Cost-Benefit Analysis of Artificial Intelligence for Environmental Sustainability in Nigeria

Abstract

This study evaluates the cost–benefit dynamics of artificial intelligence (AI) in advancing environmental sustainability in Nigeria. Using a survey design, data were collected from 1,200 respondents across six geopolitical zones and analysed using descriptive statistics and multiple regression techniques. The findings reveal that although AI implementation entails relatively high costs (mean = 3.8), its environmental (mean = 4.2) and economic benefits (mean = 4.0) are substantial. Regression results indicate a strong positive effect of AI benefits on sustainability outcomes (β = 0.68, p < 0.05), while costs exert a negative but significant influence (β = -0.35). Overall, the results confirm that the benefits of AI outweigh its costs, supporting its economic and environmental viability. The study concludes that AI is a critical enabler of sustainable environmental management in Nigeria, particularly in enhancing monitoring, efficiency, and decision-making. It recommends increased government investment in AI infrastructure, development of supportive regulatory frameworks, promotion of public–private partnerships, and capacity building through education and training. These measures are essential for overcoming cost barriers and maximising the sustainability potential of AI technologies in Nigeria.