Sectoral Analysis of AI Adoption and Productivity Gains in Nigeria’s Business Landscape in Nigeria
IJCSE
International Journal of Computer Science Engineering Techniques
ISSN 2455-135X · Peer-Reviewed · Open Access
📚 Volume 10, Issue 3
📅 June 13, 2026
🔖 ID: IJCSE-V10I3P19
Sectoral Analysis of AI Adoption and Productivity Gains in Nigeria’s Business Landscape in Nigeria
Author(s)
OVILI Henry Peter, Daniel Ukpenusiowho, Nwachokor Samuel Chukwuemeka, Orove Osu Joshua, Maduabuchukwu Christopher, Shela Ugbome, Adamugono Endurance, ORUGBA Kenneth Obokparo, Victor Toju Amatoritsero, Emmanuel Ojei, Cyril Benafa
Abstract
This learning conducts a sectoral analysis of Artificial Intelligence (AI) adoption and its resultant productivity advantages within Nigeria’s embryonic business landscape. Whereas AI offerings a transformative opportunity to improve operational competence, data-driven decision-making as well as over-all competitiveness, its incorporation through the Nigerian economy remains jagged. The Financial Technology (Fintech), Healthcare plus Agriculture sectors lead adoption, leveraging AI for critical functions such as swindle detection, client service automation and prognostic analytics to optimize supply chains as well as advance diagnostics. Empirical confirmation proposes that AI adoption absolutely correlates with productivity improvements, comprising up to a 65% upsurge in informed decision-making plus noteworthy operational budget reductions in adopting businesses. Equally, the prevalent deployment of AI, chiefly amid Small as well as Medium Enterprises (SMEs), is relentlessly vulnerable by dangerous hurdles: considerable financial constraints, tenacious infrastructural shortages (unreliable power plus limited internet admittance), a noteworthy digital skills gap as well as an undersized regulatory framework for data governance. The investigation clinches that while Nigeria enjoys the entrepreneurial ambition besides potential for AI leadership, bridging the infrastructural plus skills gulfs through targeted policy involvements and tactical investment is critical to completely unlock AI-driven productivity as well as withstand long-term economic development.
Keywords
AI Adoption, Nigeria, Productivity Gains, Sectoral Analysis, Fintech, Infrastructure
References
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[23] Ugochukwu, M. A., Aliyu, F. B. (2025). Spatial analysis of digital adoption: Fintech versus traditional sectors in Nigeria. Wukari International Studies Journal, 8(2), 112-130.
[2] Aklilu Assefa, Adato Henry, Onsare. (2024). Financial Management and Its Barriers on SMEs in Selected Developing Countries: A Systematic Literature Review Approach. International Journal of Finance and Banking Research, Vol. 10, No. 3, pp. 53-63.
[3] Bamidele Michael Omowole, Amarachi Olufemi-Phillips, Onyeka Chrisanctus Ofodile. (2024).
[4] Businessday NG. (2025, February 12). AI funding reality check: Nigeria’s NAIS relies heavily on global partners. Businessday Media.
[5] Ebri, N. O. (2024). Financial constraints as a barrier to digital transformation for SMEs in developing economies. Proceedings of the Global Conference on Business and Economics.
[6] Fair East Publishers. (2025). Broadband access and computational readiness for emerging technologies in West Africa. Lagos, Nigeria: Author.
[7] Fajer Danish. (2025). Integrating Artificial Intelligence, Security for Environmental and Business Sustainability. Springer, volume 608, pp. 207-221.
[8] Federal Ministry of Communications, Innovation & Digital Economy. (2025). Nigeria’s National Artificial Intelligence Strategy (NAIS) 2025-2030 Roadmap. Abuja, Nigeria: Author.
[9] K. V. Pradeep, N. Karunakaran. (2024). Artificial intelligence and human capital: A review. Journal of Management Research and Analysis, 2024, 11(3), 154-157.
[10] Lagos Business School. (2025). Policy brief on localizing AI development and infrastructure for sustainable economic growth.
[11] Mastercard. (2025). The state of digital financial services in Nigeria 2025 outlook.
[12] McKinsey Global Institute. (2025). The economic potential of AI in emerging markets: Focusing on policy and infrastructure.
[13] Ninda Lutfiani, Sutarto Wijono, Hindriyanto Dwi Purnomo, Noor Azura Zakaria. (2025). Organizational Readiness and Barriers to Digital Transformation in Indonesian SMEs. APTISI Transactions on Management (ATM), Vol. 9, No. 3, 2025, pp. 256-266.
[14] Nsisong Louis Eyo-Udo. (2024). Barriers and drivers of digital transformation in SMEs: A conceptual analysis. International Journal of Scholarly Research in Science and Technology, vol. 5, 2019-036.
[15] Nwagbala, I., Chigozie, E., Audu, Y. R. Bridging the technical skills gap: A critical review of AI readiness in Nigerian firms. Journal of Human Capital Development and Innovation, 19(1), 15-30.
[16] Nwokocha, C. K., Nwankwo, U. J. (2024). Infrastructure deficit and digital inequality in sub-Saharan Africa: A case study of power reliability. International Review of Computing and Electrical Engineering, 34(4), 89-101.
[17] Okafor, P. I. (2025). Beyond acquisition: Organizational readiness for AI integration in Nigerian SMEs. International Journal of Knowledge and Contemporary Digital Trends, 10(3), 201-218.
[18] Okpabi, D. F., Akintola, E. O. (2025). Policy versus implementation: A critique of Nigeria’s AI strategy framework. African Journal of Technology and Policy, 12(1), 45-62.
[19] PwC Nigeria. (2025). Achieving AI productivity gains: Challenges and pathways for African enterprises.
[20] Samuel Omokhafe Yusuf, Remilekun Lilian Durodola, Godbless Ocran, Justina Eweala Abubakar, Amarachi Zita Echere and Adedamola Hadassah Paul-Adeleye. (2024). Challenges and opportunities in AI and digital transformation for SMEs: A cross-continental perspective. World Journal of Advanced Research and Reviews, 23(03), 668-678.
[21] Sarah Bankins, Xinyu Hu, Yunyun Yuan. (2024). Artificial intelligence, workers, and future of work skills. Elsevier Current Opinion in Psychology, Volume 58, August 2024, 101828.
[22] Stella Chinelo Nwagbala, Francisca Nkiruka Ezeanokwasa, Raphael Nwachukwu, Ngozi Justina Uzodike, Ogechukwu Pauline Nwosu. (2025). AI adoption and sustainability of SMEs in Africa: Opportunities and challenges. International Journal of Science and Research Archive, 14(01), 467-475.
[23] Ugochukwu, M. A., Aliyu, F. B. (2025). Spatial analysis of digital adoption: Fintech versus traditional sectors in Nigeria. Wukari International Studies Journal, 8(2), 112-130.
📋 How to Cite This Paper
OVILI Henry Peter, Daniel Ukpenusiowho, Nwachokor Samuel Chukwuemeka, Orove Osu Joshua, Maduabuchukwu Christopher, Shela Ugbome, Adamugono Endurance, ORUGBA Kenneth Obokparo, Victor Toju Amatoritsero, Emmanuel Ojei, Cyril Benafa (2026). Sectoral Analysis of AI Adoption and Productivity Gains in Nigeria’s Business Landscape in Nigeria. International Journal of Computer Science Engineering Techniques, 10(3), 130–. ISSN: 2455-135X. DOI: https://doi.org/10.5281/zenodo.20682943
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