Automation vs Job Creation: Artificial Intelligence’s Role in Nigeria’s Labour Market

Artificial Intelligence (AI) is reshaping industries across Nigeria, bringing both optimism and concern to the labour market. While automation is increasing efficiency and productivity, it also poses a significant challenge: the potential displacement of millions of workers. The key question is whether Nigeria’s workforce is adequately prepared to transition into the emerging AI-driven economy.

As a country with one of the largest youth populations in Africa, Nigeria has the opportunity to harness AI as a tool for economic growth. However, without proper policies and investment in digital skills, AI could deepen unemployment and economic disparity. How can Nigeria balance automation and job creation?

The Risk of Job Displacement
AI is automating routine tasks in industries such as manufacturing, banking, retail, and customer service, raising concerns about job losses.

A 2023 PwC report estimates that AI could contribute $15.7 trillion to the global economy by 2030. However, the International Labour Organization (ILO) warns that automation could put 40 percent of jobs in sub-Saharan Africa at risk, particularly in labour-intensive sectors.

Industries most vulnerable to AI-driven automation include manufacturing, retail and banking, logistics and transportation, autonomous vehicles and AI-powered supply chain management could limit the need for drivers and warehouse workers.

Nigeria’s high youth unemployment rate and informal economy add complexity to this challenge. If AI adoption accelerates without proactive workforce planning, millions of jobs could become obsolete, worsening economic instability.

The Potential for Job Creation

While automation is eliminating certain jobs, AI is also creating new employment opportunities. The rise of AI-driven industries has led to increased demand for skilled professionals in data science, cybersecurity, cloud computing, and AI ethics.

Fintech and Agritech are two major sectors where AI is driving job growth:

• Fintech Innovation – Nigerian startups like Flutterwave and Paystack are leveraging AI for fraud detection, personalised banking, and automated customer support.
• Agritech Transformation – AI-powered solutions like Hello Tractor (often called “Uber for tractors”) use machine learning to improve mechanised farming, creating jobs in agriculture technology.

Beyond these sectors, AI is opening new career paths in AI Governance and Regulation, Cybersecurity and Risk Management, E-commerce and Digital Marketing,

Bridging the Skills Gap

To fully harness AI’s potential without exacerbating unemployment, Nigeria must address its digital skills gap. According to the World Economic Forum, 85 million global jobs could be displaced by 2025 due to AI, but 97 million new roles could emerge in AI development, automation, and technology services.

Nigeria must act now to prepare its workforce. This requires a three-pronged approach:

Education Reform – AI, coding, and data analytics must become a core part of Nigeria’s school and university curricula. More investments are needed in STEM (Science, Technology, Engineering, and Mathematics) programs to prepare students for AI-related careers.

Vocational AI Training – Establishing AI-focused training centers can reskill and upskill workers in manufacturing, banking, and agriculture. Programs like Google’s AI for Africa Initiative should be scaled up to equip Nigerian youth with in-demand digital skills.

Public-Private Partnerships – Collaboration between government, tech companies, and financial institutions is essential to fund AI education, mentorship programs, and internship opportunities.
If these measures are not taken, Nigeria risks widening its unemployment gap instead of benefiting from AI’s economic potential.

Government’s Role in AI Adoption

For AI to drive inclusive economic growth, the Nigerian government must develop policies that promote AI innovation while protecting workers. Key policy actions should include:

AI Regulations and Ethical Frameworks – Develop clear AI governance policies to prevent workforce exploitation and ensure responsible AI use.

Tax Incentives for AI Reskilling – Companies investing in AI training programs should receive tax breaks to encourage workforce development.

Support for AI Startups – Funding and infrastructure support for AI-driven startups can accelerate local job creation and reduce reliance on foreign technology.

Countries like India and China have successfully managed AI’s impact by prioritising workforce reskilling. Nigeria must follow suit to remain competitive in the global AI economy.

The Path Forward
AI does not have to be a threat to employment if Nigeria takes the right approach. By investing in education, upskilling workers, and adopting AI policies that balance automation and job creation, the country can ensure that AI empowers rather than displaces the workforce.

Final Thoughts
AI is transforming how businesses operate, how industries grow, and how work is done. The question is no longer whether AI will disrupt jobs—it already is. The real challenge is how Nigeria will respond to these transformations.

By embracing AI innovation while investing in human capital, Nigeria can become a leader in AI-driven economic growth, ensuring that its workforce is prepared for the digital economy of the future.

About the Author

Amos Ogunola, PMP, is a Data Scientist and Project Manager who specialises in Artificial Intelligence, cybersecurity, and digital transformation.

He helps businesses leverage AI-driven solutions to optimise operations, enhance security, and drive innovation. Passionate about digital inclusion, Amos advocates for AI adoption in Africa while ensuring that technological advancements create sustainable job opportunities for underserved communities.