If the first three industrial revolutions have taught us anything, it’s that a nation’s progress depends largely on its ability to disseminate specific technologies.
In fact, not all technologies are equal. Some are single-purpose technologies, such as lawn mowers or smoke detectors, designed to excel at one specific task.
Others are general-purpose technologies (GPTs) like electricity and the internet, with the power to redefine entire economies.
These GPTs aren’t just tools; they’re game-changers. They revolutionise every sector they touch, acting as catalysts for widespread innovation and growth.
Artificial intelligence (AI) is largely regarded as the general-purpose technology of our time, predicted to transcend any other technological breakthrough that’s gone before.
Price Waterhouse Coopers (PwC) predicts that the technology could contribute more than $15 trillion to the global economy in 2030, which, as it points out, is comparable to the current outputs of China and India combined.
In recent years, there has been a surge of excitement and determination to harness AI for both social and economic development. And for good reason.
The possibilities are immense: Lagos, for instance, has emerged as a leading tech hub, boasting rapid growth in venture capital, startups, and value creation.
In fact, according to the Dealroom Global Tech Ecosystem Index, Lagos is fast establishing itself as a prominent force on the world stage of technological innovation.
It’s well recognised that Nigeria is already producing AI innovation. The focus now must be on making the technology widely accessible across the country. Economists note that true economic growth comes from not just leading in GPT innovation but also adopting essential GPTs across the economy.
And so, the question is – how do we build an AI economy in Nigeria? History has shown that it requires a holistic approach to several interconnected policy priorities, two of which I’ll discuss below.
Cultivating a strong AI ecosystem
In Nigeria, mobile internet has spurred trailblazing enterprises like Jumia and Flutterwave, revolutionising business models and unlocking immense growth potential.
AI promises to amplify this impact, creating ‘flywheel’ effects that will propel organisations into new realms of innovation and opportunity at an unprecedented pace.
Given the transformative potential of AI, it is crucial to establish a robust foundation for its growth and integration.
AI is developed on a tech stack similar to a building structure, starting from the bedrock of infrastructure like power and chips, and extending to the innovative applications that businesses and consumers use daily. To nurture a vibrant AI ecosystem, it’s essential to begin with the infrastructure tier that forms the backbone of any advanced technological progress.
Just as electricity relies on power plants, AI depends on datacentres and robust infrastructure. Recognising this need, companies such as Microsoft have proactively invested in critical components such as Africa’s first datacentres as well as Edge Nodes in Nigeria.
These investments deliver faster networks and improved access to cloud services for local businesses, strengthening Nigeria’s digital ecosystem and paving the way for widespread AI adoption.
Despite this, African countries such as Nigeria are still considered ‘waking up’ or ‘nascent’ in AI investment, according to Oxford Insight’s Global AI Index.
Indeed, AI capabilities are doubling every six months, requiring constant investment to maintain cutting-edge infrastructure.
It’s for this reason; we can expect to see ongoing strategic investments from organisations across both the public and private sectors to expand advanced infrastructure in strategic locations on the continent. Industry leaders will increasingly be required to combine forces to drive the scale of impact needed, partnering to develop entire digital ecosystems, built on investment in state-of-the-art datacentres.
Collaborations such as these are crucial, especially at the platform layer, where data is transformed into sophisticated models through extensive training. The aim is to enable individuals to use this technology and drive innovation at the application layer, fostering progress and opportunity across the continent.
Developing an AI-ready workforce
One of the key lessons from history is that skilling plays a crucial role in adopting GPTs. It’s clear that organisations across any economy can’t effectively embrace new technology without a workforce that knows how to use it.
Nigeria has a unique role to play in creating this pool of skilled young people to power the advancement of AI, not just in the local economy, but in the global economy too.
In fact, it’s estimated that by 2030, 42 percent of the global youth population will be African, with Nigeria being a significant contributor to this growth.
While Sub-Saharan Africa currently holds the lowest ranking on the 2024 AI Readiness Index, the region is steadily advancing in AI development.
Notably, the 3MTT programme, launched by the Federal Ministry of Communications, Innovation and Digital Economy, is nurturing a new wave of technical talent in pursuit of two million digital jobs by year’s end. By early 2024, an impressive four million Nigerians had already interacted with the platform, signalling strong momentum toward a digitally empowered workforce.
Initiatives such as these all share a crucial element, strong public-private partnerships. Governments alone can’t bridge the skills gap, so the private sector, especially tech companies, must contribute significantly.
Already, major players in the tech space are prioritising national skilling initiatives, alongside support for local government skilling initiatives, with the aim of equipping as many people across the country as possible with essential AI skills.
The belief is that by working together, we can create widespread and sustainable impact, particularly when it comes to addressing systemic challenges to skills development, such as bridging the gap between learning and employment, and reaching underserved areas of the continent. And it’s not just partnerships between government and major corporations that will lead the way.
Key partnerships with organisations like the Wootlab Foundation have been instrumental in launching targeted AI programmes that equip participants with the skills needed for success in the digital economy.
These initiatives are laying a strong foundation for the ongoing expansion and future growth of Nigeria’s AI ecosystem.
Enabling the shift from consumers to producers of AI
History has shown that if a technology is to change every part of the economy, the country that benefits the most will be the one that successfully diffuses it across all sectors. This was evident with electricity in the United States, where widespread adoption spurred significant GDP growth.
By focusing on diffusing AI throughout the country, Nigeria has a unique opportunity to change the course of history.
We can become not just consumers of AI, but also producers of the technology for the rest of the world. In successfully developing a thriving AI economy, we can drive economic growth, foster innovation, and position Nigeria as a leader in the global AI landscape.
