GSMA highlights Nigeria’s AI-driven path to economic growth and climate impact 

This article is published in association with GSMA.

Agriculture and energy are among key sectors of AI opportunity in Nigeria as the African continent looks to untap almost $3 trillion of potential value by harnessing the new technology effectively 

7^th August 2024, Lagos: The GSMA has identified Nigeria as a pivotal player in the advancement of artificial intelligence (AI) for driving socio-economic progress and climate impact in its new report, “AI for Africa: Use Cases Delivering Impact – Nigeria Deep Dive“.  

It follows the continent-wide report, funded by the UK Foreign, Commonwealth and Development Office (FCDO), which highlighted that while Africa currently accounts for only 2.5% of the global AI market, emerging AI applications hold the potential to boost African economic growth by an astonishing $2.9 trillion by 2030. 

The newly-released analysis on Nigeria, also funded by the FCDO, highlights AI’s transformative capacity in the country in key sectors such as agriculture, energy and climate action, and underscores Nigeria’s potential to lead in AI-driven development across the continent. 

Agriculture: enhancing productivity and food security 

Agriculture remains a significant sector in Nigeria, employing nearly 40% of the population and contributing a quarter of the GDP. The report identifies substantial opportunities for AI and digital technologies to enhance resource efficiency, increase productivity, improve market access, and reduce post-harvest losses. AI-powered solutions like Crop2Cash’s FarmAdvice and ThriveAgric’s Agricultural Operating System are already making strides by providing tailored advice and financial services to farmers. 

However, challenges such as limited data availability, high costs, and a significant digital skills gap among smallholder farmers hinder the widespread adoption of AI.

Energy: optimising access and efficiency 

Nigeria’s energy sector faces challenges including an ageing infrastructure and a reliance on fossil fuels. The deployment of AI technologies in the field remains nascent in Nigeria but has significant potential to improve energy distribution and reliability. Innovations like Beacon Power Services’ AI-enabled grid management platform and Husk Power Systems’ AI-driven mini-grids can optimise energy usage and extend access to rural areas. 

These solutions are critical in addressing the energy sector’s needs, providing both on-grid and off-grid systems with the tools to enhance efficiency and sustainability. Where access is lacking, AI could also play a role by helping inform energy planning and supporting the financing of solar appliances to reduce energy poverty. 

Climate action: building resilience 

Despite low greenhouse gas emissions, Nigeria is highly vulnerable to climate change. Existing AI-driven solutions include Google’s flood forecasting tool and Chemotronix, a carbon credit platform enabled by AI. 

While climate-related AI applications are currently limited in Nigeria, there is potential to further leverage AI capabilities for climate action, especially around natural resource management. Satellite imagery could help biodiversity mapping and monitoring, while climate modelling could help understand the future impact of climate change in highly polluted areas, helping Nigeria mitigate and adapt to environmental challenges. 

Addressing key challenges 

To fully leverage AI’s potential, the report identifies several critical areas of focus: 

1. Data availability and accessibility: investing in localised, domain-specific data collection and ensuring safe data handling practices are essential. Increasing access to high-quality data will help customise AI solutions to local needs. 
2. AI infrastructure and computing: expanding infrastructure, enhancing access to high-performance computing, and prioritising edge computing capabilities are necessary steps. Investments in these areas will support AI scalability and effectiveness. 
3. Skills development: enhancing AI and data science education, accelerating digital literacy, and building capacity for AI users and builders are vital. Developing a skilled workforce will drive innovation and adoption of AI technologies. 
4. Policy and ecosystem support: establishing clear policy roadmaps, encouraging cross-sector collaboration, and promoting local investment are key to fostering a robust AI ecosystem. Strengthening these areas will create an enabling environment for AI growth. 

Strategic recommendations 

The report provides targeted recommendations to support AI deployment in Nigeria: 

1. Invest in localised data collection: support the financing of hardware and devices, including drones, IoT sensors, and smartphones to accelerate data collection across sectors, and support initiatives building local language datasets. 
2. Enhance infrastructure and compute capabilities: invest in data centres, promote clean energy sources, and develop edge computing solutions for low-resource environments. 
3. Foster AI skills and education: capitalise on Nigeria’s young population by enhancing AI and data science curricula, providing scholarships, and supporting capacity-building initiatives. 
4. Strengthen AI ecosystem: encourage public-private partnerships, mitigate investment risks, and boost funding for R&D to promote innovation and sustainable development. 

Max Cuvellier Giacomelli, Head of Mobile for Development at the GSMA, said: “Nigeria’s potential to harness AI for transformative change is immense. The innovative applications we are already seeing in agriculture, energy, and climate action are just the beginning. With further progress around data availability, connectivity, or skills development, the country can truly enable AI to drive significant socio-economic progress.”