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The Impact of Artificial Intelligence on the Labour Market in Nigeria: A Government Policy Approach

Nwabuatu, Emmanuel Nnajiubah. Ph.D

Abstract

The rapid advancement of Artificial Intelligence (AI) technologies is transforming labour markets globally, with profound implications for economies, particularly in developing countries like Nigeria. This paper examines the dual impact of Al on Nigeria's labour market, highlighting its potential to drive economic growth and innovation while posing risks of job displacement and socio-economic inequality. Al adoption across sectors such as finance, healthcare, agriculture, and manufacturing offers opportunities for efficiency gains and new job creation in emerging fields like data analysis and machine learning. However, the automation of routine tasks threatens low-skilled jobs, exacerbating unemployment and widening income disparities. The study identifies critical challenges, including Nigeria's high unemployment rates, low digital literacy, and insufficient infrastructure, which hinder equitable Al integration. Current government policies, such as the National Digital Economy Policy, lack comprehensive strategies to address these labour market disruptions. Drawing on international best practices, this paper advocates for targeted interventions, including Al-focused education, vocational training, public-private partnerships, and social safety nets to mitigate job displacement and ensure inclusive benefits. Through a policy-oriented framework, this paper underscores the need for Nigeria to balance Al's transformative potential with its socio-economic challenges. Proactive measures can position Nigeria to harness Al's benefits while safeguarding its workforce and promoting equitable economic growth.

Keywords

Artificial Intelligence Nigeria labour market job displacement digital literacy economic policy workforce development

References

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