Volume 10, Issue 8, August – 2025 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25aug1025

Artificial Intelligence and Economic Diversification:

Opportunities for Nigeria’s Growth Agenda
Nubi Achebo1
1
PhD, Nigerian University of Technology and Management
Apapa Lagos, Nigeria

Publication Date: 2025/09/05

Abstract: AI has spurred growth and development in virtually all nations of the world including Nigeria. The adoption has
resulted in socio-economic transformation in many cases. The study draws from literature, thematic content analysis, and policy
evaluation to uncover the role AI plays in agriculture, healthcare, finance, and education. The study also addresses barriers
such as infrastructure limitations, ethical concerns, and regulatory challenges while offering practical recommendations for
inclusive growth. While the transformation is ongoing, it is already noticeable, and the government reinforces the development
by providing a policy framework. This work positions Nigeria as a pivotal case study in harnessing AI for transformation and
sustainable development.

Keywords: AI, Artificial Intelligence, Transformation, Socio-Economic Transformation, Nigeria.

How to Cite: Nubi Achebo (2025) Artificial Intelligence and Economic Diversification: Opportunities for Nigeria’s Growth Agenda.
International Journal of Innovative Science and Research Technology, 10(8), 2306-2319.
https://doi.org/10.38124/ijisrt/25aug1025

I. INTRODUCTION II. AN OVERVIEW OF AI

The immense improvements in interconnected computers, Artificial intelligence (AI) describes computer systems
networks, and storage have spurred the advent and rapid with human-like intelligence abilities. The systems mimic
adoption of Artificial Intelligence technologies (Gwagwa, et al., cognitive functions that enables learning and problem solving.
2021). Computing platforms that combine knowledge The limits of AI prowess are still under contention; as machine
representation enable a broader range of users to perform capabilities improve, tasks that require human-like thinking are
complex tasks. These platforms help transform limited human, performed by AI technologies today. The Turing test (a
economic, and natural resources into opportunities for socio- measure of a machine's ability to exhibit intelligent behavior) is
economic development, but pose a development dilemma for an important AI milestone (Iyengar, et al., 2025). A few AI
the African continent. Several countries have started to explore technologies making a difference today, includes advanced web
and deploy such technologies in socio-economic activities to search engine recommendation systems (Google, Bing), speech
leapfrog several stages of development. In addressing the recognition (Alex, Siri), automated driving cars (Tesla),
challenges of food security and environmental justice. personalization systems (YouTube, Amazon, and Netflix) voice
recognition (Siri and Alexa), and decision making systems
AI deployment in agriculture is limited, however, in the (Watson, ORION, HireVue) (Marwala, 2015).
most vulnerable communities, those with the least capacity and
severely limited access to rapid technological advances. III. AI EVOLUTION IN NIGERIA
Nigeria can hence play a leading role in its deployment if
drivers can be established and an appropriate roadmap Artificial intelligence (AI) development accelerated
developed. during World War II, driven by the adoption of the computer as
a means to realize what was then known as the Artificial Brain
(Prieto-Gutierrez, et al., 2023). At Harvard, Aiken constructed
the first mechanical digital machines, and British researchers
worked on automated computation. Due to these efforts, the

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United States saw the development of its first large-scale, Nigeria's main industries are rapidly changing due to AI.
general-purpose digital computer, which allowed for decision- Supply chain optimization, yield monitoring, and precision
making abilities that were previously limited to humans. These farming enabled by AI assist farmers in boosting output and
computers were used for a variety of purposes by businesses lowering losses after harvest. Predictive analytics and
like General Motors in the early 1960s. Shakey, the first robot healthcare diagnostics benefit from AI tools like vaccine
created by Stanford University, had the ability to analyze optimization systems, which enhance service delivery and
instructions. accessibility. AI supports individualized education in schools
through digital skill training programs, adaptive tutoring
The term “artificial intelligence” was introduced through systems, and government-supported initiatives like the 3MTT
multiple American institutions. AI concept was based on the program, which aims to teach digital literacy and AI to millions
idea that intelligent learning could be conceptualized and of people (Amiri, et al., 2025).
simulated by machines. There was an "AI winter" in the 1970s,
marked by a decline in interest and funding. In the 2000s, Fintech uses AI to find fraud, score credit, and make
significant advancements were made again, removing earlier chatbots to improve customer service and financial inclusion,
constraints and allowing AI systems to self-learn and analyze especially for groups that lack access to these services. These
intricate algorithms. Watson, an AI system developed by IBM new ideas are making things more efficient, giving more people
in 2007, participated in Jeopardy and won in 2011 by using access, and helping the economy grow. But there are still
language analysis to process unstructured data. problems, such as inadequate infrastructure, a lack of local
expertise, and gaps in regulations. If Nigeria keeps investing in
The gradual but steady incorporation of technologies into and supporting AI policies, it could help these sectors grow and
vital business sectors impacted artificial intelligence (AI) move Nigeria's development forward significantly.
development in Nigeria. At first, the most prevalent use was in
financial services, especially in banking and fintech, where V. AI IN AGRICULTURE
chatbots, fraud detection systems, and mobile payment
solutions were used. AI applications began to proliferate across Agricultural innovators in the country are particularly
industries as digital infrastructure improved and more people enthusiastic about AI because of its proven success in
connected to the internet (Adediran, et al., 2024). For instance, improving yields and the intimate relationship agriculture
they assisted students with adaptive learning systems, shares with the country’s social and economic sustainability.
physicians with diagnostic support, and farmers with precision Nigeria is also exploring new ways to incorporate AI in health
farming. Two government initiatives contributing to the technologies to aid in diagnostics and patient care. In the
development of an environment where AI can flourish through financial sector, AI is reshaping the landscape, driving the
skill development and innovation hubs are the National Digital transformation in financial inclusion and risk assessment
Economy Policy and the 3MTT (Three Million Technical (Diallo, et al., 2024). Yet the country’s services sector remains
Talent) program. generally under-automated, while the industrial and
manufacturing sectors employ very few AI use cases.
IV. CURRENT STATE OF AI ADOPTION IN
NIGERIA AI has permeated numerous facets of daily existence,
from smartphones and navigation to office software and
Nigeria's AI ecosystem has expanded significantly in hospital diagnostic procedures. It is engrained in contemporary
recent years thanks to startups, academic institutions, and media, including films, television, and reading material. AI
alliances with global tech firms. To address issues that are systems like Siri and Alexa demonstrate this integration (Stone,
particular to Nigeria, local innovators are developing AI et al., 2022). In Nigeria, AI has been embraced by sectors such
solutions tailored to the nation. For instance, they are as agriculture, healthcare, education, and finance.
developing machine learning models for financial inclusion, AI
tools for health screening in rural areas, and tools for Developments in science and technology can enhance
smallholder farmers to predict crop diseases. The expansion of daily living and establish new disciplines and careers.
research facilities, hackathons, and training programs has also Technological progress propels growth in national sectors;
benefited the talent pipeline by preparing a new generation of diminished investment in science and technology precipitates a
workers for AI-related tasks (Reuben, 2023). Issues like slowdown. AI occupies a pivotal role among contemporary
funding gaps, concerns about data governance, and a lack of technological arenas.
infrastructure remain unresolved. Nonetheless, the pattern
indicates that AI in Nigeria is progressing from testing to Nigeria is predominantly agricultural, accompanied by a
complete system integration. This has the potential to alter the populous livestock subsector. The agriculture and livestock
nation's socio-economic progress and position it as a major sectors assume a leading position in the Nigerian economy
participant in Africa's digital revolution. (Gwagwa, et al., 2021). Consequently, adopting AI
technologies generates enthusiasm among farmers and
agribusiness stakeholders.

