Artificial Intelligence (AI) has become an important technological innovation influencing different sectors, including education. In Nigeria, tertiary institutions are gradually integrating AI technologies such as intelligent tutoring systems, plagiarism detection tools, chatbots, and generative AI applications to enhance teaching and learning processes. This study examines the effect of artificial intelligence on students’ academic performance in tertiary institutions in Nigeria. The research adopted a quantitative approach and reviewed the existing literature and empirical studies related to AI adoption in Nigerian higher education. However, the misuse and overreliance on AI tools may negatively affect critical thinking skills, academic integrity, and independent learning. The study concludes that while AI contributes positively to educational development and academic performance, its effective use requires proper regulation, digital literacy training, and institutional policies to maximize benefits and minimize risks.