The integration of Artificial Intelligence (AI) into higher education has become a transformative force globally, and its potential in reshaping the educational landscape in Nigeria presents both significant opportunities and challenges. This study explores the role of AI in Nigerian higher education institutions, analyzing its opportunities and threats. Through a comprehensive review of existing literature and qualitative analysis, the research examines the potential benefits of AI in enhancing personalized learning, improving administrative efficiency, and fostering innovation in teaching and research. However, the study also identifies critical threats, including infrastructure limitations, digital inequality, ethical concerns, and resistance to technological adoption. By utilizing a SWOT (Strengths, Weaknesses, Opportunities, and Threats) framework, the study highlights the need for a balanced approach to AI implementation, emphasizing the importance of policy reforms, investment in technological infrastructure, and stakeholder engagement. The findings suggest that while AI offers immense potential to revolutionize Nigerian higher education, its successful integration requires addressing systemic challenges, fostering digital literacy, and ensuring equitable access. This research provides valuable insights for policymakers, educators, and technology developers seeking to navigate the complexities of AI adoption in Nigeria’s higher education sector.