Nigeria has been ranked among the top five countries in Sub-Saharan Africa with the strongest potential to benefit from artificial intelligence (AI), according to a new report by the International Monetary Fund (IMF). The report suggests that AI could become a powerful tool for improving productivity, creating economic opportunities, and supporting long-term growth if the country continues to invest in the right areas.
The IMF listed Nigeria alongside South Africa, Mauritius, Botswana, and Namibia as the countries expected to experience the biggest productivity gains from AI in the region. This ranking is based on the type of jobs available in each economy and how easily AI can improve work in those sectors.
According to the report, Nigeria has an advantage because many of its workers are employed in industries such as finance, information and communication technology (ICT), and professional services. These sectors are considered well-suited for AI, as the technology can help workers complete tasks faster, improve efficiency, and reduce costs.
The report, titled “Unlocking the Potential: AI in Sub-Saharan Africa,” explained that AI is becoming one of the world’s most important technologies. It has the potential to transform businesses, improve public services, and reshape economies across the globe.
However, the IMF stressed that many African countries still face major obstacles that could slow AI adoption. Poor internet access, unreliable electricity, limited digital infrastructure, and shortages of skilled workers remain significant challenges across the region.
The Fund noted that these issues must be addressed if countries want to fully enjoy the economic benefits AI can offer.
Despite these barriers, the IMF believes AI could make a noticeable difference to economic growth in Sub-Saharan Africa over the next decade. It estimates that AI adoption could raise productivity by between 0.2 percent and 2.1 percent, while also adding almost half a percentage point to annual GDP growth, depending on how governments and businesses respond.
Nigeria’s relatively strong position reflects the structure of its labour market, which is more similar to emerging economies than many of its regional peers. This gives the country a better chance of integrating AI into key industries where digital technologies are already playing an important role.
Still, the IMF warned that the current projections are based on today’s conditions rather than AI’s full future potential. Low adoption rates, infrastructure gaps, and the limited use of AI in many industries continue to reduce the technology’s overall impact.
The report also cautioned that countries which fail to improve their digital systems could fall further behind more advanced economies. Without the right investments and policies, the gap in technology and economic development may continue to widen.
On a more positive note, the IMF highlighted that AI is already making progress across several African countries. Businesses and governments are increasingly using AI in agriculture to improve farming, in financial technology to expand digital services, in healthcare to support medical care, in education to enhance learning, and in public services to improve efficiency.
The Fund believes this growing adoption shows that Africa has an opportunity to use AI as a tool for development rather than simply following global technology trends.
For Nigeria, the message is clear: with stronger digital infrastructure, better education, reliable electricity, and supportive government policies, artificial intelligence could become a major driver of economic growth, innovation, and improved living standards. While challenges remain, the IMF believes the country is well-positioned to take advantage of the AI revolution if it acts quickly and invests wisely.
