The World Bank has noted that 44% of firms in Nigeria and Kenya are already deploying artificial intelligence (AI) technology, highlighting the country's growing role as an AI hub in Africa. This development comes amid concerns over rising fuel prices, which the bank warns could slow Nigeria’s efforts to reduce poverty.
The report, published by the World Bank, indicates that while AI adoption is increasing, challenges such as power shortages continue to hinder broader progress. The bank also raised its 2026 economic growth forecast for Nigeria to 4.3%, but cautioned that high fuel costs could undermine these gains.
Fuel price increases have been a persistent issue in Nigeria, affecting both households and businesses. The World Bank’s warning comes as the country prepares for key political events, with the report suggesting that increased government spending ahead of elections may further complicate economic reforms.
Nigeria’s AI sector is seen as a potential driver of growth, with the country positioning itself as one of Africa’s leading hubs for technological innovation. However, the success of this sector remains dependent on addressing infrastructure and energy challenges. The World Bank’s findings underscore the need for sustained investment and policy support to ensure long-term economic stability.
