AI Could Boost Nigeria's GDP by 4% Over Next Decade

The International Monetary Fund (IMF) reported that artificial intelligence (AI) could potentially increase Nigeria's GDP by 4% over the next decade, contingent upon enhanced investment in digital infrastructure, skills development, and governance. This information was published in a blog on Tuesday, based on the IMF's departmental paper titled "Unlocking the Potential: AI in Sub-Saharan Africa," authored by Martin Schindler, Nikola Spatafora, and Andrew Tiffin from the Fund’s African Department.

The IMF cautioned that without significant improvements in preparedness, AI's contribution to the region's economy would be minimal, estimating only a 0.2% increase in GDP over the same period. The report emphasized the importance of this growth for Nigeria and other African economies, particularly in addressing the job creation challenge posed by a rapidly expanding workforce.

The IMF noted that AI's value lies in enhancing productivity across key sectors rather than replacing workers, with Nigeria already experimenting with AI applications that yield measurable benefits.