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IMF ranks Nigeria among Africa’s top AI economies, flags infrastructure hurdles – Technology Times

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Nigeria has emerged as one of Africa’s most promising economies for artificial intelligence (AI)-driven growth, with the International Monetary Fund (IMF) ranking the country among the continent’s top performers in AI readiness. 

However, the global financial institution warns in the report reviewed by Technology Times that chronic deficits in electricity, broadband infrastructure and digital skills could prevent the country from fully capitalising on the technology’s economic potential.

The findings are contained in the IMF report, “Unlocking the Potential: AI in Sub-Saharan Africa,” which positions Nigeria among the region’s five economies expected to realise the greatest productivity gains from AI under current conditions. The report, however, stresses that translating this potential into sustained economic growth will require significant investment in the country’s digital and physical infrastructure.

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Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, is seen in the photo. The IMF ranks Nigeria among Africa’s top AI economies but warns that electricity, broadband and digital skills gaps threaten AI-driven growth. Image credit: FMCIDE.

The report identifies Nigeria as one of the five Sub-Saharan African countries with the highest projected productivity gains from AI, reflecting the country’s growing technology ecosystem, expanding fintech industry and increasing digital adoption.

According to the IMF, Nigeria belongs to a select group of Sub-Saharan African economies, including Botswana, Mauritius, Namibia, Seychelles and South Africa, whose labour markets have relatively high exposure to occupations that stand to benefit from AI adoption.

Unlike many countries in the region where employment remains concentrated in sectors with limited AI exposure, Nigeria’s economic structure provides stronger opportunities for AI to augment worker productivity, improve business efficiency and support innovation across industries.

Nigeria among Africa’s AI frontrunners

The IMF says Nigeria’s relatively diversified economy, expanding digital ecosystem and growing technology sector place it in a favourable position to harness AI for economic transformation.

The report identifies Nigeria as one of the five Sub-Saharan African countries with the highest projected productivity gains from AI, reflecting the country’s growing technology ecosystem, expanding fintech industry and increasing digital adoption.

This positions Nigeria ahead of many regional peers as governments and businesses race to integrate AI into financial services, healthcare, education, agriculture, manufacturing and public administration.

Despite this strong outlook, the IMF cautions that favourable labour market characteristics alone will not guarantee success.

Instead, the country’s ability to convert AI potential into measurable economic gains will depend on addressing long-standing infrastructure bottlenecks that continue to constrain digital transformation.

Power shortages threaten AI ambitions

Among the biggest risks identified in the report is Nigeria’s persistent electricity challenge.

According to the IMF, nearly half of Sub-Saharan Africa’s population still lacks reliable electricity, while businesses across the region continue to suffer from frequent power interruptions.

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Mr. Joseph Tegbe, Minister of Power, is seen in the photo. The IMF ranks Nigeria among Africa’s top AI economies but warns that electricity, broadband and digital skills gaps threaten AI-driven growth. Image credit: Ministry of Power.

For AI technologies, reliable electricity is not optional. Cloud computing platforms, AI training systems, data centres and high-performance computing facilities require uninterrupted power to operate efficiently.

For AI technologies, reliable electricity is not optional. Cloud computing platforms, AI training systems, data centres and high-performance computing facilities require uninterrupted power to operate efficiently.

The IMF notes that Nigeria’s dependence on self-generated electricity illustrates the scale of the challenge.

According to the report, 86% of Nigerian firms own or share electricity generators, underscoring the extent to which businesses rely on alternative power sources to remain operational.

While backup generators reduce downtime, they significantly increase operating costs, limit productivity gains and erode many of the efficiency benefits AI promises to deliver.

Broadband remains another critical gap

Beyond electricity, the IMF identifies broadband connectivity as another major barrier to AI adoption.

Although mobile network coverage extends to most of Africa’s population, internet usage, smartphone penetration and broadband quality remain below global averages.

The report argues that affordable, high-capacity broadband networks are essential for AI-powered applications, which increasingly rely on cloud computing, real-time data processing and digital public infrastructure.

Without widespread access to reliable broadband, businesses may struggle to deploy AI solutions at scale despite increasing availability of AI models and software platforms.

AI leadership requires infrastructure investment

The IMF argues that the debate around AI in Africa should move beyond access to technology itself.

Instead, governments should prioritise building the enabling environment that allows businesses, researchers and public institutions to adopt AI effectively.

“The policy agenda is therefore not simply about promoting AI adoption but about enabling broad-based, inclusive diffusion,” the report states.

