Identifying the Key Challenges in the Implementation of Artificial Intelligence in Procurement in Nigeria
TL;DR
A systematic review of recent literature identifies and categorises the key challenges hindering the successful implementation of AI in both public and private sector procurement in Nigeria, providing a coherent framework for policymakers and organisational leaders to develop targeted intervention strategies.
Abstract
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.