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ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25aug1025

Artificial intelligence implementation fosters the offering significant growth potential, while AI is progressively
emergence of technologies for efficient agricultural activities. making its way into an increasing number of fields and sectors,
AI techniques expedite agricultural overview and analysis, promising a fundamental reshaping of the country’s economy.
thereby aiding in advancing agricultural practices.
VI. AI IN HEALTHCARE
 Technological Innovations
Technological innovations are critical drivers of socio- Nigeria remains a developing nation amid the emerging
economic growth. Nigeria is exploring large-scale deployment industries that could potentially transform its socio-economic
of artificial intelligence (AI) in its public and commercial landscape. Artificial intelligence (AI) can provide Nigeria with
spheres to boost socio-economic development (Okunlola, et al., enormous capabilities ranging from augmenting productivity
2025). Building on the development history of artificial and boosting economic growth, to providing novel solutions
intelligence applications elsewhere, Nigerian institutions are and enhancing people’s lives. Numerous technologies
establishing AI research and innovation centers, enriching AI connected to AI have the “potential to boost productivity and
curricula, and implementing AI initiatives. The anticipated create significant new sources of value creation“ (Ogunbodede
impact is a fundamental reshaping of socio-economic & Atchrim, 2025). AI is becoming pervasive in the digital
development. services that are shifting the balance of power between
companies and countries. AI technologies magnify the impact
 Economic Impact of Big Data through advanced machine learning (ML), and
Artificial intelligence (AI) encompasses a broad range of standardize it. An emerging wave of AI techniques focused on
technologies including robotics that can navigate and assemble developing human-like intelligence could radically alter current
objects, and algorithms that pick stocks for investors. AI machine capabilities.
technologies have extensive effects on multiple economic
dimensions and could play a crucial role in reversing stagnant The increasing number of AI-related events shows that
productivity in developed economies. Intelligent machines, Nigeria is well-positioned to welcome this AI-driven future.
which are powerful capital-labor hybrids capable of producing Improvements in financial services, healthcare, education, and
output at scale, rely on data rather than money and can agriculture all contribute to Nigeria's improved socio-economic
continuously improve by learning from data development. However, new issues about the nature of work
(Wiriyathammabhum, et al., 2016). There is ongoing debate and possible bias are starting to surface. In order to create a
about whether AI serves as a capital-augmenting factor that secure, reliable, and creative AI environment, a forward-
replaces less productive labor or as a labor-augmenting factor thinking governance framework combines institutional
that complements human work. interventions with regulatory measures. A promising way to
manage the ongoing technological transition within the
The gradual adoption of AI and similar disruptions, as Nigerian setting emerges from a comparative analysis with
precedented by the internet, suggests a progressive integration other nations (Etori, et al., 2023).
of these technologies; however, rapid developments, such as AI
self-replication or accelerated knowledge enhancement, could ML allows discernment of patterns and predictions based
result in a swift transition. Achieving a human-level AI could on information, without explicit programing. The three key
boost economic growth to 30 per cent by 2100. Emerging kinds of ML include “supervised, unsupervised, and
technologies need to be embedded into available processes, and reinforcement learning” (Chelliah, at al., 2023). NLP enables
companies must be able to leverage them effectively. Many AI machines to understand, manipulate, and generate natural
improvements will not be product innovations but rather language, thereby creating the foundation for human-computer
process advancements that are more difficult to identify and interactions (Lemmens, et al., 2025). CV makes it possible to
thereby to evaluate. retrieve meaningful information from digitital data via machine
learning for use in understanding and decision-making. Early
New digital technologies have enabled new ways to artificial-intelligence applications concentrated primarily on
conduct exchange, often in the form of new organizations such automating well-defined procedures based on if-then rules and
as platforms, marketplaces, and blockchain. These deliberative reasoning. The System-AI paradigm enables
organizational changes have the potential to change many flows human operators to use artificial-intelligence products
of goods and services, including finance, raw materials, energy, effectively rather than replacing their judgment entirely.
and so on. Many digital technologies are relatively easily Consequently, many human-machine combinations currently
transferable over long distances and tend to affect economically outperform either a human or an AI system acting
advanced economies first. This differential diffusion of AI is independently.
likely to influence countries’ relative growth path and the
pattern of international trade (Andersson Lipcsey, 2023).  Improving Patient Care
Nigeria’s unique circumstances and socio-economic realities Artificial intelligence (AI) offers promising applications
therefore, provide a rich area of study and “wisdom” for the rest in healthcare that directly contribute to patient care (Hanna, et
of the developing world. Demand remains unexploited, al., 2025). AI assists medical doctors in providing timely and

