The International Monetary Fund (IMF) and the World Bank have warned that artificial intelligence (AI) could worsen Nigeria’s employment challenges if the country fails to equip its workforce with the skills needed to adapt to technological changes.
Although AI presents opportunities to improve productivity, create new businesses and expand access to essential services, the two international financial institutions cautioned that its benefits would not automatically translate into more jobs, particularly in developing economies with weak infrastructure and limited digital capacity.
Speaking at the Small AI: More and Better Jobs event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, IMF Managing Director Kristalina Georgieva described AI as a “slow-moving tsunami”, warning that its impact on the global labour market could be far-reaching.
Georgieva estimated that about 40 per cent of jobs worldwide could be affected by AI, with some occupations transformed, others downgraded and some eliminated entirely.
Her warning carries particular significance for Nigeria, where unemployment, underemployment and the need to create productive opportunities for a growing population remain major economic concerns.
The rapid adoption of AI could expose workers whose jobs involve routine or repetitive tasks to displacement, while creating demand for new skills that many Nigerians may not yet possess.
The challenge, therefore, is to ensure that the adoption of AI does not outpace the country's capacity to prepare workers for emerging opportunities.
Georgieva emphasised the importance of understanding the implications of AI and investing in the skills required to help workers navigate the changing employment landscape.
For Nigeria, this would require a coordinated approach involving government, businesses, educational institutions and other stakeholders to strengthen digital literacy, expand technical training and support workers whose occupations may be affected by automation.
World Bank Group President Ajay Banga also stressed the need to place employment at the centre of economic development, arguing that technological advancement should improve people's livelihoods rather than simply increase efficiency.
“The bank’s entire focus has to be on jobs,” Banga said.
He advocated the deployment of affordable and practical AI applications that could help improve productivity across critical sectors, particularly agriculture, healthcare and education.
Banga illustrated the potential of what the World Bank describes as “Small AI” with the example of a farmer using a mobile phone to photograph a diseased crop and receive guidance on how to treat it.
Beyond identifying the disease, the technology could connect the farmer to information about improved seeds, fertilisers, credit facilities, insurance and markets.
Such applications could help farmers make better decisions, reduce losses and improve agricultural output without requiring expensive equipment or advanced technical expertise.
For Nigeria, where agriculture remains an important source of employment and livelihood, accessible AI tools could provide opportunities to improve productivity among smallholder farmers and strengthen rural economies.
In healthcare, AI-enabled applications could assist frontline medical workers in assessing patients, identifying possible health conditions and determining when specialist intervention is necessary.
The approach seeks to make AI useful in environments where medical personnel, infrastructure and funding are limited, rather than relying exclusively on sophisticated systems that may be too expensive to deploy widely.
The concept of Small AI places emphasis on solutions that are affordable, practical and suited to local conditions, including language, infrastructure constraints and the needs of communities.
This could prove particularly relevant to Nigeria, where differences in access to electricity, internet connectivity and digital services remain significant barriers to technological adoption.
The World Bank's October 2026 Africa Economic Update identifies Nigeria, alongside Kenya and South Africa, among the continent's leading centres of AI activity.
However, adoption remains at an early stage, pointing to the need for African countries to develop applications that respond to their economic circumstances rather than simply replicate models designed for advanced economies.
Agriculture, education, healthcare, financial services, logistics and public administration are among the sectors where AI could improve service delivery, reduce operational costs and create opportunities for new businesses.
Nevertheless, the extent to which Nigeria benefits from the technology will depend on its ability to overcome longstanding structural challenges.
Unreliable electricity supply, inadequate internet access, limited digital skills and weaknesses in data infrastructure could prevent businesses and workers from taking advantage of AI-driven opportunities.
Small businesses, which account for a substantial share of economic activity, could struggle to adopt the technology if the costs of connectivity, digital tools and training remain prohibitive.
There is also the risk that AI adoption could widen existing inequalities, with educated workers and technology-driven companies capturing a disproportionate share of the benefits while vulnerable workers face declining demand for their services.
Addressing these concerns would require investments in reliable power, affordable broadband, digital education and vocational training.
Educational institutions would also need to review their curricula to ensure that graduates acquire skills relevant to an economy increasingly shaped by automation and AI.
Businesses, meanwhile, would need to consider how to integrate AI into their operations while preparing employees for changing job requirements.
For policymakers, a central concern is how to encourage innovation without overlooking the potential social costs of technological disruption.
This includes supporting workers through retraining programmes, helping small businesses adopt affordable digital tools and creating an environment in which technology can stimulate new enterprises and employment opportunities.
Nigeria's demographic profile makes the issue particularly urgent. With a large and growing population of young people entering the labour market, the country needs an economic model capable of generating employment on a scale that matches the demand for jobs.
AI could help meet that challenge by lowering business costs, improving access to information and enabling entrepreneurs to develop new products and services. However, these gains will depend on whether technological adoption creates additional economic activity and expands opportunities for workers.
The warning from the IMF and the World Bank highlights the need for Nigeria to look beyond the excitement surrounding AI and focus on its practical implications for employment, productivity and economic inclusion.
Ultimately, the question is not whether AI will transform the workplace, but whether Nigeria can prepare its people and institutions to benefit from that transformation.
Without deliberate planning and investment, the technology could intensify existing employment pressures. With the right policies, infrastructure and skills development, however, it could become a tool for improving productivity, supporting enterprise and expanding access to decent work.
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