By Damilola Samuel
Nigeria and other developing economies risk facing greater employment challenges as artificial intelligence reshapes the global labour market, the International Monetary Fund (IMF) and the World Bank have warned.
The institutions called for greater investment in workers’ skills and the development of affordable, locally relevant AI applications that can improve productivity and expand employment opportunities.
IMF Managing Director Kristalina Georgieva delivered the warning at the *Small AI: More and Better Jobs* event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, describing artificial intelligence as a “slow-moving tsunami”.
Georgieva said about 40 per cent of jobs worldwide could be affected by AI through changes in how work is performed, the downgrading of certain roles or the elimination of some positions.
She stressed the need for countries to prepare their workforces for the technology’s growing influence on employment and economic activity.
World Bank Group President Ajay Banga, meanwhile, said job creation must remain central to economic development, urging countries to explore how AI could support workers rather than simply replace them.
“The bank’s entire focus has to be on jobs,” Banga said.
He highlighted the potential of affordable AI tools to improve services across education, healthcare and agriculture, particularly in communities where access to advanced technology remains limited.
Under the approach described as “Small AI”, practical applications could be adapted to local needs, languages, infrastructure and budgets instead of relying exclusively on expensive, sophisticated systems.
Banga illustrated the concept with the example of a farmer using a basic mobile phone to photograph a diseased crop and receive guidance on treatment. Such a tool could also connect the farmer with information about seeds, fertiliser, credit, insurance and available markets.
In healthcare, similar applications could assist frontline health workers in assessing patients and identifying cases that require specialist attention.
For Nigeria, the discussion comes amid concerns about how technological advances could affect an economy already grappling with employment pressures. The central question is whether AI adoption will create productive opportunities or leave more workers struggling to find jobs.
The World Bank’s October 2026 Africa Economic Update identifies Nigeria, alongside Kenya and South Africa, as one of the continent’s leading centres of AI activity. However, the report notes that adoption remains at an early stage, with significant opportunities to develop solutions suited to local challenges.
Agriculture, education, healthcare, finance, logistics and public administration are among the sectors identified as potential beneficiaries of AI-driven productivity improvements.
The report also highlights barriers that could slow adoption across the continent, including unreliable electricity, limited internet access, inadequate digital skills and poor-quality data.
These constraints suggest that expanding AI use will require more than access to software. Investment in digital infrastructure, workforce training and reliable data systems will also be necessary to help businesses and public institutions use the technology effectively.
The IMF and World Bank’s message is that governments and businesses need to prepare for AI’s effects on employment while ensuring its benefits extend beyond a narrow group of highly skilled workers.
For Nigeria, this means developing the infrastructure and skills needed to apply AI to local economic problems, while creating pathways for workers to adapt as job requirements change.
