s enthusiasm for AI is evident across various sectors. In the banking and finance industry, AI is revolutionizing service delivery. Chatbots are handling customer inquiries, fraud detection systems are becoming more sophisticated, and credit scoring models are offering personalized financial products. Similarly, in healthcare, AI is being used to predict disease outbreaks, assist in diagnostics, and optimize treatment plans.

The government has recognized AI’s potential and is actively promoting its integration across sectors. The National Information Technology Development Agency, NITDA, is working to position Nigeria as a leader in digital innovation. The ongoing development of the National AI Policy underscores this commitment, aiming to guide the ethical and responsible deployment of AI technologies.

AI startups on the rise

Nigeria’s growing technology ecosystem is witnessing a surge in AI startups. Companies like Kudi.ai, which offers a chatbot for financial services, and Data Science Nigeria, an AI-focused community organizing hackathons and training programs, are at the forefront of this revolution. These startups are not only creating jobs but are also attracting significant investment, contributing to Nigeria’s economic growth.

However, as AI continues to proliferate, it brings with it a series of challenges that cannot be ignored.

The dark side of AI: Job displacement

One of the most significant challenges posed by AI is its impact on the job market. Automation, driven by AI, is expected to displace a substantial number of jobs, especially in low-skilled sectors. For instance, the introduction of AI-powered chatbots in customer service roles has led to job cuts in call centers.

In agriculture, AI-driven machinery is reducing the need for manual labour, leaving many rural workers at risk of unemployment.

For instance, a recent study by the Nigerian Economic Summit Group, NESG, predicts that up to 30 percent of jobs in sectors such as banking, manufacturing, and retail could be automated within the next decade. 

While AI holds the promise of creating new job opportunities, the transition could be painful, particularly for those without the skills needed for the AI-driven economy.

Data privacy and security concerns

Another significant challenge lies in data privacy and security. AI systems rely heavily on vast amounts of data to function effectively.

In Nigeria, where data protection laws are still evolving, the risk of data breaches and misuse is a growing concern. There have already been reports of unauthorized data collection by AI-powered apps, raising questions about data control and usage.

The lack of robust cybersecurity infrastructure exacerbates these concerns. As more businesses and government agencies adopt AI, the potential for cyberattacks increases. For instance, a breach in a healthcare AI system could expose sensitive patient information, leading to severe consequences.

Widening the digital divide

While AI has the potential to bridge gaps, it could also exacerbate existing inequalities in Nigeria. The benefits of AI are largely concentrated in urban areas, where access to technology and infrastructure is better. In contrast, rural communities risk being left behind, deepening socio-economic disparities and limiting access to AI-driven innovations that could improve lives.

For example, AI-powered educational tools could revolutionize learning in urban schools, while rural schools might continue to struggle with basic educational resources. This disparity could result in a generation of young people who are ill-prepared for the demands of the AI-driven job market.

Ethical and regulatory challenges

The rapid adoption of AI also raises ethical challenges. Bias in AI algorithms is a global concern, and Nigeria is not immune. AI systems can perpetuate or even amplify existing societal biases, leading to unfair treatment of certain groups. For example, an AI-powered recruitment tool might favour candidates from specific educational backgrounds, disadvantaging those from less privileged areas.

Regulating AI presents another significant challenge. Nigeria’s regulatory framework is still catching up with the pace of AI development.

Without clear guidelines, there is a risk that AI could be misused, leading to violations of privacy, security, and human rights. The lack of regulation could also stifle innovation, as startups and businesses navigate an uncertain legal landscape.

The urgent need for policy frameworks

The need for robust policy frameworks and regulations to address AI’s challenges was a central theme at the recent ICT Growth Conference 4.0, held in Ikeja, Lagos.

The conference with the theme: “Impact of AI on National Development: Prospects, Policies, and Challenges,” brought together stakeholders from various sectors to discuss AI’s implications for Nigeria’s development.

NITRA Chairman, Mr. Chike Onwuegbuchula, in his speech highlighted the growing trend of technology adoption in Nigeria, noting that while the country ranks first in internet usage in Africa, it still lags in connectivity and internet penetration. He pointed out a similar trend with AI, citing a 130 percent increase in AI-related searches in Nigeria in 2024, according to Google search trends

Onwuegbuchula emphasized the importance of laying a strong foundation for AI integration into the economy.

He stressed the need to introduce AI studies into the school curriculum to avoid repeating past mistakes, such as the lack of practical experience in computer science graduates.

“We must build a solid foundation for AI integration into our economy. It’s crucial that we start with the education sector by including AI in the secondary school curriculum. This will prepare the next generation for the challenges and opportunities that AI presents,” he said.

He called on relevant ICT stakeholders to collaborate with government agencies responsible for designing school curricula to ensure that AI education is prioritized.

During a panel session, Founder of Hyperspace and NeuRal, Dr. Oluseyi Akindeinde, addressed the challenges and opportunities presented by AI.

He maintained that AI would enhance human capabilities rather than replace them, showcasing AI applications in areas like transcription, translation, and education.

The panel emphasized the importance of policy frameworks, regulation, and collaboration in mitigating AI’s negative effects and ensuring that its benefits are equitably distributed.

In his contribution, President of the Nigeria Internet Registration Association, NiRA, Adesola Akinsanya, emphasized that AI systems rely heavily on data, making the protection of personal and sensitive information a top priority. Akinsanya, represented by the Publisher of Techeconomy, Mr. Peter Oluka, said, “Investments in education and training programs are essential to equip young people with the skills needed to thrive in an AI-driven world. Infrastructure development is another key area of concern. AI requires advanced infrastructure, including high-speed internet and computing resources.”

He further highlighted the need for Nigeria to bridge the digital divide that exists between urban and rural areas, as well as among different socioeconomic groups.

“As AI continues to evolve, its potential to drive economic growth, improve businesses and public services, and enhance the quality of life in Nigeria is immense,” Akinsanya added.

The road ahead

As Nigeria continues to embrace AI, the country must prioritize strategic planning, ethical considerations, and inclusive growth. While AI holds immense potential to drive economic growth, improve public services, and enhance the quality of life in Nigeria, this potential can only be fully realized through the implementation of robust policy frameworks and regulations. Stakeholders must work together to create an environment conducive to innovation, research, and the responsible adoption of technology.

By doing so, Nigeria can harness AI’s transformative power to build a more equitable and prosperous future for all its citizens. The time to act is now, to ensure that the AI revolution benefits everyone, leaving no one behind.

Also, highlighting critical role of cybersecurity in Nigeria’s AI-driven digital growth, Founder of Digital Encode, Prof. Peter Adewale Obadare, stressed the critical need for robust cybersecurity in Nigeria’s AI-driven digital transformation. He highlighted the risks of AI misuse, including bias, security vulnerabilities, and data privacy issues. 

Obadare advocated for comprehensive AI governance and architecture, emphasizing education and local research as key to improving data quality and driving economic growth. He also proposed “knowledge banking” and urged partnerships between the private and public sectors to create local content hubs, aiming to position Nigeria as a leader in the global knowledge economy.