The world is entering a new industrial era driven by AI, and nations that fail to adapt risk being left behind. For Nigeria, the stakes are high: economic marginalisation, job losses, and dwindling relevance on the global stage. The time to act is now. Nigeria can position itself as a competitive player in the AI economy by investing in energy, education, and infrastructure and developing a cohesive national AI strategy. Without these efforts, the country’s future in the global technological landscape remains uncertain.
The global race for artificial intelligence (AI) supremacy is swiftly redrawing the contours of economic and technological power, ushering in a new era that rivals the Industrial Revolution in its transformative potential. At the forefront of this seismic shift are nations like the United States and China, harnessing the boundless possibilities of AI to reshape industries, redefine societies, and propel their economies into uncharted realms of innovation. Projections by PwC forecast AI’s contribution to the global economy to soar to an astounding $4.4 trillion by 2030 — a testament to its role as the cornerstone of future prosperity.
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Yet, as the world hurtles toward this brave new frontier, Nigeria stands at a perilous crossroads. Ill-prepared, burdened by insufficient infrastructure, and hindered by a tepid political commitment to technological advancement, the nation risks being left adrift in this age of digital transformation. The urgency is palpable; the call to action resounds not in some distant horizon, but in the present moment. To secure its place in the unfolding narrative of AI-driven progress, Nigeria must rise now, embrace bold policies, foster innovation, and build the foundations for a future that refuses to be defined by obsolescence.
With over 60 per cent of Nigeria’s population under 25 years old, the potential for technological advancement is immense. These young minds, if nurtured and guided, could be the driving force propelling Nigeria into the AI era. However, the nation could miss opportunities for an AI-driven future without strategic action. We must examine the implications of America’s AI revolution for Nigeria, the nation’s current deficiencies in the AI economy, and the urgent steps needed to build a future-ready, tech-driven economy. There is hope in Nigeria’s youth and their potential to lead the country into the AI era.
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The United States has positioned itself as a global leader in AI, partly driven by competition with China. The fear of China’s rapid advancements in AI technology has catalysed America’s efforts to solidify its dominance in this field. AI is not only seen as an economic tool but also as a matter of national security and global influence.
Donald Trump’s administration recognised the importance of AI early. On his first day in office during his second term, Trump announced the $500 billion Stargate Project, a monumental investment in AI infrastructure, research, and education. This project is named after the science fiction device that enables instantaneous travel across the galaxy, and is aimed to catapult the US into a leading position in AI. His administration also repealed restrictive ethical AI policies to accelerate innovation and supported using public lands to construct AI data centres.
These measures underscore the critical role of AI infrastructure and its reliance on energy, prompting the US to adopt ambitious energy policies to support its AI capabilities. For example, US energy consumption attributed to data centres alone accounts for nearly 2 per cent of the country’s total electricity usage, a figure projected to grow as AI adoption expands.
AI’s impact is not confined to technology alone; it has implications for military power, healthcare, finance, and governance. For instance, the US Department of Defence invested $1.7 billion in AI-focused initiatives between 2020 and 2023 to maintain a strategic edge. Similarly, AI applications in healthcare, such as IBM’s Watson, have demonstrated capabilities to analyse patient data and recommend personalised treatments, potentially reducing diagnostic errors by up to 30 per cent. By harnessing these technologies, the US aims to lead economically and shape the global norms of AI development and usage.
Nigeria’s inability to adapt to the global AI revolution stems from several systemic issues. The absence of a national AI strategy is a glaring gap. Unlike other nations that have developed coordinated policies to guide AI development, Nigeria is yet to articulate a vision for integrating AI into its economy. This lack of direction is a critical issue that needs to be addressed, as it has resulted in missed opportunities…
America’s ambitious AI agenda has far-reaching implications for countries like Nigeria. First, the economic implications are profound. AI is projected to add trillions of dollars to the global economy by 2030, but Nigeria risks being excluded from these benefits due to its lack of technological readiness and economic diversification. The country’s over-reliance on oil exports — which accounted for 90 per cent of export revenue in 2022—further compounds this vulnerability.
Second, the energy implications are equally significant. AI infrastructure is energy-intensive, and the US has adopted policies to achieve energy sufficiency and increase fossil fuel exports. This shift could reduce global demand for Nigerian oil, resulting in lower prices and economic instability for the oil-dependent nation.
Third, the employment landscape is set to change drastically. AI is automating jobs across industries, creating a demand for AI-ready skills. According to the World Economic Forum, globally 85 million jobs could be displaced by AI by 2025, while 97 million new roles may emerge that require advanced digital skills. Unfortunately, Nigeria’s workforce is largely unprepared for this shift, increasing the risk of widespread unemployment and economic displacement. For example, in 2022 only 22 per cent of Nigerian graduates pursued degrees in STEM fields, a critical area for AI readiness.
Nigeria’s inability to adapt to the global AI revolution stems from several systemic issues. The absence of a national AI strategy is a glaring gap. Unlike other nations that have developed coordinated policies to guide AI development, Nigeria is yet to articulate a vision for integrating AI into its economy. This lack of direction is a critical issue that needs to be addressed, as it has resulted in missed opportunities to collaborate with global AI leaders or participate in AI-driven economic initiatives.
