Employment Opportunity

By Nasiru Ibrahim

“The introduction of AI and automation is a double-edged sword: it holds immense potential for efficiency, but its consequences on job markets, especially in developing economies like Nigeria, need to be addressed through strategic workforce planning and skills development” (Bessen, 2019).

This article examines the positive and negative impacts of AI on the workforce, supported by economic theory and real-life examples from Nigeria.

Artificial intelligence is the direct opposite of human intelligence. It showcases the ability of machines, such as computers, to carry out tasks that require human intelligence. AI performs tasks such as writing, problem-solving, analyzing data trends, driving self-driving cars, harvesting fruits on farms, and other tasks traditionally performed by humans.

AI automation involves the use of artificial intelligence and technology to automate repetitive tasks that humans traditionally carry out in their daily lives. It enhances productivity, efficiency, and scalability, reduces production costs, and ensures round-the-clock availability for services such as banking.

AI depends on data to perform tasks and learns from humans through data annotation or labelling. This indicates that it cannot recognise images, interpret voices, or understand statements unless trained by humans. Generative AI like GPT–4 is transforming the labour market while influencing the demand and supply of labour in the overall economy. The automation of repetitive tasks in both skilled and unskilled jobs by companies has raised concerns about whether AI will harm or benefit the workforce. This debate has led to the application of traditional economic theory to explore and explain the economic effects of AI.

Economic Theory on AI

Austrian Economist Joseph Schumpeter’s theory of creative destruction explains how new technology and innovation reshape economies by replacing old jobs and technologies with new ones. This theory supports the argument that AI can create new industries, jobs, and opportunities, as seen in Nigeria’s growing tech sector, which includes Fintech, E-learning, E-commerce, and Agritech. Below, we explain these theories with examples from across Nigeria.

Firstly, in Fintech in Lagos, companies like Flutterwave and Paystack now employ AI engineers and data scientists to develop fraud detection systems and personalised banking tools.

Secondly, in E-learning in Abuja, platforms like Ulesson use AI for tailored learning experiences, creating roles like app developers and AI trainers.

Thirdly, in E-commerce in cities like Lagos and Kano, Jumia and Konga use AI for supply chain optimisation and chatbots, fostering jobs in logistics tech and digital marketing.

Fourthly, in Agritech in Kaduna, Thrive Agric employs AI for farm monitoring and analytics, generating demand for data analysts and field specialists.

Human Capital Theory

Human Capital Theory, developed by Gary Becker and Theodore Schultz, emphasises the importance of education and skills in economic productivity. In Nigeria, the demand for human capital has increased in sectors such as machine learning, data annotation, and AI development. The rise of AI has fostered a need for expertise in areas like data science and machine learning. Initiatives like Data Science Nigeria are aiding individuals in acquiring these skills, enhancing their employability and contributing to the nation’s economy. This aligns with Human Capital Theory, which asserts that investing in education and skills enhances productivity.

Pareto Optimality

AI has the potential to increase productivity and efficiency in Nigeria’s economy without worsening the condition of any particular group, achieving Pareto optimality. AI in Nigerian healthcare, such as AI tools for diagnosing diseases, is helping both patients and doctors. These tools make diagnoses faster and more accurate, improving care without harming anyone. This is an example of Pareto Optimality, where everyone benefits without undermining the benefit of anyone.

Dr. G. Yoganandham (2024), Professor & Head of the Department of Economics, in his paper titled Impact of Artificial Intelligence (AI) on the Economy, Politics, Ecosystem, Innovation, and Promoting Inclusive Workforce Frameworks (2024), stated:

“The global economy could benefit by $13 trillion from artificial intelligence by 2030, although 375 million jobs may be displaced. The workplace is one of many areas where AI will bring a revolutionary impact. It can streamline processes, reduce costs, and enhance decision-making. AI can also improve customer satisfaction by analysing data for predictive analytics, reducing accidents in construction and manufacturing, and creating new employment opportunities in data science, machine learning, and AI education.

However, workplace AI raises ethical concerns about racial bias, privacy, security, and democracy. While some argue it may lead to robotic employment, there is ongoing debate about its potential to foster innovative work, create new career paths, and improve judgment.”

