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Nigeria’s Innovation Flywheel: Turning Early AI Uptake into Economic Acceleration

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By: Deen Yusuf, Managing Director, Microsoft Nigeria

Nigeria has never struggled with ingenuity. It is a place where innovation grows from necessity, and where developers, entrepreneurs, and problem solvers consistently push past limitations to build what does not yet exist.

Nigeria’s innovation flywheel: Turning early AI uptake into economic acceleration

Deen Yusuf, Managing Director, Microsoft Nigeria

But in the era of artificial intelligence, ingenuity alone is no longer enough. The nations that will lead are those that not only innovate, but also ensure AI reaches workers at every level of the economy, because innovation without diffusion is simply potential left on the shelf.

Yet research shows this diffusion is far from guaranteed. While global generative AI usage continues to rise, the adoption gap between the Global North and Global South is widening at almost twice the rate.

Even the United States, despite leading in frontier AI, has fallen behind smaller, highly digitized economies in workforce adoption.

It’s clear that access constraints, not a lack of creativity or ambition, pose the greatest threat to equitable AI progress. For Africa, and for Nigeria in particular, this risk cannot be ignored.

The barriers slowing Nigeria’s AI acceleration

Microsoft’s Global AI Adoption in 2025: A Widening Digital Divide report shows that though Nigeria’s appetite for innovation remains strong, the underlying systems required to translate that energy into mainstream adoption are underdeveloped. While startups, government institutions, researchers, and investors are actively exploring AI applications across multiple sectors, national adoption has risen only marginally, up just 0.6 percentage points, from 8.7 percent in the first half of 2025 to 9.3 percent in the second half of the year.

Access remains the most immediate constraint. Connectivity gaps, inconsistent speeds, and high data costs limit the everyday use of AI tools. With median mobile speeds of 46.78 Mbps and fixed broadband at 27.54 Mbps, Nigeria ranks below the global benchmarks needed for reliable, cloud-based AI services.

Skills shortages create a second barrier. While momentum is building, Nigeria still requires the specialized talent required to build, integrate, and manage advanced AI systems. Talent emigration further widens the gap.

Language and localization gaps compound the challenge. Most large language models leverage English-language training data, excluding many Nigerian languages and limiting the cultural relevance of AI tools in a country with rich linguistic diversity.

Finally, fragmented regulation slows progress. Overlapping mandates across agencies create uncertainty around governance, privacy, and security, fueling public hesitation and reinforcing fears around job displacement.

Learning from global AI leaders

The fastest-accelerating countries, including the UAE, Singapore, Norway, Ireland, France and Spain, share a clear blueprint: early investment in digital infrastructure, robust skilling ecosystems, and decisive government leadership.

The impact of this approach is evident in the UAE, where the AI Diffusion Report shows national adoption rising from 59.4 percent in the first half of 2025 to 64 percent in the latter half, a 4.6-percentage-point increase.

The Emirates’ AI advantage didn’t materialize overnight. It was built deliberately and with years of foresight. In October 2017, five full years before ChatGPT captured global attention, the UAE appointed the world’s first Minister of State for Artificial Intelligence. That same year, the country launched a national AI strategy covering nine priority sectors and establishing governance frameworks.

This sequencing proved consequential. When the current generative AI wave arrived, UAE residents encountered a familiar technology, one their government had been deploying in public services and discussing in national conversations for half a decade. The foundation was already in place.

Regulatory pragmatism has been a key driver of the UAE’s rise as a global AI leader. Early on, the country established sandbox environments that allowed controlled experimentation and learning. It then introduced targeted visa programs to attract and retain AI talent, ensuring the ecosystem could scale.

This was reinforced by principle-based guidelines that offered clear direction without stifling innovation or creating compliance paralysis.

Over time, this approach built trust in the most durable way possible: through proven outcomes and AI systems that deliver value in everyday transactions.

For Nigeria, a similar path begins with deliberate government action through initiatives such as 3MTT and Project Bridge.

