Can you imagine walking into work one day only to find out that your most diligent colleague—who never sleeps, never demands a salary, and doesn’t take tea breaks—isn’t human?
With machines automating tasks and replacing jobs, that looks so possible. Artificial Intelligence (AI), encompassing generative AI, automation, and robotics, has grown from being a niche technology to an indispensable tool no industry or economy must miss out on.
Globally, investments in AI have increased, with tech companies like OpenAI, Google DeepMind, Anthropic, Microsoft, Amazon and Nvidia pouring a lot into this innovation.
AI’s double role of enhancing productivity and potentially displacing traditional jobs has prompted nations to race towards effective regulation, as seen with the EU AI Act, the US Executive Order on AI, and China’s AI policies to mitigate risks.
For Nigeria, statistics leave us wondering if the country is prepared to handle what AI brings, especially as economic imbalances have already led to high workforce reductions.
A recent report by Nigerian data company Mustard Insights revealed that 43.7% of business owners in Nigeria reduced their workforce in 2024 due to economic challenges, leading to talks about how AI-induced automation will further impact employment.
Nigeria’s Workforce and the AI Drive
Job Creation vs. Job Displacement
The integration of AI into various sectors can automate tasks traditionally performed by humans. As of February 2024, 13 Deposit Money Banks in Nigeria had integrated AI-powered chatbots into their services, making customer interactions better and reducing the need for humans. While this improves efficiency, it also speaks really loudly about job displacement.
The 2025 Future of Jobs Report projects that AI and information processing technology will displace 92 million jobs while creating 170 million new ones by 2030. This tells us AI’s impact on employment is not just a theory.
However, the question about Nigeria’s workforce being ready to transition into these new AI-driven roles cannot be ignored.
The Nigeria Business Survival Report 2024 discloses that 85.4% of companies reported an increase in business costs due to inflation, leading many to adopt automation and AI-driven solutions to cut costs. Nonetheless, expenses are still increasing for companies, and AI could become both a tool for efficiency and a driver of job losses.
The Skill Divide & Nigeria’s Readiness
Assessing Nigeria’s readiness for wide AI adoption reveals both strengths and areas needing improvement. The AI Preparedness Index scores sub-Saharan Africa, including Nigeria, at just 0.34, showing a low level of readiness.
Even with the digital skills gap, there are promising signs of AI adoption. A report by Ipsos on behalf of Google found that 70% of Nigeria’s online population is already using generative AI tools, far above the global average of 48%. However, while adoption is high, structured education and skill development are inadequate.
Nigeria’s universities have been slow to integrate AI-focused curricula, leaving a workforce largely unprepared for AI-centric roles. While 41.7% of businesses have diversified their products and services to stay competitive, many still lack the AI expertise necessary to thrive in the digital economy.
Without targeted upskilling initiatives, Nigeria risks facing mass unemployment as automation replaces traditional jobs. Conversely, with strategic investments in education and AI-driven entrepreneurship, the nation can leverage AI as a push for economic growth.
The Economic Impact of AI on Nigeria
AI’s Work in Key Sectors
AI is already changing key industries in Nigeria:
- Finance & Banking: AI-powered fraud detection, credit scoring, and chatbots are simplifying operations.
- Agriculture: AI-driven precision farming and yield prediction tools are improving food production.
- Healthcare: AI-enhanced diagnostics and telemedicine are addressing gaps in healthcare access.
- Manufacturing: AI is driving smart factories and optimized logistics, boosting efficiency.
- Tech & Startups: Nigeria’s AI-driven startups are boosting innovation and economic diversification.
According to the Nigerian Bureau of Statistics, the ICT sector contributed 16.35% to Nigeria’s real GDP in Q3 2024, pointing to the thriving importance of technology even though there was a decline from 19.78% in Q2. Again, Statista projects that Nigeria’s AI market will grow by 27.08% between 2025 and 2030, reaching a market volume of $4.64 billion by 2030.
However, economic instability can hinder this. The Nigeria High Commission reports that Nigeria’s GDP per capita stagnated between 2015 and 2022, with policy missteps, high inflation, and currency devaluation dampening growth. While the current administration has introduced reforms to stabilize the economy, inflation is still pulling down business confidence, prompting companies to cut costs—including workforce reductions.
Foreign Direct Investment (FDI) & AI Startups in Nigeria
The boom of AI startups in Nigeria is attracting huge foreign investment, but infrastructure deficits, inconsistent electricity supply, limited internet penetration, and limited funding challenge the sustained growth.
Nevertheless, Nigeria’s large and youthful population can make up a huge market for AI solutions. With strategic investments in AI education, research, and digital infrastructure, Nigeria can become a hub for AI innovation without boundaries in Africa.
AI Policy, Ethics, and the Future of Work in Nigeria
Regulation and Government Response
Currently, Nigeria is in the early stages of formulating AI regulations. The National Information Technology Development Agency (NITDA) is expected to help build the country’s AI strategy. Observing global regulatory models, such as the EU AI Act and the U.S. Executive Order on AI, can help with ideas to develop our own.
However, the World Bank warns that while recent economic reforms have eliminated fuel subsidies and unified exchange rates, inflation remains high, increasing hardship for businesses and workers alike. Economic instability challenges long-term planning and without a stable economic environment, AI regulation may take a backseat to more immediate financial issues.
Ethics & AI Bias
AI systems trained on non-representative data can exhibit bias, leading to unjust outcomes for Nigerian users. Ensuring ethical AI use requires frameworks that promote fairness, accountability, and transparency.
Added to this, data privacy and security are both big concerns. AI systems process large amounts of sensitive information, and without proper oversight, data breaches and misuse could worsen existing inequalities. Balancing the benefits of automation with the need to protect the human workforce is important to prevent increasing existing inequalities.
What Needs to Happen Next?
- Government & Policymakers: Develop and implement a structured AI strategy, including regulations, infrastructure investment, and AI research support.
- Businesses: Invest in AI upskilling programs to ensure employees stay competitive in the market.
- Individuals: Pursue AI education to stay relevant in this AI-driven job market.
- Global Collaborations: Promote partnerships with AI firms and institutions to facilitate knowledge transfer and technological progress.
Will AI Be a Curse or a Blessing for Nigeria?
The AI revolution is already changing Nigeria’s workforce and economy. While AI threatens traditional jobs, it also brings an opportunity for economic growth.
However, economic instability and high business costs have already led to job losses, as revealed by Mustard Insights. If AI adoption grows without a parallel investment in workforce reskilling, Nigeria could face even greater unemployment rates.
On the other hand, with targeted policies, digital infrastructure investments, and AI-focused education, Nigeria can leverage AI as a tool for innovation and economic growth.
Hence, Nigeria must embrace AI wisely—or risk being left behind in the next industrial revolution.
Finally:
The popular saying goes thus; “AI is not just the future; it is the present. The nations that embrace it wisely will determine the future of work and economic prosperity.” Will Nigeria be one of them?