“The region does not need to be at the technological frontier to benefit, but it must be able to adopt, adapt, and scale AI rapidly and inclusively.”

To unlock AI’s economic benefits, the IMF recommends that governments focus on five strategic priorities:

  • Expanding reliable and affordable electricity supply.

  • Accelerating broadband and digital infrastructure deployment.

  • Investing in digital, technical and AI-related skills.

  • Supporting local innovation ecosystems and entrepreneurship.

  • Developing governance frameworks that promote trust while managing AI risks.

The report warns that without these foundational investments, countries with strong AI potential could still fall behind as global AI adoption accelerates.

“The region’s AI trajectory is not predetermined: Policy choices will shape whether AI supports convergence or deepens divergence,” the IMF says.

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Dr Aminu Maida, Executive Vice Chairman/CEO of Nigerian Communications Commission (NCC), is seen in the photo. The IMF ranks Nigeria among Africa’s top AI economies but warns that electricity, broadband and digital skills gaps threaten AI-driven growth. Image credit: NCC.

Nigeria’s AI ecosystem continues to expand

Despite infrastructure constraints, Nigeria has continued to strengthen its AI ecosystem through government policy and private-sector investment.

Over the past year, the Federal Government has launched the ATLAS Network to support the development of African large language models (LLMs) while advancing implementation of the National Artificial Intelligence Strategy as part of broader digital economy reforms.

The IMF also highlights regional investment in AI computing infrastructure, citing Cassava Technologies’ partnership with NVIDIA to deploy graphics processing units (GPUs) across facilities in Nigeria and other African markets.

The initiative is expected to improve access to the computing capacity required for developing and deploying AI applications across the continent.

Combined with Nigeria’s large technology talent pool, vibrant startup ecosystem and growing fintech sector, these investments could strengthen the country’s position as one of Africa’s emerging AI leaders.

A narrowing window of opportunity

While optimistic about Nigeria’s long-term prospects, the IMF stresses that the opportunity presented by AI is time-sensitive.

“AI presents a narrow but meaningful window of opportunity for countries in Sub-Saharan Africa to accelerate growth and improve living standards,” the report states.

The institution concludes that Nigeria’s ambition to become a continental AI powerhouse will ultimately depend less on access to AI models than on whether it can modernise the infrastructure that supports them.

Reliable electricity, affordable broadband, stronger digital skills and supportive policy frameworks, the IMF argues, will determine whether Nigeria converts its favourable AI ranking into lasting productivity gains and inclusive economic growth.

As global investment in AI accelerates, the report suggests that Nigeria has already secured a place among Africa’s leading AI economies. The greater challenge now is ensuring that infrastructure development keeps pace with technological ambition so that the country can translate its AI potential into tangible economic outcomes.

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Osun Speaker’s residence surrounded – Adeleke’s TICC raises alarm [VIDEO]

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The Imole Campaign Council, TICC, has raised the alarm over an alleged presence of more than 10 black Hilux vehicles around the residence of the Speaker of the Osun State House of Assembly, Hon. Adewale Egbedun.

Pelumi Olajengbesi, spokesperson for TICC, the campaign council for the re-election of Governor Ademola Adeleke of the Accord Party in the ongoing governorship election, raised the alarm in a statement issued on Saturday morning.

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PLABOC Engages Plateau Ministry of Tourism, Identifies New Opportunities for Business Growth and Collaboration

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The Plateau Business Owners Council (PLABOC) through its President Mr Kim Ndoh has strengthened its engagement with the Plateau State Ministry of Tourism, Culture and Hospitality, following a strategic visit aimed at deepening collaboration and creating greater opportunities for businesses across the tourism, hospitality, creative and wider business ecosystem.

The visit provided an opportunity for PLABOC to establish a stronger working relationship with the Ministry, gain deeper insight into government initiatives affecting businesses, and identify areas where business owners can participate in and benefit from programmes of the Plateau State Government.

The Ministry through the commissioner warmly received the PLABOC delegation and expressed appreciation for the visit, acknowledging the critical role of business owners in driving the growth of the tourism sector and contributing to the broader economic development of Plateau State.

PLABOC Presents Its Mission and Vision

During the engagement, the Secretary-General of PLABOC appreciated the Ministry for receiving the delegation and introduced members of the team, who also presented themselves and explained the nature of their respective businesses.

The Secretary-General subsequently explained the purpose of the visit, as contained in the formal letter presented to the Ministry, while also outlining the mission and vision of PLABOC.

