Why Nigeria Must Invest In University Research To Unlock Innovation, National Development, Global Competitiveness
By Oyewole Sarumi
Across the world, nations that lead in innovation, economic development, and technological advancements are those that have made strategic, long-term investments in research and development (R&D)—particularly through their universities. One need look no further than the United States, Germany, China, and South Korea to see how government-funded research is a driving force behind industrial growth, global competitiveness, and improved quality of life.
In Nigeria, the case for government-sponsored research is more urgent than ever. As Africa’s largest economy and most populous nation, Nigeria faces complex challenges—unemployment, insecurity, public health crises, food insecurity, underdeveloped industries, and climate change—that require innovative, homegrown solutions. Yet, Nigeria’s investment in R&D remains woefully inadequate. According to UNESCO data, Nigeria spends less than 0.2% of its GDP on R&D, far below the African Union’s target of 1% and the global average of 1.7%. This for me is a missed opportunity.
For Nigeria to diversify its economy, drive sustainable development, and compete in the AI-driven global economy of the 21st century, the Federal Government must begin sponsoring robust, focused research in key institutions across the country—from federal universities to research institutes and specialized centers of excellence.
This article will examine global best practices, highlight Nigeria’s current gaps, and outline a path forward for government-led research investment to catalyze national development.
The U.S. Model: Government-Funded Research as an Engine of Innovation
One of the clearest examples of how government funding can power innovation comes from the United States. In Fiscal Year 2023, the U.S. federal government allocated nearly $60 billion to R&D at universities—a staggering figure that fuels research across fields such as AI, quantum computing, biotechnology, clean energy, defense technologies, healthcare, and space exploration. The Harvard University imbroglio with the Trump administration on reduction of admissions of foreign students emanates from the fact that US government pumped a lot of fund in to the institution.
Universities like Johns Hopkins University, University of Michigan, and MIT are among the top recipients of these funds, conducting research that not only solves critical societal problems but also drives economic growth through technology transfer, startup creation, patents, and industry partnerships.
Much of today’s digital economy, including theican internet itself, GPS, mRNA vaccine technology, and AI tools, have their roots in government-funded university research in the U.S.
According to a Brookings Institution report, for every $1 invested in university R&D, the return in economic output can be as high as $10-$15 through innovation-driven entrepreneurship and job creation.
Africa’s Underinvestment in Research: The Missed Opportunity
In contrast, many African countries—Nigeria included—have not prioritized R&D spending. In 2006, the Afr Union set an aspirational target for member states to allocate at least 1% of GDP to R&D.
As of 2023, Africa’s average is only 0.45%. Nigeria’s spending is even lower, at an estimated 0.13% to 0.2%, despite its vast talent pool and urgent development needs.
This chronic underinvestment has led to multiple negative outcomes:
– Low Research Output: Nigerian universities produce fewer patents, innovations, and high-impact publications compared to global peers.
– Brain Drain: Talented Nigerian researchers often migrate to countries where research funding is more abundant (e.g., U.S., UK, Canada, Germany).
– Dependency on Donor-Driven Research: Much of Nigeria’s academic research is funded by foreign agencies (DFID, USAID, Gates Foundation), which often set research agendas not fully aligned with local priorities.
– Limited Innovation Capacity: Nigeria continues to import technologies it could develop locally, missing opportunities for job creation and industrial diversification.
Why the Nigerian Government Must Act Now
Nigeria’s future as an economic leader in Africa and a global player depends on building indigenous knowledge and innovation capacity. No country can “import” innovation; it must be nurtured through domestic research ecosystems.
Here’s why FGN must make strategic investments in university research: “Solve Local Problems with Homegrown Solutions
“Nigeria faces unique challenges—climate-resilient agriculture, renewable energy for off-grid communities, affordable healthcare innovations, security technologies, urbanization, and more. Foreign research agendas cannot adequately address these realities.
“Government-sponsored research, shaped around Nigeria’s National Development Plan (2021-2025) and Nigeria Agenda 2050, would empower universities to focus on solutions relevant to Nigeria’s needs.
