Artificial Intelligence (AI) has the potential to significantly boost Nigeria’s economic future by driving growth in key sectors like agriculture, healthcare, and finance, improving productivity, creating new jobs, and enhancing decision-making across industries, but its full impact hinges on addressing challenges like data access, skills development, and ethical considerations to ensure equitable benefits for the nation
Artificial Intelligence (AI) can add $15billion to Nigeria’s economy by 2030, technology company, Google.
Google disclosed this in its new report on Nigeria’s digital economy, released on Thursday in Lagos.
The report, conducted independently by Public First, underscores the significant economic impact of digital technologies in Nigeria.
The Digital Opportunity of Nigeria report outlines how Google’s products and infrastructure are driving digital transformation and contributing to economic growth across the country.
With Nigeria experiencing rapid digital development, the report highlights the potential for further growth.
According to the study, every $1 invested in digital technology in Nigeria generates over $8 in economic value.
This emphasises the critical role of digital technology, including connectivity, cloud computing, and artificial intelligence (AI), in shaping Nigeria’s economic future.
The report said AI is capable of generating $15bn for Nigeria every year.
It also said every $1 invested in digital technology in Nigeria contributes $8 to the country’s economy, illustrating the high return on investment in the sector.
In 2023, it said, Google’s products and services-including Search, Ads, YouTube, and Cloud-contributed an estimated $1.8 billion in economic activity across Nigeria. This has significantly boosted the productivity of Nigerian businesses, creators, and workers.
Google’s digital skills programs, including Digital Skills for Africa and the Career Certificates Program, have helped millions of Nigerians, with over 1.5 million young adults learning new digital skills in 2023 alone.
In 2021, Google committed $1 billion to accelerate Africa’s digital economy, focusing on improving internet access, supporting local entrepreneurs, and fostering innovation. The Nigeria Digital Opportunity report illustrates how these investments are already creating lasting impacts in the country.
The report also provides strategic recommendations for policymakers, advocating for increased cloud-first policies and enhanced digital infrastructure to maximise AI’s potential in Nigeria. Additionally, it highlights the need for stronger STEM education and AI fluency to prepare Nigeria’s workforce for the future.
Olumide Balogun, Director, West Africa at Google, stated: “We’re thrilled to see the positive impact that digital technology is having on Nigeria’s economy. This report underscores the importance of continued investment in digital skills and infrastructure to unlock the full potential of Nigeria’s vibrant digital economy.”
Amy Price, Director & Head of Technology Policy at Public First, added: “Nigeria is a digital front-runner in Africa, and tech investment will be a powerful catalyst for further growth and development across the country. This is particularly true when it comes to connectivity, cloud computing, and artificial intelligence.”
The Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) announced oct 31 2024 new support from Google to accelerate AI talent development across Nigeria. This support, which is provided through a N2.8billion grant from Google.org to Data Science Nigeria, will bolster the Ministry’s ongoing AI-driven initiatives to upskill youth and under- and unemployed Nigerians, with a focus on AI skill development and education. This grant is part of Google.org’s broader $5.8million commitment to support digital skills programs across Sub-Saharan Africa.
Dr. ‘Bosun Tijani, Honourable Minister of Communications, Innovation & Digital Economy, emphasised the importance of this support in driving Nigeria’s digital transformation: “This support from Google is a testament to our commitment to positioning Nigeria as a leader in AI innovation. By leveraging Google’s expertise and resources, we are creating opportunities to equip Nigerians with the skills they need to thrive in the global digital economy. This is a major step forward in our journey towards a more inclusive and innovative future for all Nigerians.”
Will AI Take Our Jobs?
The notion that ‘AI is going to take our jobs’ has become a pervasive concern in Nigeria and globally. The democratisation of artificial intelligence, signalled by the growing popularity of Generative AI, has only intensified the anxiety surrounding AI-driven job displacement. While these concerns are not entirely unfounded, the prevailing narratives appear to oversimplify the complex issues at play.
According to a Goldman Sachs report, AI could replace about 300 million full-time jobs. Similarly, a study by MIT and Boston University predicts that AI could displace up to two million manufacturing workers in the United States by 2025. The McKinsey Global Institute also estimates that by 2030, approximately 375 million workers worldwide, about 14% of the global workforce, may need to transition to new careers due to advancements in digitisation, robotics, and AI.
Regardless that Ai could potentially replace most jobs it still predominantly requires skilled individuals to be able to carry out specialised task or job, ai is currently only able to replace a handful of jobs or improve on current ways of doing things. needless to say the potential with ai for countries like Nigeria or other west African countries is huge as we could see other streams of income surge to new heights in revenue in the near future and emergence of newer and more effective ways of doings things, including reforming our political selection process, rise in the content creator economy, augmented reality for learning etc. it’s however only clear that the near futures holds only promise with the advent of ai and technology in the Nigerian economy!
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