According to reporting by Vanguard News, the International Monetary Fund (IMF) and the World Bank have warned that artificial intelligence (AI) could worsen the jobs crisis in Nigeria and other developing economies unless governments and businesses take urgent steps to prepare workers and deploy technology to drive employment.
Speaking at the ‘Small AI: More and Better Jobs’ event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, IMF Managing Director Kristalina Georgieva described AI as a ‘slow-moving tsunami.’ Georgieva highlighted that approximately 40 percent of jobs globally could be augmented, downgraded, or eliminated by the technology, with varying impacts across different economies and occupations.
Focusing on Productivity and ‘Small AI’ Solutions
World Bank Group President Ajay Banga emphasized that economic development must translate directly into job opportunities, stating that the bank’s primary focus remains on employment. Banga argued that AI should be harnessed to raise productivity and create new jobs rather than merely replacing human labor.
Banga advocated for ‘Small AI’—practical, low-cost applications tailored to local languages, infrastructure, budgets, and specific regional needs. He illustrated how a farmer using a basic mobile phone could photograph a diseased crop to receive instant diagnosis, treatment advice, and access to seeds, fertilizer, credit, insurance, and market information. Similarly, in healthcare, frontline health workers could use AI tools to assess patients and coordinate specialist care.
Barriers and Opportunities for African Economies
The World Bank’s October 2026 Africa Economic Update identified Nigeria, Kenya, and South Africa as the leading hubs of AI activity across the African continent. However, the report noted that adoption remains in its early stages and advised that Africa’s immediate opportunity lies in adapting accessible AI solutions to tackle pressing local challenges.
Key sectors positioned to benefit from increased productivity through AI include agriculture, education, healthcare, finance, logistics, and public administration. Nevertheless, the report cautioned that infrastructure deficits—including unreliable electricity, limited digital skills, inadequate internet connectivity, and poor-quality data—could severely constrain AI adoption in Nigeria and neighboring nations.