World Bank: AI adoption among Nigerian firms jumps to 40%, matching US levels

Artificial intelligence adoption among Nigerian formal businesses has surged over the past three years, placing the country on par with the United States in business AI usage, according to the World Bank’s latest World Development Report.

In the report titled World Development Report 2026: The Promise of Artificial Intelligence, the World Bank identified Nigeria and Kenya as two African countries to have witnessed a sharp rise in AI use among businesses.

The surge underscored how quickly firms in developing economies are embracing the technology as generative AI becomes cheaper and easier to deploy.

What the report is saying

The findings are based on the World Bank Enterprise Survey on AI Adoption, which examined AI use among formal firms across India, Jordan, Kenya, Mexico, Nigeria, Thailand, and the United States.

According to the report, AI adoption among Nigerian formal firms increased from less than 5% in 2022 to about 40% in 2025, bringing the country’s adoption rate in line with that of the United States. Kenya recorded a similar increase.

• “Data from the World Bank Enterprise Survey on AI Adoption show that between 2023 and 2025, several developing economies experienced a rapid surge in AI adoption among formal firms with at least five employees,” it said.
• “In Kenya and Nigeria, for example, less than 5 percent of such firms used AI in 2022, but by 2025, this figure had risen to about 40 percent, matching adoption rates in the United States,” it added.

The World Bank notes that AI adoption is no longer limited to highly digitalised businesses.

One of the report’s more striking findings is that 21% of Nigerian firms that still rely primarily on handwritten records to administer their businesses have already adopted AI in some form, with most using chatbot applications accessible on mobile phones.

This suggests that businesses do not necessarily need sophisticated digital infrastructure before beginning to benefit from AI.

The World Bank, however, notes that even though Nigeria now matches the United States in the share of formal firms using AI, matching adoption rates does not mean matching depth or sophistication of AI use.

More insights

While Nigeria is emerging as one of the fastest adopters of artificial intelligence among developing economies, there is also a need for the country to balance rapid adoption with stronger governance frameworks and local AI capacity development.

Earlier this month, a report warned that Nigeria risks becoming heavily dependent on foreign AI technologies unless it increases investment in domestic AI capabilities.

The report, “Adoption of Artificial Intelligence in Nigeria: A Macro and Micro Economic Review,” noted that while AI adoption is accelerating across the country, Nigeria remains largely a consumer of foreign-built AI models, cloud infrastructure and software platforms.

It notes that reliance on foreign AI systems means Nigerian data could continue to improve technologies owned by companies outside the country, while local institutions remain vulnerable to risks including changes in licensing arrangements, service disruptions and shifts in foreign technology policies.

The contrasting findings highlight a key challenge for Nigeria’s AI journey: moving from simply adopting AI tools to building the capacity, infrastructure and governance systems required to shape how the technology develops locally.

What you should know

The World Bank’s findings come as Nigeria continues to strengthen its position in the global AI landscape.

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

The report identified Nigeria as a global “Bright Spot” for its approach to preparing citizens for the AI era while also establishing measures aimed at reducing potential risks associated with the technology.