Okonjo-Iweala: With Right Policies, Investments, AI Can Boost Nigeria’s Economy

•Says constant power outages could limit potential, technology adoption

•UBA GMD, Alawuba bags honorary doctorate from AUST

James Emejo in Abuja

The Director-General, World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, yesterday said the Nigerian economy could reap enormous benefits from Artificial Intelligence (AI) if the government makes the right policy and investment decisions to drive its adoption.

Citing a recent report by a public policy consultancy, Okonjo-Iweala said AI could generate $136 billion in productivity gains, including cost and time savings and increased revenues for four countries – Nigeria, Kenya, Ghana and South Africa.

She, however, pointed out that access to reliable electricity power supply, power outages and constant interruptions might prove a more challenging constraint in Nigeria and other African countries to internet access and AI adoption than anything else.

Delivering her keynote address at the 10th Convocation of the African University of Science and Technology (AUST), Abuja, the former Minister of Finance and Coordinating Minister for the Economy said, “If Nigeria could get it right, our economy could reap major rewards”.

This came as the AUST Governing Board, at the convocation, conferred an Honorary Doctorate (Honoris Causa) of Business Administration on Group Managing Director/Chief Executive, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba.

The WTO DG however, noted that the gains and savings of the four countries amounted to 13per cent of their 2022 GDP with Nigeria in line to receive 43 per cent of the estimated gains.

She said, “And here we must also commend the federal government and the Ministry of Communications, Innovation and Digital Economy for its proactive role in putting together a national AI strategy that seeks to leverage AI to help drive the economy in precisely the ways we spelled out earlier – developing talent and skills and partnering with big players like Google to train and upskill young people and support startups.”

Also citing a Pricewaterhouse report, Okonjo-Iweala said AI could boost global economic activity by up to $15.7 trillion or about 15 per cent by 2030.

She said, “They predict that this growth will not be confined to the industrialised north. The global south including Nigeria has much to gain, but countries across the developing world will need to be proactive to seize this potential.”

She said Nigeria cannot afford to be left behind in the race to take advantage of AI technology to reshape economies and achieve development goals and aspirations.

She said AI was also poised to reshape international trade in profound ways, creating opportunities for Nigeria and other developing economies.

According to her, WTO research had highlighted AI’s potential to reduce trade costs, boost productivity and accelerate growth in digitally deliverable services.

She said, “According to simulations in our report, broad adoption of AI worldwide contributing to high and widely distributed productivity gains could increase global trade itself by as much as 14 percentage points by 2040 compared to baseline projections.

“In this optimistic scenario, low-income and lower-middle-income economies stand to register faster trade growth than upper-middle-income and high-income economies.

“However, in a scenario marked by divergent AI adoption and more limited productivity increases, the gains for trade could be halved and prospects for developing economies would be diminished.

“To maximise AI’s benefits for trade, countries need to cooperate at the international level to avoid conflicting approaches to AI. But even more importantly, countries need to act at home to prepare and position themselves properly.”

The WTO boss further stressed that AI could open pathways to create jobs that enhance and leverage local talent in Nigeria, adding that cheaper white-collar services could lower costs for Nigerian companies.

She said generative AI tools could help more Nigerian coders compete globally and open new avenues for scientific research in the country.

She said, “Our large and young population and growing middle class present the prospect of a dynamic workforce that uses AI to supply world markets as well as a significant market for AI solutions in its own right.

“But to realize this demographic dividend, Nigeria as a country will need to close the digital divide and one major concern about AI is its potential for deepening that divide.

“Many African countries face limited access to reliable internet and affordable digital infrastructure, creating barriers to adopting AI technologies equitably. This gap risks sidelining rural and underserved communities and excluding them from the benefits of AI-driven advancements.

Continuing, Okonjo-Iweala said, “But it’s not just about rural and underserved communities. Even in our institutions of higher learning, the lack of reliable internet access is something that I hear about that happens on a daily basis. In fact, I just saw a news item in the country a couple of days ago about polytechnic students complaining about access to reliable internet services on campus.

“Internet penetration in Nigeria, for example, stood at 43per cent in March 2024, down from 48 per cent the previous year, according to industry statistics quoted by the Nigerian Communications Commission.

“So, we must seize the emerging opportunities that internet penetration has to improve. Underpinning all that, of course, is access to reliable electricity power supply, power outages and constant interruptions might prove a more challenging constraint in Nigeria and other African countries to internet access and AI adoption than anything else.”

Meanwhile, in conferring the honorary degree on Alawuba, AUST said it found “no better person to receive it than the managing director of a very innovative forward-looking bank, United Bank for Africa”.

It further described Alawuba as an accomplished banking professional with over 25 years of experience in various sectors, including corporate, consumer, institutional and commercial banking, adding that his “achievements stand as a beacon of what can be accomplished through hard work, vision, and unrelenting commitment”.