From the above theories, it can be deduced that on the one hand, AI, ceteris paribus, could have a positive effect on the expanding workforce in Nigeria, in terms of:

Firstly, AI fosters the creation of new jobs and opportunities. It fosters the emergence of new industries and job roles, particularly in data science, big data technology, AI engineering, and cybersecurity. Companies like Data Science Nigeria (DSN) are equipping Nigerians with skills in data analytics and machine learning, creating employment opportunities in the tech industry.

Secondly, AI enhances productivity and efficiency. It reduces production costs and streamlines processes, enabling businesses to operate more efficiently. In agriculture, Hello Tractor uses AI to connect smallholder farmers with tractor owners, increasing farming efficiency and reducing costs.

Thirdly, improving demand forecasting and profitability. AI tools optimise supply chain management and demand forecasting, leading to increased profitability for businesses. Jumia, Nigeria’s leading e-commerce platform, employs AI algorithms to predict customer preferences, enhance inventory management, and boost sales.

Fourthly, upskilling the workforce. AI encourages the development of skills that align with technological advancements, offering workers better career prospects.

On the other hand, AI could have a negative impact on the workforce in Nigeria, in terms of:

Firstly, job displacement due to the automation of repetitive tasks can affect low-skilled workers, particularly in the manufacturing and service sectors. In Nigeria’s financial sector, banks such as GTBank have adopted AI-powered chatbots (e.g., Habari), thereby decreasing the need for human customer service representatives.

Secondly, bias in hiring and decision-making. AI systems trained on biased data can create discrimination, particularly in hiring processes.

Thirdly, ethical and privacy concerns. AI-driven technologies often raise privacy, security, and data misuse issues.

Fourthly, there is limited access to AI resources. Many Nigerians, particularly in rural areas, lack access to the infrastructure and education required to benefit from AI advancements. For example, I live in Gwiwa Local Government Area, Jigawa State, but the entire local government lacks basic ICT facilities, let alone advanced technological resources that would help people understand artificial intelligence.

While AI promises to increase efficiency and productivity in various sectors in Nigeria, such as agriculture, the question remains: Will the benefits outweigh the job losses, particularly in a country with high unemployment and underemployment?

In Northern Nigeria, where more than 50% of the population is engaged in agriculture, a phased approach is urgently needed. Before AI can be widely adopted, attention should be directed towards improving mechanised farming techniques to enhance food security and tackle inflation. 

Given the shortage of skilled labour prepared to use AI in agriculture, it is essential to prioritise education and training, followed by the mechanisation of farming practices. This would ensure that the workforce is adequately prepared to embrace AI when it is introduced. AI has the potential to boost agricultural productivity by facilitating the timely harvest of crops and minimising the risk of poor yields.

The lack of education in Northern Nigeria exacerbates these challenges. According to the World Bank, the literacy rate in Nigeria stands at approximately 31%, with the Northern region experiencing a significantly higher illiteracy rate. This deficit in educational access has fostered a profound sense of frustration, as many individuals find it difficult to survive amid escalating economic hardships.

People in these regions often face unmet needs, yet politicians offer solutions that don’t address the core issues. This disconnect between the people’s needs and the actions of those in power further deepens the divide and hinders progress. Many feel that immediate economic policies, such as harsh taxation and subsidy removals, are prioritised over long-term, sustainable solutions. There is an urgent need for more inclusive and sustainable economic policies that address the technological transformation driven by AI and tackle the underlying social inequalities.

While AI adoption in agriculture has the potential to boost productivity and reduce costs, the key to its successful integration lies in addressing the fundamental issues of illiteracy, poor governance, and lack of infrastructure, particularly in the Northern regions. Only through a concerted effort to improve education, promote mechanised farming, and gradually introduce AI can Nigeria hope to mitigate the potential displacement of jobs while reaping the benefits of technology.

Ibrahim is a graduate of the Department of Economics from Bayero University, Kano, and writes from Jigawa.

By Tahir Mahmood

Kano State, known for its vibrant culture and economic potential, has witnessed an influx of companies and nongovernmental organizations. However, there is a noticeable disparity in the representation of local citizens within these entities.

There is a need to address unemployment challenges and breathe new life into the economy of Kano State by drawing inspiration from the successful Edo Jobs Center model. This initiative comes at a crucial time when the need for job creation and skills development is more pressing than ever. It is suggested that Kano State adopt a framework similar to the Edo Jobs Center, a proven model that has successfully facilitated job placements, nurtured skills development, and fostered economic growth in Edo State. The aim is to tailor this approach to the unique needs and opportunities within Kano.

