The integration of Artificial Intelligence (AI) into global procurement practices promises
unprecedented gains in efficiency, transparency, and cost reduction. However, developing
economies like Nigeria face unique, often compounded, obstacles to realising this potential.
This paper conducts a systematic review of recent literature to identify and categorise the key
challenges hindering the successful implementation of AI in both public and private sector
procurement in Nigeria. The review reveals that the barriers are multi-layered, spanning
foundational, infrastructure deficits (e.g., unreliable power supply and inadequate
broadband), data quality and governance issues (uncleaned, unstructured, and inaccessible
data), and organisational and human factors (resistance to change, fear of job displacement,
and a significant digital skills gap). Furthermore, the lack of a robust regulatory framework
specific to AI deployment in public contracting introduces significant ethical and
accountability risks, such as algorithmic bias. This study synthesises these challenges,
providing a coherent framework for policymakers and organisational leaders to develop
targeted intervention strategies, emphasising data foundational work, capacity building, and
urgent infrastructure investment to unlock AI's transformative value in Nigerian procurement.