Title: Artificial Intelligence and Economic Growth in Africa: A Study of the Business Sector in Nigeria
Authors: Dr. Joy Ndidiamaka Okoye and Chidi E. Nwokike
Volume: 9
Issue: 2
Pages: 9-14
Publication Date: 2025/02/28
Abstract:
Artificial Intelligence is fast transforming the global economies and opening new horizons for innovation and productivity. In Africa, particularly Nigeria-the largest economy in the continent, AI could be used as a catalyst for radical economic growth. This study investigated the impact of AI on the business sector in Nigeria and its ability to drive economic development amidst unique regional challenges. This qualitative study, using the content analysis, described infrastructural readiness, regulatory frameworks, and technological integration as some of the dimensions of the adoption of AI in Nigeria. Historically reliant on the fortunes of oil and gas industries, Nigeria faces dual burdens: the diversification of its economy and leveraging new technologies. The recent initiatives in areas such as the National Digital Economy Policy and Strategy (NDEPS) aim to create an enabling environment for AI. The study also identifies a role for AI in enhancing productivity and innovation in the crucial sectors of agriculture, finance, and manufacturing. Therefore, AI technologies can provide potential improvements in operational efficiency, resource management, and service delivery; however, numerous obstacles stand against their widespread adoption. These include inadequate infrastructure, regulatory uncertainties, and a gap in skills concerning AI technology. Despite these, the integration of AI could highly contribute to increasing economic growth through better use of resources, improving operational efficiencies, and creating new business models. The study concludes that realizing the full potential of AI in Nigeria requires coordinated effort by government, industry, and academia in putting up supportive infrastructures, developing regulatory frameworks, and addressing gaps in skills.