Report: AI could inject $15bn into Nigeria’s economy in six years

A new report released by Google says artificial intelligence (AI) could increase Nigeria’s economy by $15 billion in six years.

Public First, a policy, research, opinion and strategy consultancy, independently conducted the report, released on Thursday and titled ‘The Digital Opportunity of Nigeria’.

The report outlines the pivotal role of Google’s products and infrastructure in driving digital transformation and contributing to economic growth in Nigeria.

According to the findings, AI holds immense potential for Nigeria’s economy, with Google’s commitment to AI development expected to play a pivotal role in maximising the opportunity.

“The report estimates that AI could increase Nigeria’s economy by an additional $15 billion by 2030, with Google’s commitment to responsible AI development set to play a pivotal role,” the report said.

The findings showed that every $1 invested in digital technology in Nigeria generates over $8 in economic value, illustrating the high return on investment in the sector.

It said Google’s products and services contributed $1.8 billion to Nigeria’s economy in 2023, adding that it has significantly boosted the productivity of Nigerian businesses, creators, and workers.

“In 2023, Google’s products and services—including Search, Ads, YouTube, and Cloud—contributed an estimated $1.8 billion in economic activity across Nigeria,” the report said.

“This has significantly boosted the productivity of Nigerian businesses, creators, and workers.”

According to the report, the contribution emphasises the critical role of digital technology, including connectivity, cloud computing, and AI, in shaping Nigeria’s economic future.

‘OVER 1.5M YOUNG ADULTS GAINED DIGITAL SKILLS IN 2023’

The report further highlighted the impact of Google’s digital skills programmes, including digital skills for Africa and the career certificates programme, which have helped millions of Nigerians.

It said over 1.5 million young adults gained new digital skills through these initiatives in 2023.

“In 2021, Google committed $1 billion to accelerate Africa’s digital economy, focusing on improving internet access, supporting local entrepreneurs, and fostering innovation,” the report added.

“The Nigeria Digital Opportunity report illustrates how these investments are already creating lasting impacts in the country.”

The report also provided strategic recommendations for policymakers, advocating for increased cloud-first policies and enhanced digital infrastructure to maximise AI’s potential in Nigeria.

It called for stronger STEM education and AI fluency to prepare Nigeria’s workforce for the future.

Olumide Balogun, director of West Africa at Google, expressed excitement over the positive impact of digital technology on Nigeria’s economy.

“We’re thrilled to see the positive impact that digital technology is having on Nigeria’s economy,” Balogun said.

“This report underscores the importance of continued investment in digital skills and infrastructure to unlock the full potential of Nigeria’s vibrant digital economy.”

Amy Price, director and head of technology policy at Public First, emphasised Nigeria’s leadership role in Africa’s digital transformation.

“Nigeria is a digital front-runner in Africa, and tech investment will be a powerful catalyst for further growth and development across the country,” the director said.

Price added that the investment will be pivotal in the areas of connectivity, cloud computing, and artificial intelligence.