These programs lay the groundwork for strengthening talent and infrastructure, expanding access and connectivity, and accelerating digitization across ministries, departments and agencies.

Professional bodies also have a critical role to play. Through training, workshops, and sector-specific guidance, they can demystify AI, correct misconceptions, and help workers understand its benefits.

Early adopters already show what is possible. Through its advanced analytics-driven marketing platform, Terragon Group is helping its clients achieve returns of up to 900 percent, while financial services group Access Holdings has significantly accelerated product development cycles using AI-driven tools.

Local language relevance is equally essential. South Korea’s surge in AI adoption, for example, rising from 25th to 18th in the global rankings, only accelerated once AI models became highly effective in Korean. Nigeria can follow this path by investing in indigenous language AI.

Initiatives such as Awarri and Paza, a recent collaboration with Microsoft Research, are starting to show how culturally rooted AI tools can expand access and inclusion.

Nigeria stands at a pivotal moment. The ingenuity is here; the ambition is here, and now the pathway is clear.

With focused investment in infrastructure, talent, localization, and forward-leaning governance, the country can move from early promise to broad-based AI participation, ensuring AI becomes a driver of inclusive growth and opportunity for every Nigerian.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Firm Reveals a 37% Increase in Malicious Packages Compromising Software Supply Chains

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According to Kaspersky telemetry, almost 19,500 malicious packages were found in open-source projects by the end of 2025, representing a 37% increase compared to the end of 2024.

Modern software development is inseparable from open-source components. However, open-source software may contain intentionally hidden threats which can leave the products that use malicious packages vulnerable to manipulation, including supply chain attacks. According to a new Kaspersky global study, supply chain attacks have emerged as the most common cyberthreat facing businesses over the past year.

Kaspersky reminds about high‑profile supply chain attacks that have emerged recently: In April 2026, the official website for CPU-Z and HWMonitor, free tools used by hardware enthusiasts, IT administrators and system builders worldwide to monitor hardware performance was compromised, silently replacing legitimate software downloads with malware-laced installers.

Analysis from Kaspersky GReAT showed that the compromise window was approximately 19 hours. Kaspersky telemetry detected that more than 150 victims across multiple countries faced this attack. The majority were individual users, which is consistent with the consumer-facing nature of the compromised software. Affected organisations spanned retail, manufacturing, consulting, telecommunications and agriculture.

  • In March 2026, Axios, one of the most widely used JavaScript HTTP clients, was compromised. The attackers hijacked a maintainer’s account and published poisoned versions of the package (1.14.1 and 0.30.4). The malicious releases contained no harmful code in Axios itself but introduced a phantom dependency that deployed a cross-platform RAT, contacted a C&C server, and then erased traces of itself for macOS, Windows and Linux. Both versions were removed within hours, and the dependency was quickly put under a security hold. Kaspersky GReAT confirmed that the attack was not standalone – it shared tactics, techniques and procedures with Bluenoroff’s GhostCall and GhostHire campaigns, presented at the Security Analyst Summit in 2025.
  • In February 2026, the developers of Notepad++, a widely used open-source text and code editor, disclosed that their infrastructure had been compromised due to a hosting provider incident. Kaspersky GReAT researchers discovered that attackers behind the Notepad++ supply chain compromise had used at least three distinct infection chains and targeted a government organisation in the Philippines, a financial institution in El Salvador, an IT service provider in Vietnam and individuals across several countries.

 “According to our survey, 31% of enterprise businesses have been impacted by a supply chain attack in the past 12 months. Nevertheless, the security level of open‑source projects is not necessarily lower than that of proprietary-vendor solutions. In some cases, an active open‑source community can quickly discover and remediate vulnerabilities, whereas proprietary systems often rely on internal teams for audits.

The open‑source community strives to monitor emerging risks, cybersecurity specialists conduct researches to find vulnerabilities and malicious code in open‑source software, promptly notifying their users and the community. Completely eliminating the potential risks is impossible, but they can be minimised also with the help of security solutions and automated code‑analysis tools,” comments Dmitry Galov, Head of Kaspersky GReAT Russia and CIS.