The President of PLABOC further elaborated on the organisation’s objectives and its commitment to creating a stronger business ecosystem where entrepreneurs can access opportunities, build sustainable enterprises and contribute meaningfully to the development of Plateau State.

Government’s Approach to Business Development

Responding to the delegation, the Commissioner expressed delight at seeing a strong representation of young entrepreneurs within the PLABOC team.

She explained that the Plateau State Government is intentional about creating an enabling environment where businesses can establish, operate, grow and thrive.

According to the Commissioner, government intervention goes beyond physical infrastructure and includes the development of policies, systems and support mechanisms that make it easier for businesses to succeed.

Among the areas highlighted were:

  • Improved access to land and property for business purposes.
  • A rebate of approximately 50 percent on certain property-related processes.
  • Efforts to accelerate land documentation and processing.
  • Support mechanisms for businesses seeking financing and collateral.
  • Collaboration with financial institutions to improve access to funding.

The Commissioner encouraged business owners to take advantage of existing government programmes rather than waiting solely for direct financial assistance.

₦4 Billion Financing Opportunity for MSMEs

One of the major highlights of the engagement was the discussion on financing support for Micro, Small and Medium Enterprises (MSMEs).

The Commissioner disclosed that the Plateau State Government had established a financing arrangement with the Bank of Industry (BOI), involving a proposed contribution of ₦2 billion from the State Government and another ₦2 billion from the Bank of Industry, creating a combined funding pool of approximately ₦4 billion for qualifying businesses.

She explained that the State Government would serve as collateral for the arrangement, while appropriate processes would be established to identify genuine businesses with the capacity and potential to grow.

PLABOC members were encouraged to properly establish and position their businesses to take advantage of such opportunities when they become available.

Greater Jos Masterplan to Create New Business Opportunities

The Commissioner also briefed the delegation on the planned Greater Jos Masterplan, which is expected to provide a long-term framework for development, investment and job creation across Plateau State.

According to her, the development strategy is expected to extend beyond the major urban centres and incorporate selected Local Government Areas, including locations connected to agro-processing activities.

The initiative is expected to create opportunities for businesses to establish themselves closer to emerging markets, social facilities and supporting infrastructure, reducing the concentration of economic activities within the major metropolis.

PLABOC was encouraged to communicate these emerging opportunities to its members across the various Local Government Areas.

Plateau Tourism Masterplan

Another major area of discussion was the development of a Tourism Masterplan for Plateau State.

The Commissioner described the initiative as a long-term framework for developing tourism infrastructure and tourism-related businesses across the state.

She indicated that significant progress had been made towards the development of the Masterplan, with activities connected to its planning expected around September in conjunction with World Tourism Day.

The Masterplan is expected to provide a structured framework within which tourism-related businesses can operate, grow and benefit from the state’s tourism development strategy.

The Commissioner further indicated that technical support would be provided to operators within the tourism sector.

Stronger Regulation and Standardisation for Tourism Businesses

The Ministry also disclosed plans to strengthen regulation and standardisation within the tourism and hospitality industry.

The Commissioner explained that operators would be expected to meet clearly defined standards appropriate to the nature and category of their businesses.

For hotels, lodges and other accommodation facilities, this would include standards corresponding to their respective categories and ratings.

According to the Commissioner, stronger regulation would not only ensure quality but would also provide businesses with greater clarity, protection and a more structured operating environment.

Support for Creative Businesses

The creative industry also featured prominently during the discussion.

The Commissioner disclosed that the government was developing support structures for creative entrepreneurs, including plans for a purpose-designed creative facility known as The Standard Building.

The proposed facility is expected to provide workspace and access to supporting services, creating an environment where creative entrepreneurs can develop their skills and businesses locally while serving clients and markets globally.

Creative entrepreneurs were encouraged to position themselves to meet international standards in quality, professionalism and service delivery.

December Declared Tourism Month in Plateau

The Commissioner informed the delegation that December has been declared the Month of Tourism in Plateau State.

Business owners operating within the tourism and hospitality ecosystem were encouraged to strategically position themselves to benefit from the activities and programmes expected during the period.

The Commissioner stressed that businesses should not wait for government to provide direct financial support. Instead, entrepreneurs should identify opportunities created by government programmes and develop products and services that respond to the needs of visitors, tourists and participants.

A programme map containing planned activities for the period is also expected to be shared with business stakeholders to enable them identify areas where they can participate.

Tourism Events as Business Opportunities

The Commissioner highlighted tourism events as important platforms for stimulating local economic activity.