Acknowledging the existence of the Sani Abacha Youth Center and the challenges it faced, the Jobs Hub may aim to learn from past experiences. It is crucial to analyze the reasons behind the center’s abandonment, incorporating these lessons to develop strategies that ensure the sustained success of the new initiative, particularly in promoting local employment.

It’s important to note the historical context, particularly of the abandoned Sani Abacha Youth Center Kano, which had similar aspirations but fell short of realizing its full potential, serving only as a wedding event center and a popular rawar gala location—a joint for hookups where local ashawos are initiated and recruited, despite the Hisbah’s commitment to curbing those activities in the state. Learning from past experiences, the Jobs Hub may aim to address the shortcomings of previous initiatives and create a sustainable platform for employment and skills development.

The key components of the Jobs Hub may include an online portal connecting job seekers with opportunities, comprehensive skills development programs, and strategic partnerships with local businesses. This holistic approach will seek to bridge the gap between job seekers and employers while equipping the local workforce with the skills needed in today’s dynamic job market.

In light of the challenges faced by the Sani Abacha Youth Center, it is imperative that the new initiative address the reasons behind its abandonment. By incorporating lessons learned from past experiences, the Jobs Hub may aim to not only overcome previous obstacles but also ensure long-term success and sustainability with modern technological advancements.

To achieve the above, collaboration with the government, private sector, and local communities is crucial. This is to encourage the Kano State government to actively engage in supporting and endorsing the establishment of the Jobs Hub, aligning it with existing employment initiatives and leveraging public-private partnerships for enhanced impact.

The success of the Edo Jobs Center model presents a compelling case for the potential for positive outcomes in Kano State. As we endeavor to revitalize opportunities and stimulate economic growth, it is hoped that the government will consider adopting the Edo Jobs strategies, setting in motion a transformative journey towards a more prosperous and vibrant Kano State.

The proposed Jobs Hub integrates various components to create a comprehensive approach to local employment: Online Portal, by establishing a digital platform connecting local job seekers with employment opportunities, making the recruitment process more inclusive and accessible.

Skills Development Programs, through implementing targeted training initiatives tailored to the needs of the local workforce, enhance their competitiveness in the job market. Partnerships with Companies, by fostering collaborations with companies and organizations operating in Kano, and encouraging them to actively participate in the Jobs Hub by recruiting from the local talent pool.

A critical aspect of this is the emphasis on addressing the issue of underrepresentation of Kano citizens in the workforce. The Jobs Hub may work closely with companies to develop strategies for recruiting and retaining local talent, promoting a more inclusive and diverse work environment through government mandates for local recruitment. By recognizing the pivotal role of the government in influencing employment practices, this suggests that Kano State can enforce regulations mandating companies and organizations operating within its borders to prioritize the recruitment of Kano citizens.

This proactive approach aligns with the state’s commitment to promoting local employment and ensuring economic opportunities are accessible to its people. Collaboration and Stakeholder Engagement: Active collaboration with both government bodies and private sector stakeholders is essential for the success of the Jobs Hub. Encouraging dialogue and partnership-building creates a supportive ecosystem for local employment initiatives. The establishment of a Jobs Hub in Kano State not only addresses unemployment challenges but also tackles the issue of workforce disparities.

By promoting local employment, the proposal aims to create a more equitable distribution of economic opportunities. The government’s mandate to enforce local recruitment practices can further solidify the impact of the Jobs Hub, ensuring a brighter and more inclusive economic future for the people of Kano State.

The State holds the promise of revitalizing the local economy and creating a brighter future for the youth. By learning from past experiences and adopting innovative solutions, Kano has the opportunity to pioneer the fostering of employment, skills development, and sustainable economic growth.

Tahir Mahmood Saleh can be reached via tahirmsaleh.seggroup@gmail.com.

By Kamal Alkasim

In these tough economic times in Nigeria, young people, your ideas are more valuable than you think. They can be your ticket to success if you present them well. You can start small or go big, online or offline. Don’t start a business without knowing the ropes. Here’s some straightforward advice: Begin a small business, regardless of your education. Education helps but doesn’t limit you.

