How AI Can Help Nigeria But Poor Families May Miss Out

Artificial intelligence, or AI, can help grow Nigeria's digital economy and cut down poverty. But according to the World Bank’s latest report, poor families might not benefit from it.

In the October 2026 Africa Economic Update, the bank said AI could reduce poverty in Africa. But this is limited by lack of access to cheap internet, devices, electricity, and digital skills.

The bank noted that Nigeria’s developers have grown fast since the global AI boom. It mentioned that the number of developers on GitHub in Nigeria has increased tenfold since 2020.

Ghana also saw nearly an eightfold increase in its GitHub developers. This rise happened after free AI coding tools became available. “Some early signals are encouraging, showing that African countries have become increasingly active in software development since the AI boom,” the report said.

The World Bank explained that this growth shows the potential of AI if access is improved across Africa. This includes a bigger digital services sector, better teamwork between regions, and increased productivity in areas that impact poor families.

“These early signals point to what AI could deliver if access broadens: a larger digital services sector, stronger regional collaboration, and productivity gains in the sectors that touch poor households, from agriculture to education, health, and finance,” the Bank stated.

But the report cautioned that Africa’s chances to benefit from AI are still limited by costs and access to digital infrastructure. “The expansion of AI use faces a fundamental constraint: only a relatively well-off minority can reliably access and afford the technologies through which it is delivered,” the World Bank said.

Mobile internet in Sub-Saharan Africa is the least affordable globally compared to income. A basic data package costs about twice the United Nations’ target of two percent of an average monthly income.

The cost of devices also remains a challenge. The Bank said a basic phone costs the poorest 20 percent of the population roughly three-quarters of a month’s salary.

The report also linked digital access to electricity. It pointed out that just owning a mobile phone does not mean people can access digital services effectively. “Mobile phone ownership alone does not provide meaningful digital access without reliable electricity,” the report said.

In 19 African countries where data is available, only 12 percent of households in the poorest income group have both a phone and electricity. This is compared to 54 percent among the wealthiest households.

Internet use differs a lot based on household wealth. The World Bank noted that in many African countries, less than 10 percent of adults in the poorest group are online. In contrast, over 60 or 70 percent of adults in richer households are online in better-connected economies.

The Bank warned that this issue could mean that the benefits of AI might only go to people and businesses that are already well off. It highlighted that farmers, informal businesses, schools, clinics, and communities in less served areas could miss out on AI’s advantages.

“Consequently, the immediate risk for most African economies is not mass displacement of poor workers by AI, but rather that the productivity gains from AI accrue almost entirely to highly educated workers, formal firms, and richer urban households.

“The divide is therefore not simply between countries that adopt AI and those that do not; it is between countries able to diffuse its benefits widely and those where adoption remains an enclave phenomenon,” World Bank said.

The international organization said African countries should focus on connecting the markets to poor people and areas. This requires investments in connectivity, electricity, digital skills, and computing power.

It stated that making these changes could help AI become a tool for wider productivity growth and poverty reduction. “If African countries make that transition, AI can become a platform for broad-based productivity growth and poverty reduction. If they do not, it will amplify the advantages of those already connected,” the World Bank said.