The rapid expansion of artificial intelligence (AI) could intensify employment challenges in Nigeria and other developing countries unless governments, businesses and educational institutions prepare workers for a changing labour market, the International Monetary Fund (IMF) and the World Bank have warned.
The warning comes as AI tools become increasingly capable of performing tasks traditionally handled by human workers, raising concerns about the future of entry-level jobs, routine office work and other occupations vulnerable to automation.
Speaking at an event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, IMF Managing Director Kristalina Georgieva said AI could affect approximately 40 per cent of jobs worldwide. Its impact could include improving some roles, reducing the value of certain skills or eliminating particular positions altogether.
For Nigeria, where creating sufficient productive employment remains a major economic challenge, the growing use of AI presents both an opportunity and a risk. While the technology could help businesses become more efficient and open new markets, it could also put additional pressure on workers who lack the skills needed to adapt.
The two international financial institutions are therefore calling for a more deliberate approach to AI adoption—one that prioritises productivity, practical applications and job creation rather than focusing solely on replacing human labour.
IMF Warns AI Could Reshape the Global Labour Market
Georgieva described AI as a major force that could gradually transform employment across the world, warning that countries must prepare before the consequences become more difficult to manage.
The IMF’s estimate that around 40 per cent of jobs globally could be affected does not mean that all those positions will disappear. Some workers may become more productive with AI assistance, while other roles could be redesigned or become less valuable as businesses automate certain tasks.
However, occupations that rely heavily on repetitive or predictable activities could face greater pressure as AI systems become more sophisticated and accessible.
The challenge is particularly important for workers entering the labour market. Entry-level positions often allow young people to gain experience, develop professional skills and progress into more senior roles. If AI reduces the number of these opportunities, inexperienced workers could find it harder to begin their careers.
Georgieva’s warning reinforces the need for countries to examine how technology is changing employment and ensure that workers have opportunities to acquire new skills.
For Nigeria, this means preparing students, graduates and existing employees for jobs that may require greater digital knowledge, adaptability and the ability to work alongside AI systems.
World Bank Urges Countries to Use AI to Create Jobs
World Bank Group President Ajay Banga has emphasised that economic development should lead to more employment opportunities and better livelihoods.
He argued that AI should be used to increase productivity and help businesses and public services expand, rather than being treated primarily as a tool for reducing their workforce.
Banga highlighted the potential of relatively simple, affordable AI applications that can be adapted to the needs of communities in developing countries. This approach, often described as “Small AI,” focuses on practical solutions that work within local budgets, languages and infrastructure.
For example, a small-scale farmer could use a mobile phone to photograph a diseased crop and receive guidance on possible treatment. The same technology could help the farmer access information about seeds, fertilisers, credit, insurance and markets.
In healthcare, AI-powered tools could assist frontline health workers in assessing patients and identifying cases that require attention from specialists.
Such applications could help people access useful information and services without requiring expensive or highly sophisticated systems.
The World Bank’s position is that AI can contribute to job creation when it helps businesses improve their services, reach more customers and increase productivity. The key is ensuring that technology supports economic activity and human development rather than deepening existing inequalities.
Nigeria Among Africa’s Leading AI Markets, but Major Barriers Remain
Nigeria has emerged as one of Africa’s important centres of AI activity, alongside Kenya and South Africa, according to the World Bank’s October 2026 Africa Economic Update.
However, the report indicates that AI adoption across the continent is still developing. Turning interest in the technology into widespread economic benefits will require improvements in electricity supply, internet access, digital education and the availability of reliable data.
These challenges are particularly relevant to Nigeria, where unreliable power and expensive connectivity can make it difficult for businesses, schools and individuals to use digital tools consistently.
Small businesses may also struggle to afford the technology, train their employees or identify practical ways to incorporate AI into their operations.
Without investment in these areas, the benefits of AI could remain concentrated among large companies and people with access to advanced digital infrastructure, leaving smaller enterprises and vulnerable workers behind.
The World Bank has identified agriculture, education, healthcare, finance, logistics and public administration as sectors where AI could help improve productivity.
In agriculture, for instance, digital tools could help farmers identify crop diseases, obtain weather information and connect with buyers. In education, AI could support personalised learning, while healthcare providers could use it to assist with basic assessments and referrals.
For Nigerian businesses, the challenge is to develop applications that solve local problems and generate economic value while creating opportunities for workers.