If you want to make it, learn from the experts in your field. Avoid diving into something you don’t understand. Ignorance won’t get you far. Remember, being a job creator is better than being a job seeker.

Procrastination is your enemy. Act on your ideas quickly. As Pastor Reno Omokri wisely said, “Your mind is your supercomputer.” Believe in the power of positive thinking, as Islamic Scholar Malam Ibrahim Khalil noted: “A rich person grows through investments, and a poor person through positive thoughts.”

Don’t believe opportunities are scarce. Every day is a chance to work on your ideas wisely and diligently. Even the slightest idea can lead to something great. Small steps pave the way for significant achievements.

Always remember that your ideas hold immense potential. The choice is yours: build on them or let them go to waste. Your future is in your hands. May God bless the brilliant young minds of Nigeria as they turn their ideas into reality!

Kamal Alkasim writes from Kano via Kamalalkasim17@gmail.com.

By Mansur Hassan, PhD

The Kano State government, under the administration of HE Dr. Abdullahi Umar Ganduje spent eight years without offering employment opportunities to the state’s youth, only to make such opportunities available after losing the 2023 election. The added insult to injury is that these opportunities are being sold for exorbitant prices, ranging from N50,000 to N100,000.

This kind of behavior is not only unethical but also unacceptable in a society that aspires to be just and fair. Employment opportunities should be based on merit and offered to those who are most qualified for the job, not to those who can afford to pay for them.

The fact that such opportunities are being sold at all is evidence of a corrupt and dysfunctional system that is failing to serve the interests of the people.

It is particularly troubling that this situation has arisen in Kano State which happens to be a home to a large population of young people who are in dire need of meaningful employment. Youth unemployment has been a major challenge in Nigeria, and Kano State is no exception.

It is estimated that over 50% of the state’s youth are unemployed or underemployed, a situation that is fueling poverty, social unrest, and other negative outcomes.

The failure of governments at all levels to address this issue during their eight-year tenure of the current dispensation is a clear indication of the lack of concern from the outgoing administration of APC for the well-being of the state’s youth.

Instead of investing in job creation and skills development programs, they chose to focus on other priorities, leaving the youth to languish in poverty and hopelessness. This is a failure of leadership, and it should not be tolerated.

It is also alarming that the situation is unlikely to change, as the person who is widely believed to be responsible for this state of affairs, Governor Ganduje, is not expected to change his ways.

The fact that he is accused of being behind the sale of employment opportunities further underscores his lack of concern for the welfare of the people. It is clear that he has lost touch with the realities on the ground and is more interested in consolidating his power than in serving the interests of the people.

In conclusion, the situation in Kano State is a sad reminder of the many challenges that Nigeria is facing as a country. Youth unemployment is a major issue, and it requires urgent and sustained action by the government and other stakeholders.

The sale of employment opportunities is a symptom of a deeper malaise that is undermining the country’s development and progress. It is time for all Nigerians to demand better from their leaders and to work towards building a more just and equitable society.

Mansur Hassan, PhD is a lecturer in the Department of Mathematics, Yusuf Maitama Sule University
He can be reached via mhassan@yumsuk.edu.ng

By Muhammadu Sabiu 
 
Shehu Sani, a former senator, has bemoaned the high rate of unemployment in Nigeria and lamented that many young people in have turned to seeking higher degrees as a result of the joblessness.
 
The former senator shared his concern in a tweet on Monday.
 
Recall that, according to a report in 2022, the joblessness rate in Nigeria rose to 37.7 percent.
 
During the “Workers’ Day” celebration, Sani noted that many young people were forced to pursue graduate studies due to unemployment.
 
He wrote, “Unemployment has forced so many youths to pursue masters and Doctorate degrees.

By Musa Abdullahi Kaga

As an employee, salary is one of the most, if not the most, important factors in applying for or staying in a job. It is, however, a known phenomenon that salaries, no matter how handsome, hardly cater to one’s wants and needs. Hence, the regular quest for the insatiable: salary review.

Salary review is often misunderstood or confused with annual assessment or appraisal. Salary review is mostly deeper than annual or biannual appraisals. It is a comprehensive analysis/evaluation of whether a specific pay package is a fair reflection of what an employee should earn in line with factors such as external market forces, experience, career progression, company culture, job performance, etc.

