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GSMA Highlights Nigeria’s AI-driven Path to Economic Growth and Climate Impact

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The GSMA has identified Nigeria as a pivotal player in the advancement of artificial intelligence (AI) for driving socio-economic progress and climate impact in its new report, “AI for Africa: Use Cases Delivering Impact – Nigeria Deep Dive“.

It follows the continent-wide report, funded by the UK Foreign, Commonwealth and Development Office (FCDO), which highlighted that while Africa currently accounts for only 2.5% of the global AI market, emerging AI applications hold the potential to boost African economic growth by an astonishing $2.9 trillion by 2030.

The newly-released analysis on Nigeria, also funded by the FCDO, highlights AI’s transformative capacity in the country in key sectors such as agriculture, energy and climate action, and underscores Nigeria’s potential to lead in AI-driven development across the continent.

Agriculture: enhancing productivity and food security

Agriculture remains a significant sector in Nigeria, employing nearly 40% of the population and contributing a quarter of the GDP. The report identifies substantial opportunities for AI and digital technologies to enhance resource efficiency, increase productivity, improve market access, and reduce post-harvest losses.

AI-powered solutions like Crop2Cash’s FarmAdvice and ThriveAgric’s Agricultural Operating System are already making strides by providing tailored advice and financial services to farmers.

However, challenges such as limited data availability, high costs, and a significant digital skills gap among smallholder farmers hinder the widespread adoption of AI.

Energy: optimising access and efficiency

Nigeria’s energy sector faces challenges including an ageing infrastructure and a reliance on fossil fuels. The deployment of AI technologies in the field remains nascent in Nigeria but has significant potential to improve energy distribution and reliability.

Innovations like Beacon Power Services’ AI-enabled grid management platform and Husk Power Systems’ AI-driven mini-grids can optimise energy usage and extend access to rural areas.

These solutions are critical in addressing the energy sector’s needs, providing both on-grid and off-grid systems with the tools to enhance efficiency and sustainability. Where access is lacking, AI could also play a role by helping inform energy planning and supporting the financing of solar appliances to reduce energy poverty.

Climate action: building resilience

Despite low greenhouse gas emissions, Nigeria is highly vulnerable to climate change. Existing AI-driven solutions include Google’s flood forecasting tool and Chemotronix, a carbon credit platform enabled by AI.

While climate-related AI applications are currently limited in Nigeria, there is potential to further leverage AI capabilities for climate action, especially around natural resource management.

Satellite imagery could help biodiversity mapping and monitoring, while climate modelling could help understand the future impact of climate change in highly polluted areas, helping Nigeria mitigate and adapt to environmental challenges.

Addressing key challenges

To fully leverage AI’s potential, the report identifies several critical areas of focus:

– Data availability and accessibility: investing in localised, domain-specific data collection and ensuring safe data handling practices are essential. Increasing access to high-quality data will help customise AI solutions to local needs.

– AI infrastructure and computing: expanding infrastructure, enhancing access to high-performance computing, and prioritising edge computing capabilities are necessary steps. Investments in these areas will support AI scalability and effectiveness.

– Skills development: enhancing AI and data science education, accelerating digital literacy, and building capacity for AI users and builders are vital. Developing a skilled workforce will drive innovation and adoption of AI technologies.

– Policy and ecosystem support: establishing clear policy roadmaps, encouraging cross-sector collaboration, and promoting local investment are key to fostering a robust AI ecosystem. Strengthening these areas will create an enabling environment for AI growth.

Strategic recommendations

The report provides targeted recommendations to support AI deployment in Nigeria:

–  Invest in localised data collection: support the financing of hardware and devices, including drones, IoT sensors, and smartphones to accelerate data collection across sectors, and support initiatives building local language datasets.

–  Enhance infrastructure and compute capabilities: invest in data centres, promote clean energy sources, and develop edge computing solutions for low-resource environments.

– Foster AI skills and education: capitalise on Nigeria’s young population by enhancing AI and data science curricula, providing scholarships, and supporting capacity-building initiatives.

– Strengthen AI ecosystem: encourage public-private partnerships, mitigate investment risks, and boost funding for R&D to promote innovation and sustainable development.

Max Cuvellier Giacomelli, Head of Mobile for Development at the GSMA, said: “Nigeria’s potential to harness AI for transformative change is immense. The innovative applications we are already seeing in agriculture, energy, and climate action are just the beginning. With further progress around data availability, connectivity, or skills development, the country can truly enable AI to drive significant socio-economic progress.”


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New Horizons Invests N50m to Empower Almajiris with Skills

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New Horizons Nigeria has launched a N50 million initiative aimed at transforming 21 Almajiri children into skilled computer technicians within 90 days, to tackle youth unemployment and harness human potential.

The Almajiri-to-Tech programme, officially launched in Abuja on Monday, provides participants with full training, meals, clothing, tools, and logistics support, all fully funded.

Speaking at the launch, the Chief Executive Officer of New Horizons, Tim Akano, said the programme represents a new journey in the history of Nigeria by restoring the original purpose of the Almajiri system, which he described as “children sent out to seek knowledge.”

“The word Almajiri comes from an Arabic term meaning emigrant and seeker of knowledge. Historically, children were sent to learn morals, responsibility, and skills to add value to society,” Akano said.