“Build an Innovation-Driven Economy
Nigeria’s reliance on crude oil exports is unsustainable. To diversify into knowledge-based industries—AI, biotech, renewable energy, advanced manufacturing— government must foster innovation at universities, just as the U.S., China, and India have done.
“Sectors like agritech, fintech, healthtech, green energy, and smart infrastructure offer massive potential, but require government-backed R&D pipelines to mature.
“Retain and Attract Talented Researchers
Nigeria has some of Africa’s brightest minds in AI, biomedical sciences, engineering, and social sciences. Yet, due to lack of funding and poor research environments, many leave for better opportunities abroad.
“FGN-sponsored Centers of Research Excellence with competitive grants and modern infrastructure can reverse brain drain and attract diaspora talent back home.”
“Build Public-Private Innovation Ecosystems: Universities funded by government research grants can become hubs for public-private partnerships, collaborating with industry to commercialize innovations and create startups.
“This is how Silicon Valley emerged—from Stanford University’s partnership with U.S. federal research programs and private industry.”
Global Trends: AI, Deep Tech, and Nigeria’s Urgency
The AI revolution is accelerating. The World Economic Forum projects that AI will add $15.7 trillion to the global economy by 2030.
Countries that lead in AI research and develop sovereign capabilities will dominate future industries, military technologies, healthcare, and finance.
In 2024, the U.S. launched the National AI Research Resource Task Force, with billions committed to AI research hubs across leading universities.
China is investing over ¥1 trillion (approx. $140 billion) in AI, quantum computing, and next-gen technologies through university-led R&D programs.
Nigeria cannot afford to be a passive consumer of foreign AI products. Without indigenous AI research, we risk technological dependency and digital colonialism.
The FGN should fund AI Research Institutes within UI, UNILAG, ABU Zaria, UNN, Covenant University, FUTA, and others, fostering local expertise in Natural language processing for African languages, AI-powered agriculture, Smart health diagnostics, Cybersecurity, Climate modeling and resilience
What Nigeria Must Do: A Roadmap for Government-Backed Research Investment
“To align with best global practices, the FGN should pursue the following: Allocate 1% of GDP to R&D by 2030. This commitment should be codified in national policy, with clear targets and an annual reporting framework.
“Create a National Research Fund
A well-governed National Research & Innovation Fund should competitively fund university-led research aligned with Nigeria’s development priorities.
Grants should support basic science, applied research, and AI/DeepTech, with built-in incentives for industry partnerships and commercialization.
“Modernize Research Infrastructure
Invest in world-class laboratories, supercomputing centers, AI and robotics labs, and technology parks linked to universities.
“Strengthen Research Governance
Ensure research funding is transparent, merit-based, and shielded from political interference. Adopt global peer-review best practices.
“Build National Research Networks
Encourage collaboration across universities, government agencies, and private sector R&D. Facilitate partnerships with African and global research networks (e.g., African Research Universities Alliance).
The Economic Payoff: Why It’s Worth It
Numerous studies confirm the economic multiplier effect of government-funded research: In the U.S., every $1 of federal R&D yields $10-$15 in GDP growth; Israel, which spends over 4% of GDP on R&D, became a global tech powerhouse, earning billions in exports of AI, cybersecurity, and medtech innovations; South Korea’s transformation into a global electronics leader was driven by state-backed university research.
For Nigeria, strategic research investment can generate: Jobs in high-value sectors; Technology exports to global markets; Industrial upgrading; Youth entrepreneurship and startups; and enhanced global competitiveness.
Building Nigeria’s Future through Research Investment
The lesson from global innovation leaders is clear: sustained government investment in university research is the foundation of modern prosperity.
For Nigeria to fulfill its potential as Africa’s innovation leader, the FGN must prioritize research funding—not as an afterthought, but as a core pillar of national development strategy.
By empowering Nigerian universities to solve local challenges, advance AI and emerging technologies, and drive knowledge-based industries, we can build a self-reliant, globally competitive economy—one that creates prosperity for millions of Nigerians.
The time to act is now.
Prof. Sarumi is the Chief Strategic Officer, LMS DT Consulting, Faculty, Prowess University, US, and ICLED Business School, and writes from Lagos, Nigeria Tel. 234 803 304 1421, Email: [email protected].