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Data Privacy Ignorance Threatens National Security –  DKIPPI 

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Data Knowledge and Information Privacy Protection Initiative (DKIPPI) has warned that widespread ignorance of data privacy practices is exposing Nigeria to serious national security and economic risks amid a rise in ransomware attacks.

Data Privacy Ignorance Threatens National Security -  DKIPPI 

Tokunbo Smith, president of DKIPPI, warned on Tuesday in Lagos, that  the increasing frequency of ransomware incidents underscores the dangers of weak data protection systems across organisations and institutions.

He described ransomware attacks as a growing threat in which hackers infiltrate systems, demand payments and threaten to leak sensitive data.

Mr Smith said, “The cost of ignorance in data privacy is not just what you lose. It is what you expose. Data privacy has evolved beyond a technical concern to a critical governance and national development issue requiring urgent attention. Ransomware is no longer just cybercrime; it is economic warfare and a governance issue.”

Mr Smith urged both public and private sector leaders to adopt proactive and comprehensive data protection frameworks to safeguard sensitive information and strengthen institutional resilience.

He also called on government at all levels to go beyond punitive responses and implement stronger regulations, enforcement mechanisms, and national cyber resilience strategies.

According to him, DKIPPI will soon release a policy advocacy paper outlining the key risks associated with poor data protection practices.

He said the paper would highlight financial losses, institutional inefficiencies, and threats to national security, while recommending urgent reforms to procurement processes, compliance systems, and governance structures.

Mr Smith added that addressing data privacy gaps was critical to protecting Nigeria’s digital economy and restoring trust in its institutions.

 

 


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Angst as FG Drops $32.8m Fine on Meta for Data Breach

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Decision to cancel the $32.8 million fine previously imposed on Meta for alleged data privacy violations was taken as far back as October 30, 2025.

Angst as FG Drops $32.8m Fine on Meta for Data Breach

The development has raised concerns over the country’s approach to data protection enforcement and regulatory transparency.

This followed a confidential, out-of-court settlement singed by Nigerian Data Protection Commission (NDPC) with Meta, effectively waiving the fine imposed earlier that year.

This deal, sanctioned by a Federal High Court, resolved disputes over behavioural advertising and user data transfers without Meta paying the penalty.

Recall that the NDPC claimed that it launched investigation in September 2023 that examined Meta’s handling of personal data from more than 60 million Nigerian users.

The NDPC had accused Meta of several breaches, including the absence of explicit consent for behavioural advertising, unauthorised cross-border data transfers, the collection of data from non-users, and the deployment of algorithms that could expose users to financial and health risks.

At the time, the regulator described the penalty as part of efforts to strengthen digital rights protections in Africa’s most populous country, aligning Nigeria with global enforcement trends in the United States, United Kingdom, and European Union, where Meta and other major technology firms have faced multibillion-dollar fines for similar violations.

However, documents from a subsequent settlement indicate that Nigeria reversed its position in October 2025.

Under the agreement, Meta was absolved of the $32.8 million penalty and required only to cover legal fees incurred by the government during court proceedings challenging the NDPC’s final orders.

The settlement was signed on 30 October 2025 and later validated by the Federal High Court in Abuja on 3 November 2025.

Despite this judicial confirmation, the terms of the agreement were not made public at the time, and only recently emerged through disclosed documentation.

The development has triggered questions about transparency in regulatory enforcement, particularly given the scale of the initial allegations and the number of affected users.

Iliya-Ezekiel Ndatse, data protection lawyer, said the outcome weakens regulatory deterrence.

“Removing penalties after such findings reduces the effectiveness of enforcement actions and weakens the credibility of compliance obligations,” he noted.

The case has also drawn comparisons with Nigeria’s previous dispute involving Twitter, now rebranded as X, which was banned in 2021 before the two parties reached a negotiated resolution.

 


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