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effective healthcare services, especially considering the doctor- accessible information supports the development of training
patient ratio in Nigeria. This leads to increased patient programs consistent with Nigeria’s socio-economic realities.
satisfaction and improved clinical outcomes. AI-enabled
solutions facilitate faster and more accurate diagnoses, enabling  Personalized Learning
proper care from the outset. Through natural language Artificial intelligence (AI) adoption in Nigeria has
processing, AI also empowers healthcare workers to interpret spurred the development of educational programs, enabling
unstructured data from medical records, such as handwritten personalized learning. Machine-learning algorithms now
patient notes and prescriptions. These features make it easier identify key knowledge gaps and deliver targeted content to
for healthcare services to reach people (Etori, et al., 2023). students. Because AI systems constantly analyze student
interactions, they can tailor their approach to individual needs,
 Cost Reduction Strategies thereby empowering learners who would otherwise lack
For developing nations like Nigeria, where many people adequate feedback (E. August & Tsaima, 2021). As a result,
lack access to basic medical services, lowering healthcare costs self-paced online courses accessible via mobile devices have
is essential (Ben-Caleb, et al., 2019). Nigeria's public, private, become viable alternatives to in-person education. The dearth
and informal sectors have all implemented AI to improve of academic resources in Nigeria further magnifies AI’s
healthcare and cut costs. AI determines the most economical contribution, making learning opportunities available to an
and successful treatment regimens by examining patient data. expanding segment of the population.
When financial limitations make it impossible to follow a
prescribed course of treatment, it can also recommend  Access to Resources
substitute treatments. AI also makes it possible to repurpose Artificial intelligence (AI) might offer greater access to
generic or off-patent medications, which reduces the expense of socio-economic resources, information, and participation,
creating new therapies. When combined, these strategies thereby empowering more Nigerians, eliminating wealth
enhance the effectiveness and quality of services while assisting inequalities, and mitigating the current pattern of rich elites and
in the reduction of healthcare costs. the powerful keeping other citizens in a state of perpetual
dependence. Agricultural innovations resulting from AI
VII. AI IN EDUCATION illustrate such access (Ogbuju, et al., 2025).

Nigeria's socio-economic development could be Despite considerable impediments in infrastructure,

revolutionized by artificial intelligence (AI). Adoption of AI policy, ongoing socio-political turmoil, and the internet and
technologies that improve learning experiences and resource mobile operators, many Nigerians still engage with AI services.
accessibility presents opportunities for notable advancements, One example, Kudi AI, serves as a personal banking assistant
particularly in the education sector (ifeanyi, et al., 2025). facilitating financial transactions through natural language
processing through Messenger. Offering the service through
Emerging intelligent systems enable the creation of Facebook Free Basics ensures no data charges, widening
personalized learning plans tailored to individual student accessibility (Smith & Neupane, 2018). Nonetheless,
profiles (Mallik & Gangopadhyay, 2023). These architectures rudimentary governance of technology and the enduring digital
analyze learner interests, habits, styles, and performance to divide complicate matters still further.
recommend targeted content. As a result, students maintain
motivation and achieve improved academic outcomes. Such VIII. AI IN FINANCE
adaptive educational services also lighten workload pressures
for instructors and educational systems. Artificial intelligence (AI) holds great promise for
spurring financial inclusion through automation, data analytics,
Intelligent chatbots provide interactive platforms for and personalization. AI-driven innovations, both in current
students to ask questions and engage in discussions. applications and with all of the emerging future technologies,
Information retrieval algorithms furnish the required data with provide significant opportunities to companies and improve the
high precision and relevance (Spasibukhov, 2025). This user experience of financial services (Danielsson & Uthemann,
conversational support allows learners to engage in immediate, 2023).
on-demand exchanges with their virtual assistants from
anywhere. As the financial world becomes increasingly digitalized,
AI could well become the most critical transformative factor in
There is the opportunity to grant students and the general the digital era. Today, AI in finance takes many forms,
public low-cost access to educational materials otherwise including personalized and automated financial advice, fraud
difficult to obtain. By curating authoritative electronic detection, AI-assisted decision-making, and algorithmic equity
resources through intelligent filtering, it becomes feasible to trading. AI algorithms can recognize patterns in records, bonds,
offer digital copies to local institutions and industries at and derivative prices, and learn from them to help banks and
minimal expense. The availability of affordable, locally investors manage risks and glucose performance more
effectively.

