Energy and Artificial intelligence (AI) are redefining the future of work. While these fields are critical for job opportunities, efficiency, and quality of life, the persistent infrastructural challenges and the emerging gaps in education between the Global North and the Global South could pose a significant challenge for some countries in this region, particularly in Africa. Nigeria may also encounter the same challenge of adapting to this evolving economy, which could stagnate the country’s economic advantage. This is due to the vast infrastructural deficit that affects the majority of its population, who are either cut off from energy due to cost and unsustainable conditions, poor connectivity, or those who live in rural areas.
In the recently concluded World Economic Forum Annual Meeting, Davos 2026, conversations on AI was at the fore in many of the sessions, where experts, policymakers, and industrial leaders agreed that energy is central to the AI revolution. This means that without sustainable energy to support the establishment of data centers, it could strain the already overburdened power grid.
However, while some regions’ population growth is declining, reflecting an aging society, some are getting younger. At the center of this younger population where most of its demographic is below 40 is Africa, with Nigeria having the larger share. As Nigeria’s population is exploding, so is the rapid adoption of AI, driving an unprecedented rise in data center energy consumption.
Another key factor that is defining the gap in adoption of AI is the number of out-of-school children, followed by the number of people not in Employment, Education, or Training. Along with the rising demography, this could lead to a demographic crisis. The large percentage of the population is from the Northern part of the country, with over 56.4%, and with the highest NEET rates, in the North East (71.9%) and North West (64.8%). This is evident that the region may suffer a demographic crisis if the emerging challenges in the region are not addressed.
The development of AI has accelerated due to energy, because there will be no AI without energy – specifically electricity for data centers. However, the cost of energy, infrastructural deficit, and the lack of quality education and skills mismatches in Nigeria have been contributory factors that could constrain many Nigerians in the adoption of the technology. This means that AI may replace many people in their jobs as it is already shaping how economies grow, how businesses compete, and how governments deliver services.
According to a study by CSEA, Nigeria’s AI market is projected to reach $434.4 million in 2026. Despite witnessing this tide, and with the global AI economy surging toward an estimated $15.7 trillion by 2030, Nigeria is at risk of being left behind as adoption remains unequal.
The most important questions that is core to these rising demographic challenges include how much can AI affect a country’s economy? How can we fit into this evolving economy? What can Nigeria government do to adequately manage this rising population? What can be done to tackle the barriers preventing Nigerians from fully participating in the global AI economy?
To address these, we need to bounce back to best practices; we need to address the deepening digital divide, poor infrastructure, and lack of quality education that support exclusion.
The deepening digital divide in Nigeria requires a multi-faceted approach through infrastructural development, affordable access, and comprehensive digital literacy training. This is because countering the global digital divide is an increasingly urgent imperative most especially with the rise of AI and how it is re-defining several essential aspects of everyday life – including banking, health care, education, media, communications and many more. The solutions depend on access to digital tools and technologies. Solving this through strengthening actions around public-private partnerships to improve connectivity, providing devices, implementing skill-based education, and targeting gender gaps in technology access will go a long way in reducing the deficit in digital divide. We can learn this through how Singapore is investing heavily in national AI programs and securing public-sector AI tools, making its workforce among the fastest in the world at picking up AI skills.
Furthermore, countries like Estonia, Finland, Sweden, and Switzerland are investing in strong digital infrastructure. In Nigeria, we need to invest in energy to support the establishment of data centers and in education to compete in global market. Just like how countries like China and the U.S are investing in research and development in AI, Nigeria also needs to strengthen research and development to produce novel ideas for indigenous AI. AI readiness is uneven across many countries, and it is important to participate to avoid being late.
Fahad Aliyu Muhammed
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