KEY POINTS

• Nigerian AI startups are building localized tech solutions for agriculture, healthcare, and document verification, despite competition from global tech giants.

• Concerns are rising over foreign dominance of Africa’s digital space, prompting policy actions such as Nigeria’s forthcoming National AI Strategy.

• Despite funding and infrastructure challenges, Nigerian entrepreneurs are increasingly turning homegrown ideas into scalable technologies that serve real community needs.

In the bustling streets of Yaba, Lagos’ self-proclaimed “Silicon Lagoon,” a quiet revolution is taking place—powered not by foreign tech giants, but by a wave of determined Nigerian entrepreneurs building homegrown Artificial Intelligence, AI, solutions tailored to local problems.

Among them is 27-year-old Chidi Osondu, co-founder of NeuraFarm, an AI-powered agritech startup that helps smallholder farmers detect crop diseases using low-data mobile cameras and voice-assisted diagnostics in Yoruba, Hausa, and Igbo.

“Most of the AI tools out there are built for Silicon Valley, not Sokoto or Aba,” Osondu told Nigerian Digital Weekly. “We wanted to create something that understands how Nigerian farmers think and operate.”

The startup, launched in 2023, has already attracted $1.3 million in seed funding from a mix of local angel investors and development institutions. It now operates in six states across Nigeria, offering solutions that combine drone surveillance, mobile diagnostics, and offline AI processing to deal with rural connectivity issues.

Nigerian innovation amid global competition

The surge in local AI development comes at a time when foreign platforms like Google, Microsoft, and OpenAI are increasingly turning their attention to Africa.

Earlier this year, Microsoft announced the expansion of its African Development Center in Lagos, while Google launched AI learning hubs in Kenya and Nigeria.

But some Nigerian developers worry that foreign investments, while beneficial, could also stifle local innovation if not balanced with indigenous support.

“We are grateful for the training opportunities these global companies bring, but we must be careful not to become mere consumers of foreign technologies,” warned Dr. Amina Balogun, Director of Technology Policy at the University of Ibadan. “Our regulatory frameworks, funding channels, and academic curricula must actively promote indigenous innovation.”

In response, the National Information Technology Development Agency (NITDA) is currently drafting Nigeria’s National AI Strategy, set to be released by Q3 2025. The document is expected to outline data privacy standards, ethical frameworks, and funding guidelines to support the local tech ecosystem.

“We cannot allow foreign APIs to dominate the local AI ecosystem,” said NITDA Director-General Kashifu Inuwa during a recent policy roundtable in Abuja. “We must own our data, develop our models, and set our ethical boundaries.”

AI for real-world Nigerian problems

While foreign AI platforms focus on global applications like coding assistants and virtual chatbots, many Nigerian startups are focusing on urgent, real-world challenges.

In Abuja, DocuScan NG is developing an AI tool that detects forged documents, fake university degrees, and fraudulent business registrations—issues that plague both public and private sectors in Nigeria. The system, which cross-references national databases and metadata patterns, is being tested with the Corporate Affairs Commission and select banks.

Similarly, E-Health Assist, a Lagos-based healthtech company, is using machine learning to predict disease outbreaks in underserved communities by analyzing mobile health reports and environmental data. It recently received a grant from the Bill & Melinda Gates Foundation to scale its solution nationwide.

Despite these promising strides, challenges remain. Most startups face difficulty accessing high-quality data, computing infrastructure, and long-term funding. Broadband limitations in rural areas further complicate the deployment of AI-powered solutions that depend on real-time processing.

However, a growing network of incubators, like Co-Creation Hub, and government-backed innovation funds are working to bridge these gaps. In 2024 alone, over 300 Nigerian startups were accepted into global accelerators, including Y Combinator and Techstars.

“We are just getting started,” said Osondu. “But one thing is clear—Nigeria’s tech future will be built not just with global help, but by Nigerians who understand what this country truly needs.”

As the global AI race accelerates, Nigeria’s innovators are finding ways to ensure they are not left behind—or worse, locked out.