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Owing to the need for more efficiency, many banks are innovation is also moving forward. For example, Nigeria's
integrating FinTech into their services to provide customers national domestic card scheme, AfriGo Pay, started in January
with greater choice, flexibility, and control. AI, a branch of 2023 and has already given out more than 3 million cards. This
FinTech that specializes in machine intelligence, is encourages a cashless economy with cheaper ways to make
predominantly used in investment banking (Costa, 2025; Kou, transactions.
2025; Manta, 2025).AI-powered chatbots help customers with
inquiries via text or web chat, and AI systems enable Interswitch, the long-established payments infrastructure
personalized digital experiences by leveraging conversational provider behind Quickteller and the Verve card scheme, and
data to better understand customer preferences. Kuda, a digital-only challenger bank worth $500 million that
offers neobank services to millions of customers, are two key
AI also serves as an important tool to address players in this sector. These new ideas show that Nigeria is
ESG)criteria, a key challenge for banks seeking a competitive becoming a major fintech hub on the continent, filling in the
edge in an environment with limited resources and evolving gaps in access, ease of use, and financial empowerment.
priorities (Xu, 2024). AI can process ecological data to assess
climate-related risks, monitor social and governance data such  Risk Management
as labor practices and corporate governance, and detect non- Artificial intelligence (AI) is mission critical to businesses
compliance with ESG standards both within banks and among worldwide because of its potential to enhance processes, reduce
clients. Additionally, AI enhances customer engagement and expenses, and improve accuracy (Gill, et al., 2022).
personalization related to ESG initiatives. Nonetheless, AI also raises serious concerns, including the need
to protect human values. Common worries encompass
 Fintech Innovations widespread job losses due to automation. Studies estimate that
FinTech—an acronym that blends “financial services” 22% to 49% of jobs in the global economy and developed
with “technology”—is changing how individuals and countries might be lost as a result of digitalization and
organizations manage their finances. FinTech applications automation. A European Parliament study from 2016 presents
already automate processes, facilitate peer-to-peer transactions, a more optimistic and nuanced outlook. Many occupations
secure identity, and augment investment decisions (Costa, requiring social skills are less vulnerable, whereas routine tasks
2025). In developing economies, FinTech’s disruptive are expected to be increasingly performed by machines.
potential could be profound because it can bridge existing Surveys reveal that a significant segment of the population
infrastructure gaps. In Nigeria, many persons continue to “farm believes digitalization will cause more job losses than new
their cash” in remote villages, storing it in homes rather than opportunities, with many anticipating greater social isolation
banking it, and dubious counterparts routinely intercept funds due to technological changes (Walz & Firth-Butterfield, 2019).
when it is transferred across distances (Saleem & Mathew,
2022). FinTech innovations could, therefore, enable access to These challenges call for effective risk management
financial services for a broader range of the population. strategies when employing AI in business operations.
Uncertainty and inadequacy of data can lead to decision bias,
Nigeria's lively fintech scene keeps driving economic resulting in ethical problems. Management failures may also
change and making it easier for everyone to access financial give rise to social risks such as unemployment. However,
services. Flutterwave, Africa's most valuable fintech, is leading incorporating a risk management feedback loop can
the way. It processes more than $16 billion in transactions substantially reduce algorithmic, technological, and data risks,
every year across 34 countries and makes cross-border thereby diminishing social risks (Guan, et al., 2022).
payments easy. Moniepoint, a fintech that focuses on
businesses, is now a unicorn with a valuation of more than $1 IX. AI AND EMPLOYMENT
billion. This is thanks to a $110 million funding round that
helps it expand its services in digital payments, credit, FX, and Artificial intelligence has already begun changing how
SME banking. It processes more than 800 million transactions work is done in many sectors of the economy (Ifeanyi, et al.,
worth more than $17 billion every month. (Vanguard News, 2025). While AI creates new jobs, it also threatens to eliminate
May 15, 2025). some occupations. Proactive efforts on skills development and
related areas can help the workforce prepare for a smooth
Stripe bought Paystack for more than $200 million in transition and the opportunities ahead.
2020. Paystack handles payments for tens of thousands of
businesses in Africa, both online and in person (TechCrunch, Automation technologies have already displaced many
2020, October 15). PalmPay, on the other hand, has quickly jobs in manufacturing and other sectors of the economy.
gained 35 million registered users and about one million small However, artificial intelligence technologies may have a less
and medium-sized businesses (SMEs) by leveraging severe impact on employment than in the past, since, unlike
smartphone users and forming strategic partnerships with many previous technologies, AI improves workers’
device makers. OPay is still a strong player, providing a full productivity rather than substituting for them entirely. As a
range of options for both consumers and businesses. Public general-purpose technology, AI can enhance many productivity

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tasks, thereby enabling workers to shift to higher value-added Automated driving technology greatly enhances transport
activities (Georgieff & Hyee, 2022). efficiency. Truck drivers will still be needed to oversee vehicle
behavior and handle unforeseen events. Even if driverless
Based on an in-depth assessment of the activities involved technology eliminates a large share of existing jobs, the
in 350 occupations and the state of AI technologies in the near expanded freight volume will create a sufficiently large pool of
future, 14% of occupations analyzed are highly exposed to AI, ancillary employment in maintenance, logistics, insurance, and
as about 70% of their constituent activities are likely to be infrastructure development. Like electricity, AI constitutes a
automated in the future (Wang, et al., 2024). Most of these general-purpose technology with pervasive impact rather than
occupations are low or medium-low skilled and tend to involve a standalone product. For firms and workers to harness AI
predictable physical activities. By contrast, 32% of occupations effectively, learning and experimentation are essential. During
have a low exposure to AI, including occupations requiring the transition phase, labour demand can therefore increase
creative, social, and managerial intelligence or the use of alongside AI adoption (Bessen, et al., 2018). The demand for
complex perception and manipulation tasks, where progress is AI-savvy talent has already outstripped supply in Nigeria’s
likely to be slower, also given the limited progress of AI in growing digital economy.
handling non-stationary environments or performing abstract
tasks. Employment growth is often positively associated with AI
diffusion. Firms with a corporate AI stance that selectively
Interactions with AI systems may also change how certain exploits the technology for advanced objectives are especially
key activities are performed, creating scope for pooling well-positioned to increase headcount. Conversely, when AI
complementary skills and improving the overall skill content of merely substitutes for physical or intellectual labor, the
occupations. At a regional level, AI may create additional jobs technology hurts employment prospects. The interplay of AI
in R&D and creative activities, while the construction and and labor points to the primacy of skill formation. Both workers
mining sectors are more likely to be adversely affected. and entrepreneurs require new competencies to compete
effectively in an AI-intensive environment. Skill-building is,
 Job Creation vs. Job Displacement therefore, a central theme of the Nigerian AI policy framework.
Artificial intelligence (AI) presently occupies center- Developing robust education and training programs constitutes
stage as a key enabler of socio-economic transformation. It a critical medium-term imperative for safeguarding inclusive
already affects multiple industries, ranging from healthcare, development (Shittu, et al, 2024).
education, agriculture, to finance. As businesses increasingly
rely on automated intelligent systems, the technology is People in Nigeria are worried about AI taking their jobs
reshaping employment in profound ways (Bughin, 2023). The because it could automate routine tasks in fields like banking,
widespread fear that AI will lead to massive job destruction is retail, transportation, and customer service. A lot of workers
undeniable. AI’s task automation capability lends credibility to are worried about losing their jobs in an economy that already
this narrative. Companies that substitute equipment for labor has high unemployment. AI promises efficiency and
will retrench employees. A review of firms that have productivity but the fact that not everyone has digital skills
implemented AI, however, reveals a more nuanced interplay. makes people even more worried about being left out. Experts
Rather than suppressing employment, AI adoption often say that automation could make inequality worse if there aren't
accompanies workforce expansion. AI naturally creates proactive policies, reskilling programs, and digital education
multiple employment avenues from consulting and system that includes everyone. To ease these worries, the system needs
integration to staff upskilling and data labeling. to find a balance between using AI and developing a workforce
that puts people first Al-Anyanabo, 2024).
Firms that deploy AI for product innovation are more
likely to increase employment than firms that do not adopt the  Skills Development
technology. Adoption also stimulates related economic The diffusion of AI systems is influencing the nature of
activities and generates fiscal revenue; the government may work and the skill profile of job seekers, although the direction
expand the public sector workforce accordingly. If companies and amplitude of the effects are ambiguous. AI is replacing
simultaneously pursue labor retrenchment and revenue- routine and repetitive tasks, alongside specific cognitive roles,
enhancing AI deployment, the final employment figure may but also creates new opportunities requiring additional skills.
still be positive, provided the adoption effect dominates. Wider These new occupations and the related skills and specialization
cross-country evidence parallels the firm-level results requirements should be examined to understand the complex
(Georgieff & Hyee, 2022). While the aggregate link between relationship between emerging technologies and the labor
AI exposure and employment growth is ambiguous, a notable market, as well as the skills required. Skill diversification
positive relation emerges in occupations that depend heavily on remains an indispensable factor complementing digitalization
computers. Increasing productivity almost inevitably expands and can reduce individuals’ displacement risk caused by AI.
employment in related or complementary sectors. Long-haul Some digital skills, such as programming and software design,
trucking provides a good example. reduce the displacement risk that AI produces, and individuals

