AI Can Boost Nigeria's GDP By 4% If Infrastructure Improves — IMF


 

By Abdulahi Musa 


The International Monetary Fund (IMF) has projected that artificial intelligence (AI) could increase Nigeria's and the wider Sub-Saharan African economy by about four per cent over the next decade if governments invest in reliable electricity, internet connectivity, digital infrastructure and workforce skills.


According to the IMF, AI has the potential to significantly improve productivity, create new economic opportunities and accelerate growth across the region. However, the Fund warned that without major policy reforms and investments, the economic gains from AI could be as low as 0.2 per cent.


The IMF noted that Sub-Saharan Africa currently ranks lowest on its AI Preparedness Index because of inadequate digital infrastructure, weak regulatory frameworks and a shortage of technical expertise. These challenges, it said, continue to limit AI adoption and innovation across the region. 


The report stressed that unreliable electricity remains one of the biggest obstacles to AI development, with nearly half of the region's population lacking dependable power supply. It also highlighted poor internet penetration, noting that only 38 per cent of Africans had internet access in 2024, compared to the global average of 68 per cent. 


The IMF urged governments to prioritise investments in power infrastructure, fibre-optic networks, digital education and regulatory reforms to unlock AI's full economic potential.


Despite the challenges, the Fund said private sector investment in AI infrastructure is increasing across Africa. Major technology firms have announced investments in data centres and computing infrastructure, including projects involving Microsoft, G42, Cassava Technologies and NVIDIA, signalling growing confidence in Africa's digital future. 


The IMF concluded that while AI presents a significant opportunity for economic transformation, countries like Nigeria must improve their digital readiness to fully benefit from the technology-driven global economy. 

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