In the present study, the heat transfer of nanofluid magnetohydrodynamic (MHD) fluid flow through a channel with radiation and viscous dissipation effect is considered. Also, the induced magnetic field is considered. The main aim of the study is to obtain the impact of the induced magnetic field, nanoparticle volume fraction, non-electrically conducting, and conducting walls on the MHD nanofluid flow and heat transfer. Hence, the governing equations include momentum, energy, and induced magnetic field equations that are transformed into non-dimensional forms. The analytical least square method (LSM) and numerical finite element method (FEM) effectively conducted for solving the problem. The results of LSM and FEM are compared, and it is observed that there is an excellent agreement. The effect of several parameters such as Hartmann number, suction/injection parameter, magnetic Prandtl number, radiation parameter, Eckert number, and nanoparticle volume fraction are demonstrated and discussed. It can be concluded that the augmentation of the Hartmann number reduces the value of velocity by up to 50%, and the magnetic Prandtl number augmentation reduces the non-dimensional velocity value of about 10% but increases the induced current density value more than twice. Moreover, the increase of radiation parameter, Eckert number, and nanoparticle volume fraction enhance the heat transfer by 20–50%. Besides, the absolute value of the induced magnetic field increases when the Hartmann number rises. Further, the injection parameter decreases the value of velocity and induced magnetic field by 40–50%; whereas, the value of temperature increases by about 40%, and the induced current density increases by 5–7 times. The suction parameter has the contrary effect.