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who possess these skills can even benefit from the reallocated stage, particularly regarding the future career plans of students.
labor force (Chen, et al., 2022). Skill profiles of AI-exposed occupations are much more
diversified than those of automation-exposed occupations,
In addition to the displacement on the labor market, which can be explained by the strong complementarity
studies on economic history have shown that newcomers need introduced by AI (Stephany & Teutloff, 2022). The maturing
additional skills and that the new task descriptions need phase of the AI revolution, therefore, promises to become a very
consideration when forecasting the emerging challenges different process of fundamental change than previous
presented by AI. Recommendations can be made at the current technological shocks, primarily driven by automation.

Table 1 Thematic Findings on AI in Nigeria

Theme Key Findings & Trends
1. Growth of the  Agriculture: AI supports precision farming, supply chain optimization, yield monitoring, and
Economy & Sectoral postharvest reduction, boosting efficiency and yields.
Productivity  Healthcare: Tools like ADVISER Optimiser improved vaccine targeting in Oyo State, increasing
uptake in thousands of families.
 Finance & Services: AI-enabled chatbots and fraud detection strengthen financial inclusion and service
efficiency.
 Trend: AI-driven efficiency gains are spreading gradually across key sectors with pilot-level successes.
2. Skills, Education &  National Strategy: The 3MTT program aims to train 3 million Nigerians in digital/AI skills by 2027,
Workforce with thousands already enrolled. NGO & Startup
Development  Training: Elite Global AI trained 30,000+ youths in AI skills as of 2024, targeting 1 million by 2030.
 Education Innovation: LLM-based tutoring pilots are underway in secondary schools.
 Trend: Rapid expansion of human capital development with both formal and informal AI learning
pathways.
3. Language, Culture  Digital Divide: Persistent gender and rural–urban gaps limit equitable access to AI.
& Inclusion Equity  Language Inclusion: CDIAL’s Indigenius platform enables communication in 180 African languages,
enhancing access and preserving culture.
 Gender-focused Outreach: Groups like Tech Herfrica boost rural women’s digital literacy and market
access, raising incomes by ~50%.
4. Governance, Ethics  Policy Development: The National AI Strategy (Aug 2024) sets out AI’s role in multiple sectors, data
& Regulation privacy, regulation, and infrastructure plans.
 Ethical Concerns: Key risks include bias, privacy breaches, job losses, and overdependence on
technology.
 Global Context: 'AI-as-aid' frameworks raise sovereignty and fairness concerns in the Global South.
5. Challenges &  Infrastructure: Poor connectivity, limited compute capacity, and unreliable electricity remain
Structural Barriers constraints.
 Skills Gap: Reskilling is slow, while displaced jobs increasingly require advanced technical expertise.
 Inequality: AI development is concentrated in urban centers like Lagos, widening regional and socio-
economic divides.

X. POLICY FRAMEWORK FOR AI late February 2023, the ministry unveiled the national AI policy
DEVELOPMENT and framework. The core policy thrust includes developing an
AI ecosystem, skills, and partnerships; promoting ethical, legal,
The Nigerian government acknowledges artificial and responsible AI use; and encouraging innovation. The
intelligence (AI) as a major policy thrust capable of propelling framework identifies four thematic clusters—policy
the country forward. In 2019, Nigerian communications formulation and legal review; governance, ethics, equity, and
minister Isa Ali Pantami highlighted the need to establish an inclusion (GEEI); development and showcase; and awareness
environment that promotes AI for national development but and capacity-building—that establish a template for AI
stated that “to date, no known, standalone and coordinated adoption across sectors.
national approach exists to leverage AI in transforming
Nigeria” (Diallo, et al., 2024). This policy vacuum delays Although Nigeria’s national AI policy and framework
access to the advantages of AI as first-mover countries rush to constitute a significant step forward, several challenges require
adapt. Accordingly, the Nigerian Ministry of Communications consideration. One widely cited concern about AI involves the
launched an inclusive nationwide approach to address this proliferation of biased datasets and algorithms calibrated on
space. Ahead of the AI-themed Digital Africa Convention in unrepresentative, non-inclusive data. Insufficient efforts to

