Tech Bro-Turned-ICT Minister Sparks Debate With Lofty AI Agenda In Nigeria

Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has sparked heated debate in the Nigerian tech ecosystem with his recent push to integrate artificial intelligence (AI) into the country’s development strategy.

Tijani, a key figure in Nigeria’s burgeoning tech scene, recently unveiled a NGN 100 M AI fund (~USD 61 K), backed by Google, as part of his broader agenda to harness AI for solving Nigeria’s local challenges. However, many in the tech community feel that the initiative falls short of what is necessary to drive meaningful AI innovation in the country and ignores more pressing matters.

A Mixed Reaction

The announcement of the AI fund at a recent conference co-organised by the U.S. State Department was meant to be a significant step forward. Ten startups would receive NGN 10 M each (around USD 6 K) in equity-free funding. But the reaction from Nigeria’s tech community has been swift and critical.

Alex Onyia, CEO of edtech startup Educare, expressed scepticism, commenting on X that “NGN 100 M cannot even buy an Nvidia chip used for AI development. This is mere USD 61 K in today’s naira, which is not up to the annual salary of a proper AI engineer.” His comments echo a broader sentiment that the funding amount is woefully inadequate for the high costs associated with AI research and development.

Others in the tech space have highlighted the disconnect between attempting to lump AI on top of glaring infrastructural deficits, as well as the disparity between this initiative and the more substantial support Google offers elsewhere. 

An Ambitious AI Vision with Significant Challenges

Tijani, known for his role in shaping Nigeria’s tech ecosystem via the prominent CcHub incubator, has ambitious plans for the country’s digital economy. His strategy includes publishing a national AI strategy and a program to train three million tech workers, all in a bid to position Nigeria as a key player in the global tech landscape. But while the minister’s vision is forward-looking, the realities of AI development pose significant hurdles.

The high cost of AI infrastructure is a recurring theme in the criticisms of the fund. Training AI models requires advanced hardware, including graphics processing units (GPUs) from companies like Nvidia, which can cost over USD 30 K per unit.

Furthermore, developing AI systems requires vast amounts of data and computational power. For instance, OpenAI’s CEO Sam Altman revealed that training GPT-4 cost over USD 100 M—dwarfing the relatively modest resources allocated by the Nigerian government.

A report from Stanford University’s Artificial Intelligence Index 2024 also underscores the financial barriers to AI innovation. The report notes that the cost of training AI models is rising, often running into millions of dollars. This reality limits the participation of smaller players and non-industry actors, particularly in countries with limited resources, like Nigeria.

The Broader AI Context in Africa

Despite the challenges, interest in AI is growing across Africa. For one, the Nigerian government is supporting a Lagos-based startup working on a large language model to boost local language representation in global AI systems.

Chinasa T. Okolo, a Brookings Institution fellow involved in both Nigeria’s AI strategy and the African Union’s, has observed a “very high level” increase in AI interest across the continent. According to Okolo, who spoke to Semafor Africa, “There’s a very big interest from outside funders, so more African governments are starting the process of developing national strategies which will hopefully evolve to regulation in a couple of years.”

Yet, Africa’s AI preparedness remains low. Nigeria’s score on the International Monetary Fund’s AI Preparedness Index stands at 34%, slightly above the sub-Saharan African average but far behind countries like South Africa, which scores 50%. The U.S., Canada, China, and most of Europe, in comparison, score above 65%. Also, Africa’s AI startups appear to be missing out on the AI gold rush with less than 1% of funding raised globally.

Nevertheless, optimism about AI’s potential in Nigeria comes from past successes in the country’s digital transformation where technological leaps have enabled the country to leapfrog shortcomings and achieve wins notably in financial services most recently.

A Disconnect Between Ambition and Reality?

For all the enthusiasm, the fundamental question remains: can a NGN 100 M AI fund make a dent in Nigeria’s AI landscape? While the initiative aims to seed AI-driven innovation, critics argue that Nigeria’s more pressing concerns—such as poverty, illiteracy, and chronic electricity shortages—may need to be addressed before AI can take root.

On top of that, some industry players believe that Nigeria is starting too late to catch up with the global AI race. Gideon Ajose, a Nigerian techie, remarked, “Honestly, I applaud your efforts but this will not even move a needle in the AI needs of Nigeria. And it’s hurtful because if you weren’t in government and you were practising privately, you’d never announce this.”

A Contentious Path Forward

Tijani’s AI push reflects the broader tension between ambition and reality in Nigeria’s digital economy. While the minister has laid out an impressive vision to integrate AI into the country’s future, the criticism surrounding the fund suggests that much more is needed—both in terms of financial commitment and infrastructure development—to achieve meaningful progress.

The stakes are high, but Nigeria’s tech community seems divided on whether this initiative will be the breakthrough the country needs or just another well-intentioned but underfunded effort. For now, the spotlight is on Bosun Tijani to deliver on his AI agenda amid growing scepticism.

Featured Image Credits: US Mission Nigeria