How Anambra State is Using AI to Tackle Government Fraud

Anambra State, one of Nigeria’s wealthiest regions, is taking a bold step to tackle deep-rooted problems like budget inflation, payroll fraud, and inefficiencies in public services using cutting-edge artificial intelligence (AI). The driving force behind this tech-forward initiative is the Anambra State ICT Agency, established in 2019 with the mission of transforming governance through digital innovation.

A key component of this transformation is the SmartGov Suite, an AI-powered platform created by a team of local tech experts. Led by Nonso Okoye, the Governor’s Special Assistant on Cybersecurity, SmartGov is set to revolutionize the way the state manages public services and interacts with citizens. This tool is being rolled out across all state ministries, starting with the local governments—the heart of public service delivery.

"We began with the local governments because they are where most citizen interactions happen," Okoye explained during a conversation in his freshly opened office at the new Anambra State Government House. The agency had just begun operations in the building in June 2025.

Tackling Outdated Systems with Smart AI

For decades, government processes in Anambra—and much of Nigeria—have been plagued by outdated, manual systems. In fact, less than 10% of Nigerian government functions are digitized, according to Kashifu Inuwa, Director-General of the National Information Technology Development Agency (NITDA). In contrast, Anambra is taking a proactive approach, focusing on its 21 local governments that play a pivotal role in delivering essential services to residents.

One of the early successes of SmartGov has been its ability to detect inefficiencies in budgeting. Okoye shared an example where the AI flagged a massive, unspent ₦2.1 billion in the education sector. The reason? There was no record of the funds being disbursed. Such issues are easy to overlook in a manual system, but the AI brings much-needed transparency and accountability.

AI as a Public Service Assistant

SmartGov is more than just a tool for detecting financial discrepancies. It acts as an intelligent assistant for public servants, civil servants, and even ordinary citizens. Whether it's information about government payments, permits, or regulations, the AI instantly provides relevant details from various state systems. It also cross-references data across ministries to spot redundancies, monitor spending, and track vendor compliance.

The AI’s most immediate impact is seen in payroll verification. By analyzing unique identifiers such as National Identity Numbers (NINs) and Bank Verification Numbers (BVNs), the system can detect fraudulent activity like ghost workers. Okoye revealed one shocking case: an account that was linked to seven different employees—something that would be nearly impossible to catch through traditional manual processes.

But it doesn’t stop there. SmartGov also helps prevent procurement fraud. The system flagged a vendor who was awarded five contracts in just three weeks—a glaring red flag for abuse. With this level of insight, it’s becoming much harder for fraudulent practices to slip through the cracks.

Shaping the Future of Tech Governance in Nigeria

Anambra’s initiative isn’t just about addressing current inefficiencies. It's a forward-thinking investment in the future of AI and digital governance in Nigeria. By experimenting with and adopting AI at the state level, Anambra is positioning itself as a leader in digital transformation. As Okoye puts it, "If we don’t lead the way, we’ll end up relying on imported systems that may not always align with our local needs."

The potential of AI in government is enormous. States that invest in AI now are better positioned to develop local expertise, cultivate talent, and drive broader digital changes. Anambra’s SmartGov Suite, for instance, is being designed to eventually consolidate data from multiple sectors like health, education, and civic services into one unified platform. Okoye emphasized, “For too long, government departments have operated in silos. SmartGov is tearing down those walls.”

A National AI Strategy and Regulatory Hurdles

While Anambra’s AI push is impressive, the lack of a clear regulatory framework is one of the biggest challenges facing the broader adoption of AI in Nigerian governance. Bosun Tijani, the country’s Minister of Communications, Innovation, and Digital Economy, is spearheading efforts to develop Nigeria’s first National Artificial Intelligence Strategy. The strategy focuses on developing local talent, supporting AI research, and fostering innovation through startups, including the creation of Africa’s first multilingual and multimodal AI models.

But concerns remain. Different states may soon create conflicting laws, with some fully embracing AI while others may impose bans. To prevent this fragmentation, Okoye is calling for a national task force to develop a uniform AI framework that addresses potential risks, ethical concerns, and training needs. Without such a framework, AI adoption could become a free-for-all, leading to inconsistent outcomes across the country.

The risks are already visible. Poorly trained AI models can produce skewed results, particularly when fed biased or outdated data. In sensitive areas like healthcare or justice, such inaccuracies could have serious consequences. That’s why Anambra is taking steps to craft its own AI regulatory framework, which will be submitted to the state assembly for consideration. Governor Soludo has tasked a team with developing the law, which will ensure that AI tools like SmartGov are used responsibly.

Looking Ahead: A Future Powered by AI

For Anambra, the journey with AI is just beginning. The state’s long-term vision includes expanding the capabilities of SmartGov to allow citizens to interact directly with government virtual agents. In the future, the platform could even feature an AI-assisted governor that answers queries through text, voice, or video, further bridging the gap between the government and the people.

Anambra’s bold experiment in AI-driven governance has the potential to reshape the way public services are delivered in Nigeria. By embracing this technology early, the state is laying the foundation for a smarter, more efficient, and more transparent future.