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develop AI systems with a commitment to fairness and non- innovation. Governments in Africa are aware of the urgency of
discrimination risk perpetuating historic inequalities and raising the continent’s technology capacity, but many countries
creating new ones both within nations and between them. Yet, still lack comprehensive AI strategies… The adoption of AI-
governance mechanisms remain far from adequate to address based technologies raises important questions about what types
these issues. Of particular concern is the inability of of regulations should be put in place and whether new
governmental frameworks to ensure that inadequate, institutions should be created to address the associated
incomplete, or biased inputs do not turn into harmful and challenges.
exploitative outputs (Naidoo, et al., 2022). Nigeria also lacks
the full regulatory frameworks common elsewhere. Although Despite the promising outlook, policymakers should be
the National Data Protection Regulation adheres to mindful that these technologies raise important regulatory
international best practices and stipulates frameworks for data issues that merit serious consideration. Because AI-based
privacy protection, regulations on intellectual property rights, systems “learn” from the data they are given access to, it is
liability, transparency, accountability, and other issues require crucial to have a robust set of controls in place to prevent
assessment and improvements. negative externalities and avoid the long-term accumulation of
risks; and unfortunately, the predictability of the consequences
 Government Initiatives of AI technologies is low due to the complexity of the
Recognizing artificial intelligence (AI) as an algorithms and their ever-increasing autonomy (Abrardi, et al.,
indispensable pillar for the Fourth Industrial Revolution, the 2019).
Nigerian government endeavours to leverage it with the
ultimate goal of socio-economic transformation. These efforts XI. ETHICAL CONSIDERATIONS IN AI
align with the ambition to position Nigeria among the top 10
economies globally and elevate 100 million citizens beyond the Ethical considerations hold substantial importance in AI
poverty threshold by 2030 (Majeed, et al., 2025). To this end, practice, particularly in areas where the technology is evolving
the National Artificial Intelligence Policy and Strategy and regulatory frameworks may be inadequately developed. AI
comprehensive framework is crafted in line with international algorithms often display inadvertent biases that negatively
best practices and socio-economic realities. The government is affect marginalized social groups; discriminatory AI algorithms
currently engaging the National Assembly to promulgate the intensify pre-existing inequalities. This is especially concerning
National Artificial Intelligence Bill, intended to establish a legal in societies afflicted by social inequalities and biases, as
basis for AI development and governance. algorithmic biases often violate human rights.

As AI increasingly permeates every facet of human Another important moral issue is invading someone's privacy.
endeavour, Michelle (2020) underscores the urgency in Modern AI systems use a lot of data, and if this data is not
managing its complexities and challenges. Accenture reveals handled properly, it could be used for illegal purposes or stolen.
that a modest 1% growth in AI adoption within Nigeria’s Because modern AI architectures are complicated and spread
banking sector could augment the country’s gross value out, limited access is easier to manipulate, which hurts the
addition by up to 29 trillion naira by 2035, demonstrating the privacy of both individuals and society as a whole. Societies
sector’s pivotal role in socio-economic development. Applied must therefore create new standards that can regulate AI
Science & Technology suggests that in Nigeria, AI adoption is methods before they become widely used (Dent, 2020).
critical for repositioning the banking industry as a
transformative force propelling the economy toward vision  AI Bias
2030. The National Digital Masterplan 2022-2032 envisages Since bias has been established in Ai systems, there is a
transformative impacts of AI on agriculture and healthcare, need to address it long-term. The goal of fairness in AI is to
aiming to address pressing challenges and foster sustainable ensure that all groups have the same chances of achieving
socio-economic development. Emulating Kenya’s proactive positive outcomes, which supports the principles of non-
stance, a dedicated AI taskforce was instituted in 2018 to discrimination (Bohdal, et al., 2023). "Equalized odds" make
formulate a national AI strategy, with the 2022 plan this official by requiring the same rates of true positives and
recommending legislation to establish an enabling regulatory false positives across different demographic groups. A less
framework enhancing digital competitiveness, as emphasized strict version requires similar distributions of positive
during the 2023 Presidential directive. These policy precedents outcomes. These standards help people judge fairness in
inform Nigeria’s approach to AI resource management and different situations.
governance. (Diallo, et al., 2024)
Smaller worst-case errors mean better fairness. A stricter
 Compliance Challenges standard looks at how well a system can handle changes in data
Rapid AI-based technologies development presents a new distribution, which is important for real-world deployments that
set of regulatory challenges for governments.. Regulatory have to deal with different data sources, like sensors that may
frameworks are essential to promote trust in AI technologies not all function the same way. In this case, enforcing fairness
and set clear rules of the road that incentivize investment and stops discrimination that comes from differences in equipment