Particular reference was made to activities involving the Lamigo Golf Club, including tournaments expected to attract participants from different parts of Nigeria.

PLABOC members were encouraged to explore commercial opportunities associated with such events, including:

  • Accommodation.
  • Food and catering.
  • Transportation.
  • Fashion.
  • Creative services.
  • Merchandise.
  • Tourism and hospitality services.

Business owners were urged to deliberately market their products and services around major events in order to benefit from increased economic activity generated by visitors.

Quality, Competitiveness and Professionalism

A major message from the Commissioner was the need for businesses in Plateau State to improve the quality of their products and services.

She noted that while government has a responsibility to create opportunities and an enabling environment, business owners must also take responsibility for improving their skills, understanding market demands and delivering quality services.

Areas highlighted included:

  • Quality of products and services.
  • Timely delivery.
  • Professionalism.
  • Customer experience.
  • Competitive pricing.
  • Understanding global market expectations.
  • Continuous improvement and skills development.

The Commissioner encouraged entrepreneurs to compete based on quality and excellence rather than simply attempting to offer the lowest prices.

Promoting Local Products and Cultural Heritage

The engagement also highlighted the importance of turning Plateau’s local products and cultural heritage into commercially viable products and tourism attractions.

The Commissioner referenced Goduk, a locally produced fabric, as an example of a product that could be deliberately developed, packaged and promoted to wider markets.

She explained that tourism activities and international visitors could provide opportunities for local products to gain exposure beyond Plateau State.

Entrepreneurs were therefore encouraged to explore ways of packaging and promoting local materials, fashion, crafts, food and cultural products for visitors and international markets.

Improving Hospitality and Restaurant Standards

Restaurant and hospitality operators were specifically encouraged to improve the overall quality of their businesses.

The Commissioner highlighted the importance of:

  • Quality food and cuisine.
  • Excellent customer service.
  • Overall hospitality experience.
  • Presentation and appearance of business premises.
  • Professionalism of staff.
  • Value offered to customers.

She noted that food and cuisine form an important part of the tourism experience and encouraged restaurant operators to become more intentional about the quality and presentation of their offerings.

The need for businesses in Jos and across Plateau State to raise their standards and compete favourably with businesses in other major Nigerian cities was also emphasised.

Training and Technical Support

The Ministry indicated that training and technical support would form part of its efforts to improve standards across the tourism and hospitality sector.

Awareness and training programmes are expected to help businesses upgrade their standards, improve service delivery and better position themselves within the growing tourism economy.

Business operators were encouraged to actively participate in such programmes whenever they become available.

Building Businesses Through Quality and Reputation

The Commissioner also shared examples demonstrating how entrepreneurs can grow their businesses through excellence and reputation.

One example involved a fashion designer whose work received wider exposure after producing a high-quality outfit for a notable individual.

The example illustrated how a single excellent product or service can generate referrals, visibility and access to new markets.

Entrepreneurs were therefore encouraged to focus on becoming exceptionally good at what they do rather than approaching business solely from the perspective of making immediate profit.

Strengthening the PLABOC–Ministry Partnership

The Ministry expressed its willingness to develop a robust and sustainable working relationship with PLABOC.

The engagement identified several areas of potential collaboration, including:

  • Business advocacy.
  • Tourism development.
  • Hospitality development.
  • Creative industry support.
  • Business training and technical support.
  • Information sharing.
  • Promotion of government programmes.
  • Participation of PLABOC members in tourism activities.
  • Promotion of local products and businesses.
  • Connecting businesses with emerging opportunities.

The Commissioner encouraged PLABOC to position itself as a change-maker in the business community, helping entrepreneurs understand emerging opportunities, improve their businesses and actively participate in the economic development of Plateau State.

A New Chapter for Business and Tourism in Plateau

The engagement between PLABOC and the Ministry of Tourism, Culture and Hospitality represents an important step towards stronger collaboration between government and the private sector.

With emerging initiatives around MSME financing, the Greater Jos Masterplan, the Tourism Masterplan, creative industry development, tourism events, training and standardisation, business owners across Plateau State have been encouraged to become more proactive, innovative and prepared to take advantage of new opportunities.

For PLABOC, the engagement reinforces its commitment to advocating for business owners while building stronger bridges between entrepreneurs and government institutions.

As Plateau State positions itself for greater tourism, investment and economic growth, the collaboration between government and business owners could play a significant role in turning the state’s abundant tourism, cultural and entrepreneurial potential into sustainable economic opportunities.



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