Investing in STEM education and digital literacy is crucial to prepare Nigeria’s workforce for the AI-driven future. However, the poor integration of STEM (Science, Technology, Engineering, Mathematics) education into Nigeria’s curriculum limits the country’s ability to prepare a tech-savvy workforce. Addressing these educational deficits is key to ensuring Nigeria’s readiness for the AI revolution.
However, there are glimmers of hope. Enugu State’s Smart School Project, launched by Governor Peter Mbah in June 2024, aims to revolutionise education and prepare young people for a tech-driven economy. This initiative, planned to equip 260 schools with digital classrooms and AI-driven learning platforms, is a step in the right direction, demonstrating that subnational governments can take proactive measures. Already, 50 schools have been equipped. Yet, such efforts are insufficient without scaling similar programmes nationwide.
Leadership challenges also play a significant role. Many of Nigeria’s policymakers do not understand AI’s importance, focusing instead on short-term political gains and outdated economic models. This ignorance hampers the nation’s ability to make informed decisions about its technological future. Furthermore, the private sector’s limited involvement in AI research and development reduces Nigeria’s global competitiveness. For instance, while India has over 400 AI startups, Nigeria has fewer than 50, reflecting the stark difference in private-sector engagement.
Nigeria’s readiness scorecard is dismal, with significant gaps in all these areas. The country’s federal and state leadership must think outside the box and rise to America’s $500 billion Stargate challenge because it would pressure Nigeria’s economic calculations. AI is essential to our economy since it presents game-changing possibilities in several industries.
AI is transforming the global economy, with industries ranging from healthcare and agriculture to finance and transportation leveraging its capabilities. Countries that have invested in AI are already reaping its economic benefits, further widening the gap between technological leaders and laggards. In agriculture, for example, AI-powered tools have increased crop yields by up to 20 per cent in countries like India and Brazil, demonstrating its transformative potential for developing economies.
The energy equation is also being redefined. As nations prioritise renewable energy to sustain their AI infrastructure, fossil fuel-exporting countries like Nigeria face declining demand and revenue. This shift underscores the urgent need for Nigeria to diversify its economy and reduce its reliance on oil exports.
Technological disparities between AI leaders and nations like Nigeria are becoming increasingly apparent. Without proactive measures, Nigeria risks being relegated to the periphery of the global economy, thereby exacerbating inequality and economic dependency. The lack of a competitive technological ecosystem will further isolate Nigeria from the industries of the future, making it difficult to attract foreign investment or participate meaningfully in global trade networks.
To avoid being left behind in the AI revolution, Nigeria must take decisive action to build its AI readiness. Five key prerequisites are essential: First, massive investment in reliable, affordable, and sustainable energy sources is critical to supporting AI infrastructure. We should prioritise renewable energy projects and modernise the national grid. Second, developing data centres, cloud storage, and high-speed internet access is crucial for fostering AI development. Public-private partnerships can accelerate the creation of these infrastructures.
Third, overhauling the education system to prioritise technology-driven learning is imperative. Enugu’s Smart School Project should serve as a model, with similar programmes scaled nationwide. Schools and universities must integrate AI and coding into their curricula to prepare students for the jobs of the future. Fourth, increased funding for AI research and partnerships with global tech leaders are essential to drive innovation. Nigeria must incentivise local tech companies and startups to focus on AI applications tailored to local challenges. And finally, implementing policies to guide AI ethics, usage, and innovation is necessary for sustainable growth. Regulatory bodies must ensure that AI technologies are deployed responsibly and inclusively.
Nigeria’s readiness scorecard is dismal, with significant gaps in all these areas. The country’s federal and state leadership must think outside the box and rise to America’s $500 billion Stargate challenge because it would pressure Nigeria’s economic calculations. AI is essential to our economy since it presents game-changing possibilities in several industries. It can boost healthcare, education, and agricultural productivity, leading to the diversification of the economy and the creation of jobs. To address the AI rookie status, the federal and state governments must establish a national AI council, partner with international organisations and tech firms, and launch initiatives to educate and train the workforce in AI technologies. The private sector and academia must also invest in AI research and foster public-private partnerships to accelerate development.
The world is entering a new industrial era driven by AI, and nations that fail to adapt risk being left behind. For Nigeria, the stakes are high: economic marginalisation, job losses, and dwindling relevance on the global stage. The time to act is now. Nigeria can position itself as a competitive player in the AI economy by investing in energy, education, and infrastructure and developing a cohesive national AI strategy. Without these efforts, the country’s future in the global technological landscape remains uncertain. However, with visionary leadership, strategic investments, and collective efforts, Nigeria can overcome its challenges and secure a place in the age of artificial intelligence.
Dakuku Peterside, a public sector turnaround expert, public policy analyst and leadership coach, is the author of the forthcoming book, “Leading in a Storm”, a book on crisis leadership.
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