

Nigeria, Africa's most populous nation, presents significant opportunities for the adoption of artificial intelligence (AI) technologies due to its youthful population and growing digital ecosystem. However, despite substantial advancements in technology adoption and the increasing interest in AI applications, Nigeria faces critical challenges that limit the full realization of AI's potential to address socio-economic issues. This study examines the current state of AI adoption in Nigeria, identifies challenges hindering its development and application, and provide suggestions on how to enhance AI utilization in the country. The qualitative research method was used for this study. The study reviewed existing literature to explore the current state of AI adoption and the challenges in the development and application of AI in Nigeria. The papers were analyzed in review context, and keywords were focused on the title and research objectives. Findings reveal emerging adoption of AI technologies across diverse sectors such as education, libraries, digital marketing, banking, agriculture, and construction. However, challenges such as inadequate infrastructure, limited funding, shortage of skilled AI professionals, data scarcity, and ethical concerns significantly impede the successful implementation of AI. To foster AI adoption in Nigeria, the study suggests investments in digital infrastructure, funding, and workforce development; improved data governance; and the establishment of clear regulatory frameworks. Addressing these challenges is crucial to harnessing AI's potential for sustainable economic growth, enhanced public services, and improved quality of life in Nigeria.