What rest of Africa can learn from Nigeria in AI investment

Dubai. As the global tech and innovation ecosystem convenes in Dubai for Gitex 2024, there is renewed hope and vigour for Africa’s role in a fast-changing world where artificial intelligence and other tech disruptors are redefining the way we live.

With collaboration at the core of the agenda, Africa is uniquely positioned to benefit from this approach, which looks for partnerships in forging a future artificial intelligence (AI) economy.

This is where Nigeria stands tall. As one of Africa's largest economies and most populous, the West African country is also the continent’s AI hub, boasting the largest AI ecosystem in the region. In September 2025, the Nigerian States of Lagos and Abuja will host Gitex, becoming the only second country in Africa after Morocco to host the tech extravaganza.

For Africa to succeed in AI, key lessons must be learnt, and Nigeria stands as a reflection board.

“Nigeria is a mythical beast with over 220 million people and an inspiring youth population. It is the single largest AI market in Africa,” said Trixie LohMirmand, the executive vice president of events and management at Dubai World Trade Centre and also the CEO of Kaoun International. She added that the event provides an opportunity for startups to be mentored and given access to capital. Over 1,000 startups and 500 government officials and investors are lined up to attend the Nigerian edition of Gitext in Lagos and Abuja.

Trixie admitted that there were a lot of jitters and concerns at the beginning when the idea of entering the Nigerian and African markets first came up. “Yes, it is a high-risk market, but the rewards are also very high,” she said, adding that Gitex collaborates with the Nigerian government and private sector to ensure a safe space for all investors.

Today, technology is essential in Africa. It is not a luxury or an entitlement. As digital continues to influence and disrupt the way Africans live and work, global tech investors are looking at the continent as a potential new market with vast untapped opportunities.

It is such potential that saw companies such as Redington enter the African market. The CEO of the global IT services and technology solution provider, Viswanath Pallasena, says the firm is addressing technology friction by escalating the rate of adoption of tech in Africa and Nigeria. Redington is one of many companies that are looking to tap into the continent’s population dividend, where over 60 percent are youth, promising a robust workforce and market.

Amazon Web Services (AWS) says there’s never been a better time to be involved in everything in Nigeria. The company looks at the West African nation as a powerhouse on the global AI stage.

Tanzania has highlighted the strategy it is taking to embrace technological advancements such as artificial intelligence in its digital economy. According to the director general of the ICT Commission, Dr Nkundwe Mwasaga, the safety and security of the people is the government’s top priority in advancing AI.

“As Tanzania delves deeper into the realm of artificial intelligence and emerging technologies, safeguarding our citizens against malicious actors takes precedence,” he shared. This comment by the ICT Commission shows that the government is cognisant of the pros and cons of AI. To succeed in Africa, having government backing is essential.

Representatives from the federal and state governments in Nigeria expressed how they are embracing AI and the opportunities it stands to offer.

According to Nigeria’s minister of Innovation, Science and Technology, Uche Nnaji, the country boasts of over 2000 tech startups worth over $9 billion. 80-90 percent of the startups are in Lagos and involved in agritech, fintech, health tech, and other sectors. “The government is creating good policies and regulations for startups to leverage,” he said. The National Commissioner/CEO of the Nigeria Data Protection Commission, Dr Vincent Olatunji, says that the government is ensuring that investors who invest in Nigeria are secured. “We also ensure the safety of personal data and your business,” he said as a show of commitment by Africa to attract global tech investors.

Last quarter (Q3), start-ups in Africa raised over $600 million in funding (equity, debt, grants; excluding exits) and $1.4 billion total since the first quarter, according to research platform Africa: The Big Deal. The Federal House of Representatives and also the house committee on ICT chair, Adedeji Olajide, says for investors, the time is now to invest in Africa and Nigeria.

“We are putting in the right framework that will guide the tech ecosystem. We will not put roadblocks to creativity. We are willing to amend our laws to be friendly. We will do whatever it takes to make Nigeria an attractive investment destination.”

Nigerian Senator Shuaib Salisu, the Committee on ICT and Cyber Security chair, remarked that the government is amending the Cybercrimes Act to make it friendlier to tech investors. “Nigeria has given you Nollywood and now we are positioning ourselves in the tech space,” he said. The director general of Nigeria’s National Information Technology Development Agency, Kashifu Abdullahi, shared insights on the country’s strategic digital blueprint, which has pillars such as knowledge, policy and infrastructure.

“We are intentional about building digital literacy with a goal of achieving 95 percent digital literacy by 2030,” he shared. He also added that research in areas such as AI, IoT and robotics is critical for digital advancement.

But for Africa to be a driving force in AI, creating an enabling environment with a conducive framework for businesses to thrive is critical.

The government representatives from Nigeria believe that Africa has no reason to be left behind. “We are the future of human capital with a young population,” said Abdullahi.

Gitex is the largest tech and startup event in the world, which attracts innovators and tech investors from across the globe, both from the private and public sectors.

This year’s conference, which is happening at the Dubai World Trade Centre and the Dubai Harbour, has seen the participation of more than 400 government and digital development entities that are forming new alliances with the world’s most dynamic economies and state agencies.