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 and sub-Saharan Africa's economic output by as much as 4% over the next decade, provided that governments enhance investment in digital infrastructure, skills development, and governance. This information was disclosed in a blog published 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 of the Fund’s African Department.

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

The IMF noted that AI's value lies in enhancing productivity rather than replacing jobs, and warned that Africa risks falling behind if AI adoption does not accelerate.