Nigeria matches US as AI adoption among firms jumps to 40%-W..

Artificial intelligence (AI) adoption among Nigeria’s formal businesses has surged from less than five per cent in 2022 to about 40 per cent in 2025, placing the country on par with the United States in business AI usage, according to the World Bank’s World Development Report 2026.

The report, titled “World Development Report 2026: The Promise of Artificial Intelligence,” identified Nigeria and Kenya as Africa’s fastest-growing AI adopters, highlighting the rapid pace at which businesses in developing economies are embracing AI as generative technologies become cheaper and easier to deploy.

According to the World Bank, the findings are based on its Enterprise Survey on AI Adoption, which assessed AI usage among formal firms with at least five employees across India, Jordan, Kenya, Mexico, Nigeria, Thailand and the United States.

The report stated that AI adoption among Nigerian firms increased dramatically within three years, matching the level recorded in the United States.

“Between 2023 and 2025, several developing economies experienced a rapid surge in AI adoption among formal firms with at least five employees. In Kenya and Nigeria, less than five per cent of such firms used AI in 2022, but by 2025 this figure had risen to about 40 per cent, matching adoption rates in the United States,” the report stated.

The World Bank said the findings demonstrate that AI adoption is no longer confined to highly digitised businesses.

It noted that 21 per cent of Nigerian firms that still rely primarily on handwritten records to manage their operations have already adopted AI tools, with many utilising chatbot applications accessible through mobile phones.

According to the report, the development suggests that sophisticated digital infrastructure is no longer a prerequisite for businesses seeking to benefit from artificial intelligence.

However, the World Bank cautioned that matching the United States in adoption rates does not necessarily translate into similar levels of sophistication or depth of AI deployment.

The report explained that while Nigerian firms are increasingly integrating AI into their operations, the complexity, scale and intensity of AI applications remain significantly different from those of advanced economies.

The report comes amid growing concerns over Nigeria’s long-term AI competitiveness.

A recent study titled “Adoption of Artificial Intelligence in Nigeria: A Macro and Micro Economic Review” warned that although AI adoption is accelerating rapidly, Nigeria remains largely dependent on foreign-developed AI models, cloud infrastructure and software platforms.

According to the study, continued reliance on external technologies exposes the country to risks associated with licensing changes, service disruptions, foreign technology policies and the export of valuable local data used to improve overseas AI systems.

The World Bank’s findings nevertheless reinforce Nigeria’s growing prominence within the global AI ecosystem.

Last month, Nigeria emerged as Africa’s highest-performing country in the Global Index on Responsible AI (GIRAI), ranking 38th globally with an overall score of 45.93.

The report recognised Nigeria as a global “Bright Spot” for developing policies that prepare citizens for the AI era while introducing measures aimed at reducing the risks associated with emerging artificial intelligence technologies.

Industry analysts believe the rapid increase in AI adoption presents opportunities to improve business productivity, innovation and competitiveness. However, they argue that sustained investment in local AI infrastructure, indigenous technology development, skills acquisition and regulatory frameworks will determine whether Nigeria evolves from being a major consumer of AI tools into a significant producer of AI solutions.