The announcement of a ₦100 million AI fund by the Federal Government, announced by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has ignited varying reactions across Nigeria’s tech community, according to this report by techeconomy.ng.
While the initiative, launched in collaboration with Google, was designed to support AI startups, many industry experts have said the fund lacks the capacity to make a significant impact in the sector.
Several tech professionals took to X (formerly Twitter) in response to the announcement, focusing on the size of the fund, which they argue is grossly inadequate for AI development.
A recurring objection is that ₦100 million, equivalent to around $61,000, is insufficient for AI research, particularly when considering the high cost of infrastructure required to develop competitive AI technologies.
A number of commentators on Tijani’s X comment section pointed out that Google itself offers far more noteworthy support to individual startups through its various accelerator programs.
Under the Google for Startups Accelerator Africa initiative, for example, selected startups receive as much as $350,000 in cloud credits alone. Comparing this to the government’s AI fund, which aims to spread approximately $60,000 across multiple startups, some have described the initiative as an underwhelming gesture.
CEO of an edtech startup, Alex Onyia, wrote: “₦100 million can’t even buy the hardware needed for serious AI development. In today’s economy, this is barely enough to cover the salary of an AI engineer for a year. If we want to push forward in this field, we need to think much bigger.”
Other tech insiders, like Jerry U., also pointed to the disparity between the Nigerian fund and international standards. He shared his personal experience of receiving a $200,000 grant from Google for his startup, contrasting this with what he called the “celebration” of a fund that offers less than a third of that amount. “We’re throwing a party for $60,000 while serious AI projects require millions just to get off the ground,” he complained.
Beyond funding issues, several commenters, including Citizen Olu, noted the huge hardware and computational requirements that accompany modern AI development. They noted that cutting-edge AI models depend on advanced graphics processing units (GPUs) and other powerful hardware from companies like NVIDIA and CEREBRAS.
The costs of acquiring and maintaining such infrastructure, alongside the need for skilled AI professionals, are seen as prohibitive for any serious AI initiative that only has access to ₦100 million.
At the advent of the tech ecosystem in Nigeria decades back, the country, through public-Private Partnerships invested heavily in infrastructure, tech incubation hubs and skills development programmes that saw the ecosystem bloom.
Today, as the country focuses on AI, expectations are that the same approach should be adopted, but in a more aggressive speed due to the expediency and economic challenges facing the country.
The general opinion from the tech community, according to the tech economy.ng report, was that while the fund is a step in the right direction, it is not nearly enough to drive meaningful progress in AI innovation in Nigeria. Many believe that to truly compete on the global stage, Nigeria must adopt a better vision backed by larger investments.
The Ministry of Communications, Innovation and Digital Economy had highlighted the broader benefits of the initiative, which includes access to Google’s AI tools, mentorship, and a global network that could provide valuable resources for Nigerian startups. However, whether these resources can compensate for the lack of direct financial support is not yet known.
Emerging markets like Nigeria are facing huge challenges in entering the AI space, where the high costs of research and development create limitations to participation. Without addressing the financial and infrastructural gaps, Nigeria may struggle to fully leverage the prospects of AI technologies, despite the government’s good intentions.
Some stakeholders have also opined that the Ministry needs to do more in carrying them along in the journey to develop and formulate policies on AI in the country.
