Artificial intelligence adoption among formal businesses in Nigeria has risen sharply over the past three years, placing the country on par with the United States in the proportion of firms using the technology, according to the World Bank’s World Development Report 2026.
The report, titled World Development Report 2026: The Promise of Artificial Intelligence, identifies Nigeria and Kenya as two African economies that have experienced rapid growth in AI adoption among businesses as generative AI tools become more affordable and easier to deploy.
Drawing on findings from the World Bank Enterprise Survey on AI Adoption, the report assessed AI usage among formal businesses with at least five employees across India, Jordan, Kenya, Mexico, Nigeria, Thailand and the United States.
According to the report, AI adoption among Nigerian formal firms increased from less than 5% in 2022 to approximately 40% in 2025, bringing the country’s adoption rate in line with that of the United States. Kenya recorded a similar increase over the same period.
“Data from the World Bank Enterprise Survey on AI Adoption show that between 2023 and 2025, several developing economies experienced a rapid surge in AI adoption among formal firms with at least five employees,” the report stated.
“In Kenya and Nigeria, for example, less than 5 percent of such firms used AI in 2022, but by 2025, this figure had risen to about 40 percent, matching adoption rates in the United States.”
The World Bank said the findings demonstrate that AI adoption is no longer confined to highly digitised businesses.
One of the report’s notable findings is that 21% of Nigerian firms that still rely primarily on handwritten records for business operations have already adopted AI in some form, with many using chatbot applications accessible through mobile phones.
According to the report, the trend suggests that businesses do not require sophisticated digital infrastructure before beginning to benefit from artificial intelligence.
However, the World Bank cautioned that matching the United States in adoption rates does not necessarily mean Nigerian firms are deploying AI with the same depth or sophistication.
The report noted that while businesses in developing economies are rapidly embracing AI, significant differences remain in the complexity of applications, supporting infrastructure and the extent to which the technology is integrated into business operations.
