An artificial intelligence (AI) expert and Chief Executive Officer of Investonaire UAE, El-Yakub Audu, has said wider adoption of AI could transform Nigeria’s estimated 39 million micro, small and medium enterprises (MSMEs), boost productivity and strengthen the country’s economy.
Speaking on Business Daily on Trust TV, Audu said AI could improve productivity, deepen financial inclusion and help move more businesses from the informal to the formal sector if backed by the right infrastructure and policies.
‘The idea is that once AI is integrated into how we do business and run our economy, it can bring a lot of advantages to institutions, countries and private businesses,’ he said.
He said Nigeria had made progress in AI adoption but still required greater investment in broadband infrastructure, digital skills and regulations to maximise the technology’s benefits.
‘If Nigeria not only invests in the infrastructure and regulations that are needed but also cooperates with private sector players, I believe there’s a lot of room for growth in the economy, particularly transitioning people from the informal sector to the formal sector,’ he said.
Audu said MSMEs would benefit from AI through improved access to financial literacy, digital services and business support, adding that the technology would enable institutions to reach more businesses efficiently.
‘We have about 39 million MSMEs in Nigeria. If institutions like SMEDAN adopt AI, it allows them to reach more users and offer opportunities that help migrate businesses from the informal to the formal sector,’ he said.
He said AI should also be integrated into tertiary education to equip graduates with skills needed in an increasingly technology driven economy.
‘We have over 2.5 million people graduating from tertiary institutions every year in Nigeria. Being able to incorporate financial literacy training into their curriculum would help transition more people from the informal to the formal sector,’ he said.
On employment, Audu acknowledged concerns that AI could replace some jobs but said it would also create new opportunities for workers willing to acquire new skills.
‘There is one aspect that certain jobs will be lost because of the advent of AI, but at the same time there are lots of new jobs that will be created. People should upskill because AI is here to stay,’ he said.
Speaking on agriculture, he said AI would improve productivity through data driven decision making, precision farming and the use of drones to improve crop yields.
‘Knowing whether your soil will give you the kind of yield you want depends on data. AI, even with drones, can improve productivity, crop yields and food production,’ he said.
Audu also said AI could strengthen the financial sector through improved credit profiling, financial inclusion and fraud detection, but warned that it could also be exploited for cybercrime.
‘AI does not come without concerns. There are risks around scams and cyber attacks, so investment in cybersecurity and public awareness will remain important,’ he said.
On healthcare, he said AI could support faster and more accurate diagnosis by analysing large volumes of medical data, particularly in underserved communities.
He urged organisations to invest in staff training and capacity building, saying businesses that fail to adopt AI risk losing competitiveness.
‘If you want to remain competitive, the best thing you can do is learn about AI and integrate it into what you are doing to help you do it better,’ he said.