The Role of Artificial Intelligence in Investment Management in Nigeria

Abstract

The slow adoption of artificial intelligence (AI) in Nigeria’s investment management sector continues to limit efficiency and data-driven decision-making. This study examined the role of AI in investment management in Nigeria, focusing on how ICT adoption, high technology intensity, and research and development (R&D) capacity influence its application. The study employed a quantitative research design using secondary data from the World Bank and Central Bank of Nigeria covering the period 2015–2024. Descriptive statistics, correlation analysis, diagnostic tests, and multiple regression analysis were conducted using STATA 26 to assess the relationships among the variables. The regression results revealed that ICT adoption (β = 0.328, p = 0.001), high technology intensity (β = 0.294, p = 0.002), and R&D capacity (β = 0.217, p = 0.011) all had positive and significant effects on the application of AI in investment management, with an overall R² value of 0.712, indicating strong explanatory power. The study concluded that enhanced ICT infrastructure, technological advancement, and R&D investments significantly improve the adoption and effectiveness of AI in Nigeria’s investment management sector. It recommended that financial institutions strengthen their digital infrastructure, embrace emerging technologies, and increase funding for innovation to achieve sustainable investment performance and competitiveness.