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or the environment. The social aspect includes high-stakes It is noteworthy to highlight that Nigeria data protection
cases where uncorrected bias leads to systemic socio-economic laws are still evolving and not on par with those in the EU,
marginalization. This is because biased decisions and Canada, or South Africa. The laws on Data Protection are soft
information make differences worse and break down social codes with no legal authority. A section of the Nigerian
cohesion over time. Constitution guarantees citizens’ right to privacy, but with no
enforcement mechanisms. Furthermore, the constitutional
In discussions of fairness and bias, "conservative AI" privacy right applies exclusively to citizens, leaving non-
refers to technologies that support current social orders by not citizens without clear protection. Specific privacy legislation is
questioning unfair systems (Zajko, 2020). Algorithmic absent, as is dedicated legal regulation of information and
mechanisms devised for oppression have catalyzed initiatives communication technology data security (Akindele, 2017).
aimed at enhancing fairness and mitigating bias; however,
frameworks rooted in social theory expose unexamined forms XII. CASE STUDIES OF SUCCESSFUL AI
of conservatism. Interdisciplinary approaches foster the IMPLEMENTATION
identification of novel issues; although remedies for recognized
societal biases are suggested, analyses frequently overlook the Case studies provide concrete instances of AI's
origins of structural inequality or regard discrimination arising deployment between explored dimensions and the actual socio-
from pervasive social patterns as historical certainties. This economic realities of developing countries. Nigerian startups
kind of neglect makes it harder to see the bigger picture, and it such as Data Science Nigeria, InstaDeep, and Kudi.ai develop
limits the technical goals of fairness to mathematical AI solutions relevant to agriculture, healthcare, finance, and
formalisms that don't connect to real life. So, it is a mistake to education. Nigeria also benefits from AI partnerships with
think of fairness and justice as separate from the social context. external entities, including Microsoft, Google, and IBM, which
Sociotechnical perspectives enhance understanding and inform provide consulting, cloud services, business support, and
remediation strategies; however, the incorporation of a social educational programs (Trivedi, et al., 2019).
dimension is inadequate without systemic involvement (El
Mimounl, et al., 2025).  Local Startups
AI startups are playing a significant role in Nigeria’s
 Privacy Concerns national artificial intelligence ecosystem development. During
Privacy issues are a major problem at the crossroads of the COVID-19 lockdown, following the closure of many core
data protection law and artificial intelligence (AI), and they economic sectors, numerous AI-fuelled technology startups
affect both people and the economy. AI presents particular emerged in Nigeria to address the disrupted supply of essential
challenges as algorithms generally necessitate access to services (Okoro Ajah & Ononiwu, 2021). For example,
comprehensive patient data, which is frequently utilized in uLesson offers remote AI-powered learning for primary and
dynamic manners over time. It is also important to know the secondary school students studying the West African Senior
location of the servers that store and access patient information, School Certificate Examination. Notable startup failures in
as well as who owns them. This suggests that regulations Nigeria include OLX, which ceased operations in 2018 after an
should require data to be kept in the same place where it was eight-year presence, and Easy Taxi, Nigeria’s first online taxi
created. When institutions work together to uphold data network, which shut down in 2016. Startups face extreme
protection standards, strong privacy protections become uncertainty during early development phases, and changes in
possible. conditions during this gestation period make survival highly
challenging. Many introductory software tools, such as
In response to apprehensions about corporate mishandling TensorFlow, are offered free under Open Source licenses
of patient information, groups demand oversight of big data (Bessen, et al., 2018). Large firms may possess advantages
health research and related technologies. These issues from economies of scale or network effects when fixed AI
undermine public trust, as many individuals remain reluctant to development costs are substantial.
share health data with technology firms or doubt the adequacy
of security measures. Despite the controversy, some hospitals Startups tend to sell disproportionately to mid-sized firms,
continue to share non-anonymized patient records with providing more affordable AI solutions than in-house
commercial entities, thereby attracting increased regulatory development. Data protection regulations can also elevate entry
scrutiny and litigation risk. Healthcare data breaches have barriers for startups; higher protections for European customers
escalated in numerous countries, and advanced algorithms can are particularly impactful. Large firms invest more heavily in
re-identify individuals even in anonymized datasets. Moreover, AI than startups, notably within the transport and logistics
data collected by consumer genetic-testing companies sector, likely related to high entry costs. Current AI
potentially enables identification of a substantial fraction of the applications primarily augment, rather than replace, human
population, with ongoing increases anticipated (Murdoch, capabilities; many customers use AI to create jobs in
2021). management, professional, sales, and marketing domains.
Employment declines are observed in service, clerical, and

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manual occupations. The effects on employment could become necessary foundation upon which an economy is built. Proper
more consequential over a longer horizon. design and provision of urban infrastructure reduce production
cost, enhance production efficiency, and encourage competition
 International Collaborations within industries so that maximum output per unit of input is
International collaborations are a key component of realized, which in turn increases income per capita and general
Artificial Intelligence adoption, particularly within emerging standards of living. Governments and administrations that do
economies such as Nigeria. Such partnerships allow the country not recognize these facts find it difficult to reduce or eradicate
to absorb relevant foreign technologies, develop its domestic AI poverty and subsequently produce stagnated economic growth.
capabilities, and introduce innovative economic growth models
(Tang, et al., 2022). Several Nigerian startups are working to  Funding Limitations
leverage these international relationships to build and enhance In Nigeria, there is artificial intelligence (AI). Many
AI-based solutions within the local context (Tang, et al., 2021). universities don't have the right tools to do high-quality AI
However, there are a number of real-world limitations that call research and analyze complex data. This lack of money makes
for more research on the broad international collaboration it much less appealing for academics to continue their studies
needed to optimize AI's revolutionary effects. or work on AI-related projects. Consequently, a limited number
of universities in Nigeria have effectively conducted significant
XIII. CHALLENGES TO AI INTEGRATION AI research (Gwagwa, et al., 2021).

The absence of sufficient digital infrastructure to facilitate XIV. FUTURE PROSPECTS OF AI IN NIGERIA
AI development and adoption significantly limits Nigeria's
successful AI adoption (Lu, et al., 2022). This deficiency New AI technologies have a lot of potential to help
shows up as slow data speeds, limited Internet access, a lack of Nigeria solve its biggest problems. If everyone in the country
modern facilities and technical expertise, and a failure to used AI, the GDP could grow by double digits over the course
adequately integrate appropriate AI tools into current of a decade. In the short term, ongoing activities would have
infrastructure and organizational procedures. The lack of positive effects. Nigeria needs to deal with a number of
common standards for AI-related systems and products makes important issues and put in place a wider range of enabling
it more difficult for SMEs and startups to fully adopt the mechanisms in order to grow its operations and take advantage
technology. Issues with data quality also present difficulties, of AI-driven development. These solutions will not only
such as limited availability, inconsistent standards, benefit the country but could also be extended to other
incompatible formats, poor integration, a lack of transparency, developing nations with similar economic environments and
and generally poor quality. opportunities (Gwagwa, et al., 2021).