He added that the disruption of this system during colonial times forced many children onto the streets, a challenge that persists today.

Akano highlighted the urgency of addressing the Almajiri issue, noting that there are an estimated 15 million Almajiris in the country, with a population growth rate of around three per cent annually.

“If we do not solve this problem as a country, we are sitting on a time bomb,” he warned.

According to him, the programme focuses on hands-on technical skills rather than theory. Trainees will learn to repair mobile phones, laptops, televisions, radios, standing fans, and other electronic devices, as well as build inverter batteries using recycled electronic waste.

“We are not teaching theory. We are teaching practical skills you can use to earn a living,” Akano said, stressing that the programme will not interfere with the participants’ Quranic education.

“We are still going to allow you, within the period of learning. Your learning computer here is not stopping your Quranic education.

“You still have time within our space here. Whenever you want to go and pray, you can pray, then come back to class,” the CEO stressed.

He added that participants will also receive daily meals, water, T-shirts identifying them as technicians-in-training, and access to all necessary tools and equipment throughout the 90-day programme.

Akano said the initiative is part of a larger mission by New Horizons Nigeria, which has spent the past 21 years training about 100,000 Nigerians annually in IT and related skills.

He said the new programme aims to “take human genius off the streets and convert it into human capital, enabling these youths to contribute meaningfully to the economy.”

He added that equipping Almajiris with skills could add 15 million people to Nigeria’s workforce and potentially increase the country’s GDP by as much as $20 billion, stressing that productivity depends on practical skills and opportunity.

“Everything that can be taught can be learned. If someone can memorize the Quran cover to cover, there is nothing that cannot be done. What they lack is information, opportunity, and infrastructure, and we are providing all of that,” Akano said.

Akano also stressed that the initiative is designed to inspire other organizations and government agencies to replicate similar programmes across the country.

“This is not just about 21 children; it is about showing Nigeria what is possible when resources meet intention and planning.

“If we succeed in empowering these Almajiris, we demonstrate that the country can turn social challenges into economic opportunities. It’s a blueprint for Nigeria’s future,” he said, noting that the initiative combines social reform, technical education, and economic empowerment.

Also speaking, one of the trainees, Fatima Umar, appreciated the organisers and promised to maximise the opportunity.

“We’ll make you proud of us. We have nothing to say here but to thank and appreciate you. May Almighty Allah continue to guide and protect you,” Umar said.


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IMF Upgrades Nigeria’s 2026 Growth Projection to 4.4%

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International Monetary Fund has upgraded Nigeria’s 2026 economic growth projection to 4.4 per cent, reflecting improved macroeconomic stability and sustained reforms.

IMF Upgrades Nigeria’s 2026 Growth Projection to 4.4%

IMF

The January 2026 World Economic Outlook Update forecasts Nigeria’s growth trajectory at 4.1 per cent in 2024, 4.2 per cent in 2025, and 4.4 per cent in 2026—a 0.2 percentage point increase from the October 2025 estimate.

This aligns with sub-Saharan Africa’s projected 4.6 per cent expansion in 2026 and 2027, driven by regional stabilisation efforts.

Globally, the IMF anticipates 3.3 per cent growth amid resilient conditions tempered by trade policy shifts and technology investments. For Nigeria, declining energy prices—expected to fall seven per cent due to weak demand—pose risks, though OPEC+ coordination and China’s stockpiling provide support.

Despite the optimism, downside risks persist from Middle East and Ukraine tensions, protectionism, high debt, and fiscal deficits. The Fund recommends rebuilding fiscal buffers, ensuring central bank independence, and limiting temporary fiscal measures to maintain stability.

Nigeria’s success hinges on consistent reforms and resilience against domestic and global shocks, the IMF concluded.


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Nigeria’s Crude Output Falls to 1.486mbpd in November – OPEC

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Organisation of Petroleum Exporting Countries (OPEC) reports that Nigeria’s crude oil production, excluding condensate, dropped by 0.7 per cent to 1.486 million barrels per day (mbpd) in November 2025 from 1.496 mbpd in October.

Nigeria’s Crude Output Falls to 1.486mbpd in November – OPEC

OPEC

The figure, drawn from secondary sources in OPEC’s December 2025 Monthly Oil Market Report, fell short of Nigeria’s 1.5 mbpd quota. Direct communication data showed output at 1.436 mbpd, up from October’s 1.401 mbpd, but still below target.

Nigeria produces around 196,028 bpd of condensate, excluded from quota calculations per Nigerian Upstream Petroleum Regulatory Commission figures. Year-on-year, November’s output marked a slight gain over 1.417 mbpd in November 2024.

Expert Cites Insecurity, Governance Gaps

Petroleum economics expert Wumi Iledare described the quota miss as unsurprising, blaming persistent insecurity, an ageing oil basin lacking new finds, and unoffered hydrocarbon blocks. Governance shortcomings and policy uncertainty further erode investor confidence, he noted.

Selective implementation of the Petroleum Industry Act worsens the situation, with Nigeria needing a single authoritative leader for the sector rather than multiple proxies, Mr Iledare stressed. The country has struggled to consistently hit OPEC targets for years.


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