The Global AI Divide Could Leave Developing Countries Behind
The unequal distribution of AI infrastructure and expertise presents another concern for developing economies.
The World Bank’s Digital Progress and Trends Report 2025: Strengthening AI Foundations highlighted the concentration of AI development in wealthy countries. According to the report, high-income economies accounted for 87 per cent of notable AI models, 86 per cent of AI startups and 91 per cent of global venture capital funding for AI as of mid-2025.
This concentration gives wealthier economies a significant advantage in developing AI technologies, attracting investment and training specialised workers.
Developing countries, by contrast, risk becoming mainly consumers of products created elsewhere if they fail to invest in digital infrastructure, research and local expertise.
The report also highlighted gaps in basic digital skills and access to advanced computing infrastructure. Such disparities could make it harder for countries with limited resources to develop their own AI industries or adapt existing technologies to local needs.
For Nigeria, narrowing this gap will require investment in education, technology infrastructure and local innovation. Encouraging Nigerian developers and businesses to create solutions for domestic challenges could also help the country participate more actively in the global AI economy.
Retaining skilled workers will be important as well. If trained technology professionals leave for better opportunities abroad, the country could struggle to build the expertise required to support its own digital transformation.
Nigerian Workers Already Face Pressure From Automation
Concerns about AI and job losses are not limited to international financial institutions. Nigerian labour representatives have also warned that digital technologies and robotics are changing employment patterns.
The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) recently raised concerns about workers losing positions to automated systems.
Speaking during activities marking World Day for Decent Work in 2026, the association’s president, Fanimokun Adesina, stressed the importance of acquiring digital capabilities and learning to work with emerging technologies.
His comments reflect concerns in sectors such as banking and insurance, where automation has changed how organisations process transactions, handle customer requests and perform routine administrative tasks.
AI could accelerate these changes by enabling businesses to automate additional activities and process information more quickly.
However, technology can also create demand for new roles in software development, cybersecurity, data management, digital marketing and other fields.
The overall employment impact will depend on how quickly businesses adopt these systems, which tasks they automate and whether workers can move into new or redesigned positions.
For employees, developing digital skills and remaining open to retraining could improve their ability to adapt. Employers also have a role to play by providing training and helping staff understand how AI can support their work.
Why Education and Reskilling Matter for Nigeria
Nigeria’s ability to manage AI-related employment risks will depend partly on how effectively its education and training systems respond to technological change.
Traditional qualifications remain important, but workers may increasingly need additional capabilities that allow them to use digital tools, solve problems and adapt as job requirements evolve.
Schools and universities could strengthen digital literacy, practical technology training and critical thinking. Vocational institutions could also provide courses that prepare workers for changing requirements in manufacturing, agriculture, healthcare and other industries.
Businesses, meanwhile, can help employees develop skills relevant to their sectors rather than relying exclusively on external recruitment when new technologies are introduced.
Lifelong learning is likely to become increasingly important because the skills required for a job may change several times during a person’s career.
Government policy will also matter. Expanding affordable internet access, improving electricity supply and supporting technology education could help more Nigerians benefit from AI-related opportunities.
At the same time, policymakers will need to consider how to support workers who lose their jobs or require assistance transitioning into different occupations.
The objective should be to ensure that technological progress contributes to stronger productivity and better living standards, rather than leaving large sections of the workforce without realistic employment prospects.
AI Could Be an Opportunity If Nigeria Acts Early
The warnings from the IMF and World Bank do not suggest that AI will inevitably cause a jobs crisis in Nigeria. Instead, they highlight the risks of allowing technological change to advance without adequate preparation.
AI could help Nigerian businesses reduce costs, improve customer services and expand into new markets. It could also support farmers, teachers, healthcare workers and small enterprises that lack access to specialised expertise.
But these benefits will not automatically reach everyone.
Nigeria needs policies that encourage innovation while investing in the infrastructure, education and workforce development required to make AI useful across different sectors of the economy.
Businesses will also need to consider how they introduce automation, including whether they can retrain existing employees and create new roles as their operations change.
The central message from the IMF and World Bank is that countries should not measure AI progress only by how quickly they adopt new tools. They must also consider whether the technology improves productivity, expands opportunities and helps people earn a living.
For Nigeria, the challenge is to prepare workers for the changes ahead while ensuring that AI becomes a source of economic growth and job creation—not another obstacle for people already struggling to find decent employment.