These problems are particularly acute given that many  Emerging Technologies
companies continue to employ non-digital or unstructured data New AI technologies will significantly impact the overall
sources. Weighing the cost and effort of procuring and growth and prosperity of all nations in the coming decades.
processing high-quality digital data for AI applications against Given Nigeria’s young and rapidly urbanizing population, such
the benefits of implementation often deters organizations from technologies will inevitably have a marked influence on the
adopting AI solutions. country’s socio-economic development (Thaci, et al., 2024).
Consequently, intelligent systems can undertake activities such
 Infrastructure Deficiencies as problem-solving, pattern recognition, and language
Nigerian infrastructural challenges are well known. understanding without explicit programming. According to the
Urban spaces exemplify the tensions that have emerged in the UK Office for National Statistics, AI systems are considered
midst of rapid transformation (Okoro, et al., 2016). Impressive distinct from ordinary computing systems because they extract
urbanization rates have stimulated multiple infrastructural and rules for actions from data with minimal human intervention.
institutional challenges in Nigeria. Infrastructure is almost in a
state of collapse in the light of increasing spatial expansions that Computer vision, voice recognition, natural language
provide spillovers into the outskirts and beyond the perimeter. processing, driverless cars, and predictive analytics are a few
There is a huge deficit in the housing stock. Urban critical AI technologies in use today (Chinnaiyan, et al., 2025).
infrastructure is crucial for optimal performance of the In Nigeria, innovations are revolutionizing labor-intensive
economy through output, employment motivation, and overall sectors such as agriculture, for example, through improved
wellbeing. It is the basic prerequisite for the promotion of trade disease detection and automated irrigation scheduling.
and development of industries, health facilities, (Gwagwa, et al., 2021, Abrardi, et al., 2019)
communications, and urban amenities in general.

Urban infrastructure is fundamental for regional

economic activities and the movement of goods and services.
Provision of adequate urban infrastructure is a vital part of the

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 Long-Term Economic Impact scores can be heavily weighted in some areas, such as data and
“Applications of artificial intelligence will generate a infrastructure, while hiding weaknesses in other areas, such as
global economic impact of $15.7 trillion by 2030” (PwC, 2017). data regulation. Kenya exhibits a comparable dynamic,
One trillion dollars will come from increased productivity, $6.6 characterized by a low governance score alongside indications
trillion will be generated through consumption-side effects, and of a strategic initiative aimed at fostering an environment
the remaining $7.1 trillion will be driven by the impact of conducive to AI development. (Diallo, et al., 2024)
increased product personalization (Andersson Lipcsey, 2023).
A permanent increase of 14–30 per cent in gross domestic  Lessons from Developing Countries
product can be anticipated for most developed economies, Developing countries can draw lessons from AI
while the impact for developing countries is expected to remain deployment examples to inform their trajectories (Okorie,
below 10 per cent. Countries that have an export basket skewed 2018). One opportunity lies in enhancing smallholder
towards manufacturing and services will experience the largest agriculture and food production systems. Understanding
boost. The transition from an unautomated economy could innovation inputs, outputs, and diffusion pathways is essential
gradually take around 75 years, following a trajectory similar to for directing investment and developing appropriate
previous technological disruptions. The most disruptive technologies. AI offers tools for mapping agricultural
discontinuity would arise beyond 2040, from the development innovation systems and harnessing data to understand key
of self-replicating machines, an event potentially capable of pathways (Gwagwa, et al., 2021). It can also connect farmers
triggering almost instantaneous automation. At the same time to new markets and knowledge sources without resorting to
horizons, continuing progress in AI could create scenarios costly travel.
offering the possibility of human-level general intelligence
(Raman, et al., 2025). Projections indicate a potential 30- Nevertheless, developing countries must upgrade their
percent increase in long-run economic growth by 2100. data infrastructure to manage big data for effective machine
learning. Without doing so, some nations risk adopting AI
The developments of artificial intelligence in Nigeria are solutions that do not address their specific needs. For African
closely aligned with global trends. Various artificial countries to fully take part in global supply chains and export
intelligence applications have been utilized throughout Nigeria, trade, they need to negotiate trade rules effectively, strengthen
ranging from large companies and financial institutions to their regulatory frameworks, and mitigate the risk of being
government bodies, the armed forces, and the mass replaced. The RadAI network has found a number of ethical
transportation sector. Although artificial intelligence issues related to decision-making and future ethics related to AI
technology has not yet been incorporated into all spheres of the development. To make sure that automation has a positive
Nigerian economy, every sector in Nigeria is expected to adopt effect without displacing families or hurting social cohesion,
the technology in the near future. governance structures must be in line with African cultural
values.
XV. COMPARATIVE ANALYSIS WITH OTHER
NATIONS  Best Practices from Developed Nations
Africa's experiences with AI demonstrate the continent's
Nigeria can learn from how both developing and strategic implementation of emerging technologies to tackle
developed countries have dealt with AI development. The social and economic issues (Gwagwa, et al., 2021). Nigeria can
problems that other developing countries are having could help. learn from other countries at a similar level of development to
Numerous reports have emphasized AI readiness and adoption avoid making the same mistakes and copy what works. Nigeria
in larger economies, including Nigeria and South Africa, as can learn from the ways that other countries have used AI to
well as in technologically advanced nations like Rwanda. make big changes in their economies and societies. This will
Kenya and Mauritius are two other countries that have recently help Nigeria adopt AI more quickly. The country can look to
improved their digital infrastructure and AI-enabling successful strategies used in other places to solve problems like
capabilities. They are also good examples. A lot of African a shortage of skilled workers or inadequate infrastructure.
countries are using AI to help with important socio-economic Developed countries have also built strong connections
development needs (Kouty & Lemma, 2025). between established institutions, research groups, and private
businesses. These connections are the foundation of their AI
The legislative frameworks analyzed in connection with transformation, and they have stressed this as a practical
these initiatives include formal efforts like national AI approach.
strategies or digitization plans, as well as more general
activities that show real progress toward technological Nigeria is at the nascent stages of AI adoption. To
development goals centred on AI. Changes in policy that are improve both speed and quality, investments in people must
meant to improve parts of the national innovation ecosystem happen alongside improvements to infrastructure. But progress
have led to big jumps in AI readiness scores. Most of these is being slowed down by either a policy framework that hasn't
countries are in the middle of the pack globally, but they are yet dealt with strategic areas or the difficulties that come with
near the top of the continent. The case of Mauritius shows how reforming institutions. Identifying key action areas can help

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solve this problem with resources. A look at examples from [5]. Amiri, S. M. H., Islam, M. M., & Akter, N. (2025).
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