The International Monetary Fund (IMF) and the World Bank have warned that artificial intelligence (AI) could worsen unemployment in Nigeria and other developing economies unless governments and businesses invest in workers’ skills and deploy the technology to support job creation.

IMF Managing Director, Kristalina Georgieva, gave the warning at the Small AI: More and Better Jobs event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, describing AI as a “slow-moving tsunami”.

Georgieva said about 40 per cent of jobs globally could be augmented, downgraded or eliminated by AI, depending on the economy and occupation, warning that the technology could significantly disrupt labour markets.

She stressed the need for countries to understand the implications of AI and equip workers with the skills required to adapt to changing workplace demands.

World Bank Group President, Ajay Banga, said the institution’s priority was to ensure that economic development translated into employment opportunities.

“The bank’s entire focus has to be on jobs,” Banga said, arguing that AI should be used to improve productivity and create employment rather than simply replace workers.

He said affordable and practical AI applications could help schools, healthcare systems and small-scale farmers expand their operations and improve productivity.

Banga illustrated the potential with a farmer using a basic mobile phone to photograph a diseased crop and receive advice on treatment. The technology could also connect the farmer to seeds, fertiliser, credit, insurance and market information.

In healthcare, he said AI-enabled tools could help frontline health workers assess patients and refer those requiring specialist attention to appropriate services.

The approach, known as “Small AI”, focuses on affordable applications tailored to local languages, infrastructure, needs and budgets rather than relying exclusively on expensive and sophisticated AI systems.

The World Bank’s October 2026 Africa Economic Update identifies Nigeria, alongside Kenya and South Africa, as one of the continent’s leading centres of AI activity.

However, the report notes that adoption remains at an early stage, with significant opportunities to apply affordable AI solutions to local challenges.

It identifies agriculture, education, healthcare, finance, logistics and public administration as sectors where the technology could improve productivity.

The report also warns that unreliable electricity, inadequate internet connectivity, limited digital skills and poor-quality data could hinder adoption across the continent.

For Nigeria, the challenge is to strengthen these foundations and ensure AI becomes a tool for creating productive jobs rather than worsening existing employment pressures.

The concerns echo findings in the World Bank’s Digital Progress and Trends Report 2025: Strengthening AI Foundations, which highlighted disparities in AI infrastructure, investment and skills between wealthy and developing countries.

According to the report, high-income countries accounted for 87 per cent of notable AI models, 86 per cent of AI start-ups and 91 per cent of global venture capital funding for AI as of mid-2025.

It also highlighted a gap between AI usage and infrastructure, noting that middle-income countries, including Brazil, India, Indonesia and Vietnam, generated more than 40 per cent of global ChatGPT traffic, while low-income countries accounted for less than one per cent.

The report further identified a significant digital skills gap, with basic digital skills ranging from less than five per cent in low-income countries to 66 per cent in high-income economies.

It warned that developing countries risk remaining consumers rather than creators in the global AI economy without targeted investments in education, digital infrastructure and local talent.

The World Bank has also stressed the potential of simple, affordable AI applications, including mobile tools that help smallholder farmers diagnose crop diseases and assist frontline healthcare workers.

Meanwhile, the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has raised similar concerns over the impact of automation on employment in Nigeria.

The association’s president, Fanimokun Adesina, recently warned that digital technologies, AI and robotics were already displacing workers.

Speaking at the 2026 World Day for Decent Work commemoration in Lagos, Adesina urged workers to acquire relevant digital skills to remain competitive.

“The future belongs to skilled workers. Digital skills, Artificial Intelligence and robotics are already displacing many workers.

“We must equip ourselves with evolving workplace technologies and digital skills to improve performance and productivity to remain relevant in the world of work,” he said.