Nigeria’s artificial intelligence industry is really taking off, with more than 120 active startups now operating across different sectors. The industry is growing fast, and experts warn that poor funding and weak infrastructure could slow down the progress of Nigeria’s AI industry.
This is what the AI Outlook 2026 report says. The report was released by AI CoLab Africa and AI in Nigeria. They worked with industry experts to make the report. The report says Nigeria’s artificial intelligence startups are working in areas such as health technology, financial technology, agriculture and language technology. They talked to 504 professionals and many leaders in the ecosystem.
The Federal Government of Nigeria has taken steps to support intelligence development. They launched the Nigeria National AI Strategy in August 2024. Then, in February 2025, they created the Nigerian National AI Trust. The Director-General of the National Information Technology Development Agency, Kashifu Inuwa Abdullahi, said regulation should help Nigeria’s artificial intelligence industry grow responsibly. He does not want regulation to slow down the industry.
Kashifu Inuwa Abdullahi explained that proper rules will protect rights. The rules will also ensure transparency and accountability in Nigeria’s AI industry. The report shows that there are now 122 intelligence startups in Nigeria. Most of them are based in Lagos. Some are in Abuja and other states. Nigeria’s artificial intelligence industry is growing.
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Some of the leading startups include Awarri, which is building Nigeria’s multilingual large language model. The model supports five Nigerian languages. Then there is CDIAL AI. CDIAL AI focuses on language technology for languages. Ubenwa Health uses intelligence to analyse babies’ cries. They want to detect neurological problems. BetaLife Health uses intelligence to improve blood donation supply systems. Terra Industries is an Abuja-based company.
They build intelligence-powered drones and export them to eight African countries. These startups are doing work in Nigeria’s artificial intelligence industry.Despite these successes, funding remains a problem for Nigeria’s artificial intelligence industry.
The report says that 79 per cent of respondents said lack of capital is a challenge, and 40 per cent of startups rely on savings. 20 per cent received international funding, 16 per cent have secured venture capital, and 6 per cent received government grants. Experts say this shows that Nigeria’s artificial intelligence sector is still financially weak. The sector needs local investment and government support. Experts want to see Nigeria’s artificial intelligence industry grow stronger.
