The global race for artificial intelligence (AI) supremacy is reshaping the world’s economic and technological order. Countries like the United States and China are leading the charge, investing heavily to secure dominance in this transformative era. AI’s potential is staggering, with estimates by PwC suggesting it could contribute $4.4 trillion to the global economy by 2030. However, while developed nations race ahead, Nigeria risks being left behind. A lack of infrastructure, inadequate political will, and the absence of a coherent national strategy threaten to sideline the country in this critical industrial revolution.
“This young and vibrant population could become the nation’s driving force in embracing AI and securing a place in the global technological arena.”
Nigeria’s challenges are compounded by its overreliance on oil, which accounted for 90 percent of its export revenue in 2022. As nations pivot toward AI-powered economies, the global demand for fossil fuels is declining. This trend could destabilise Nigeria’s fragile economy, emphasising the need for diversification and technological innovation. Yet, Nigeria possesses a powerful demographic advantage: over 60 percent of its population is under 25 years old. This young and vibrant population could become the nation’s driving force in embracing AI and securing a place in the global technological arena.
The United States has positioned itself as a leader in AI, driven mainly by competition with China. The fear of China’s rapid advancements in AI technology has galvanised America to solidify its dominance. During Donald Trump’s second term, his administration has made AI a cornerstone of its strategy to secure economic and national security. The $500 billion Stargate Project, announced on Trump’s first day in office, was a monumental initiative to boost AI infrastructure, research, and education. The project sought to ensure America remained the leading force in AI by removing restrictive ethical AI policies, supporting the development of energy-intensive data centres, and investing heavily in energy sufficiency.
AI is not just an economic tool but is central to shaping global power dynamics. Between 2020 and 2023, the U.S. Department of Defence allocated $1.7 billion to AI-focused initiatives, demonstrating the importance of technology in maintaining a strategic edge. Beyond defence, AI applications in healthcare, such as IBM’s Watson, have revolutionised diagnostics, reducing errors by up to 30%. These advancements illustrate AI’s far-reaching potential to transform economies and societies.
The implications of America’s AI revolution for Nigeria are profound. Economically, AI offers opportunities to add trillions to the global economy by 2030, but Nigeria risks being excluded due to its lack of readiness. The country’s dependence on oil, coupled with the shift toward renewable energy in developed nations, directly threatens its economic stability. Energy policies in countries like the U.S. are reshaping global oil demand, which could drive down prices and leave Nigeria’s economy vulnerable.
The employment landscape is another critical area of concern. Globally, AI is expected to displace 85 million jobs by 2025 while creating 97 million new roles requiring advanced digital skills. However, Nigeria’s workforce is largely unprepared for this shift. Only about 22 percent of Nigerian graduates in 2022 pursued degrees in STEM fields—an area crucial for AI readiness.
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Nigeria’s inability to adapt to the global AI revolution stems from systemic issues. One of the most glaring gaps is the absence of a national AI strategy. Nigeria has yet to articulate a vision for integrating AI into its economy, unlike other nations with coordinated policies to guide AI development. This lack of direction has resulted in missed opportunities to collaborate with global AI leaders or participate in AI-driven economic initiatives.
Education is another critical area where Nigeria lags. STEM education, the backbone of AI readiness, is poorly integrated into Nigeria’s curriculum. The education system must be overhauled to prepare a tech-savvy workforce. Programs like Enugu State’s Smart School Project offer a glimmer of hope. Launched in 2024 by Governor Peter Mbah, the initiative aims to equip 260 schools with digital classrooms and AI-driven learning platforms. Already, 50 schools have been equipped, but scaling such efforts nationwide is crucial for a meaningful impact.
Leadership challenges further exacerbate the problem. Many policymakers in Nigeria fail to grasp AI’s importance, focusing instead on outdated economic models and short-term political gains. Additionally, the private sector’s limited involvement in AI research and development hinders the country’s competitiveness. For instance, while India boasts over 400 AI startups, Nigeria has fewer than 50, reflecting a significant gap in innovation and private-sector engagement.
AI’s potential to transform economies is evident in various sectors. In agriculture, for instance, AI-powered tools have increased crop yields by up to 20 percent in countries like India and Brazil. For a nation like Nigeria, where agriculture accounts for 22 percent of GDP, such technologies could address food security and boost productivity. In healthcare, AI has the potential to revolutionise diagnostics and treatment, addressing some of Nigeria’s most pressing challenges in the sector.
However, without proactive measures, Nigeria risks economic marginalisation. The growing technological disparities between AI leaders and laggards are becoming increasingly apparent. Failure to adapt could isolate Nigeria from global trade networks and reduce its ability to attract foreign investment, exacerbating inequality and economic dependency.
Nigeria must take decisive action in critical areas to secure its place in the AI-driven future. Reliable, affordable, and sustainable energy sources are essential for AI infrastructure. Nigeria must prioritise renewable energy projects and modernise its national grid to support AI development. Data centres, cloud storage, and high-speed internet access are crucial for fostering AI innovation, and public-private partnerships can accelerate the creation of these infrastructures.
Overhauling the education system is imperative. AI and coding must be integrated into school curricula, and initiatives like Enugu’s Smart School Project should be replicated nationwide. Increased funding for AI research and partnerships with global tech leaders are necessary to drive innovation. Incentivising local tech companies and startups to focus on AI applications tailored to Nigeria’s needs is also critical. Implementing policies to guide AI ethics, usage, and innovation is essential for sustainable growth. Regulatory bodies must ensure that AI technologies are deployed responsibly and inclusively.
The global AI revolution presents both challenges and opportunities for Nigeria. Without action, the country risks economic marginalisation, job losses, and dwindling relevance on the global stage. However, Nigeria can redefine its trajectory with visionary leadership, strategic investments, and a cohesive national AI strategy. AI has the potential to transform Nigeria’s economy, from boosting agricultural productivity to revolutionising healthcare and education. By investing in energy, infrastructure, and education and fostering innovation through research and development, Nigeria can overcome its challenges and secure a competitive edge in the AI-driven future.
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