By Nnaoke Ufere, PhD
Prepare for a revolution unlike any other in human history. Artificial Intelligence (AI) is poised to redefine our world, surpassing the impact of the steam engine, the automobile, the internet, and mobile devices combined. Its potential to transform every aspect of our lives is awe-inspiring, and Nigeria stands at the forefront of this groundbreaking movement.
In Nigeria, a wave of young innovators and entrepreneurs has emerged, fueled by the possibilities of AI. They possess a remarkable vision to confront Nigeria’s most complex challenges head-on and build AI-powered solutions that will shape the nation’s destiny.
As venture capitalists with a vested interest in Nigeria’s startup ecosystem, we find ourselves deeply impressed and genuinely excited by the remarkable progress made by these brilliant minds. Their unwavering dedication to serving national and commercial interests through their products and services is both admirable and inspiring.
It is imperative that we seize this moment. Nigerian governments have long recognized the need to foster innovation and cultivate a robust knowledge-based economy, one that can effectively steer the nation away from its overreliance on oil. The time has come for the government to go beyond rhetoric and take tangible action. It is time for them to lead the charge and invest in Nigeria’s homegrown entrepreneurs, serving as the catalyst for innovation and progress.
We appeal to the Nigerian government to make an immediate commitment to allocate funds specifically designated for supporting nascent AI ventures led by local entrepreneurs. While the Nigerian venture capital industry is promising, it lacks the necessary capital to fully harness the potential of AI technologies. Foreign VC firms seldom invest in early-stage ventures within emerging markets like Nigeria; they prefer to wait for validation, scalability, and growth.
In light of these circumstances, we propose that the government establishes an AI fund, operated by an experienced private VC firm, dedicated to investing in a select group of innovative founders with proven track records. These entrepreneurs have not only developed promising AI application concepts but also possess the determination and commitment to build capable teams and execute their visions successfully.
To unleash the full potential of AI in Nigeria, we strongly advocate for the creation of a dedicated $150 million early-stage venture fund that focuses on AI research and AI-powered applications. This initiative should also explore the utilization of open-sourced AI models like Meta’s LLaMA, which can significantly enhance the cost-efficiency of building AI applications.
The importance of government support in the form of AI venture capital cannot be overstated, as the process of collecting and analyzing vast amounts of textual and visual data from the internet to train AI models demands substantial resources, including specialized computer chips and significant financial investment. Unfortunately, these resources often lie beyond the means of local venture capitalists and companies.
It is important to emphasize that this is not a handout; rather, it is a strategic investment. As with any investor, the government should acquire equity positions and anticipate a respectable return on its investment. This approach ensures a mutually beneficial partnership between the government and the entrepreneurs, fostering a sustainable ecosystem of growth and innovation.
Many visionary Nigerian founders are currently building AI technology companies in sectors of utmost importance to the government, such as healthcare (e.g., diagnostic imaging, genomics, and drug design), finance, surveillance (e.g., facial recognition technology), national security, anti-corruption efforts, food security, and supply chain management. These sectors hold tremendous potential for improving government transparency, effectiveness, and citizen well-being. Furthermore, the success of these AI ventures will create high-paying jobs and attract foreign investment, as well as encourage skilled Nigerians in the diaspora to return home and contribute to their nation’s progress.
Furthermore, it is essential for the government to foster an environment that nurtures entrepreneurial growth. This can be achieved by removing excessive regulations that hinder business ventures, allowing entrepreneurs to thrive. The Securities and Exchange Commission (SEC) should streamline processes and create pathways for individual investors to easily support early-stage startups. Additionally, efforts should be made to attract foreign investors, leveraging their expertise and capital to fuel the growth of Nigerian startups.
The time has come for Nigeria to embrace the immense possibilities offered by AI. By investing in the nation’s brightest minds and their groundbreaking ideas, the government can pave the way for a prosperous and technologically advanced future. Let us join forces, fuel innovation, and build a Nigeria that is at the forefront of global AI revolution.
We are extremely optimistic about the abundant AI opportunities and investment potential in Nigeria.