Reviews are an essential HR and management strategy/tool for attracting and retaining good hands in a company.

Several factors may necessitate reviews, ranging from competitors’ pay trends, employee opportunities, or employers’ fear of losing employees for whom they invested so much.

It is only fair that as your employee’s career progresses, so do their emoluments. This should, of course, depend on milestones, achievements, performances, etc. Should there be a positive progression, the salary should grow accordingly. Unfortunately, this is not obtainable in our clime, especially in the public sector.

According to data from ALLSTARTSIT – a tech company specializing in software development services and talent acquisition in CEE regions – there has been a massive median salary increase of 106% for software developers in the CEE regions over the last decade. For example, a system architect that earned $3000 a month in 2012 makes about $6200 in 2022. That is massive, even for an IT specialist.

Graph showing ten years salary trend of software developers

In Nigeria, however, the last time the federal government conducted an upward review of workers’ salaries was in 2009 – 13 years ago – with an increase of about 53%. The dwindling economic situation in the country has rendered the purchasing power of workers feeble. Different civil, trade and labour unions have tabled several demands to the government over the years on the review of salaries and other welfare packages; unfortunately, this is yet to achieve any positive outcome.

Recently, the Nigerian Labor Congress, through its President, Comrade Ayuba Waba, lamented the sorry state of Nigerian civil servants and reiterated their demands to the government.

According to Waba, economic challenges had eroded the purchasing power of ordinary workers so much that the minimum wage could no longer take a worker home and could barely serve as transport fare.

Speaking to NAN earlier this year, he said; “We want to make a formal demand on behalf of the Joint Service Negotiation Council for the review of wages in the entire public sector because it is due,’’

Looking inwards, it recently dawned on me the economic hardships endured by civil servants and other citizens; this is due to the rising cost of essential items and, of course, the occasion of the Eid celebrations. A friend who is an employee of a non-governmental organization has a compensation significantly higher than what his colleagues in the public sector receive, yet, he had to dig deep into his savings to afford a ram. It is nearly a miracle that he has the luxury of savings; public sector employees could only admire his status, even though he is still among the ‘masses.’

It is, therefore, a no-brainer for civil servants to work towards achieving an alternative source of income, especially in this digital era.

Unsurprisingly, it is not uncommon to see civil servants perpetually discussing issues like salary reviews and ‘welfarism’ in Nigeria. Even though successive governments in the past have not done enough to ensure a proper salary structure and compensation system among civil servants in various tiers of government, this is primarily because of the insatiable nature of salary.

The craving for more is intrinsically part of human nature, although some experts argue that insatiable desire is unhealthy (greed). Nonetheless, the motivation to work harder and earn a decent salary is our typical trait.

Musa Abdullahi Kaga sent this article via musaakaga@gmail.com.

Industrial Training (IT), Industrial Attachment or Internship, whatever name it is called, is no doubt, students’ first shot at the competitive, congested and already overcrowded labor market.

Indeed, many people who get employed with several public or private agencies in Nigeria today without a godfather made their inroads into such agencies through their IT. Too many examples abound to mention, a fact that underscores the relevance of the scheme in the course of training students in skills-based disciplines.

It is, however, unfortunate that nowadays, students make nonsense of this lofty scheme, and rubbish their chances of gainful employment after graduation. Sadly, such students think they are cheating on either their places of IT, or the educational system that includes IT as one of the key requirements for certain courses.

And funny enough, they would always fall back on their parents, lecturers and uncles to ‘hook’ them up with employers of labor when they messed up their golden opportunity of securing gainful employment at their places of IT.

As a lecturer, sometimes I go on IT supervision and see students who are tracing their ways to their IT posts for the first time! Today, many students are total strangers to their IT stations, and this denies quite a number of them valuable employment opportunities.

On one of my supervision tours, a company supervisor told an IT student (who he had never seen before and thought was his visitor) to wait, that a lecturer on supervision tour to his students was going to use his office, and he would attend to him- presuming that he was his visitor- after I was done with my students! I had to inform him that the person he thought was his visitor was actually one of the students I was going to supervise, to his greatest shock. Yes, that is how bad it could be sometimes.

During my IT, I had it at the back of my mind that I was embarking on one of the most important exercises that would shape my post-graduation life in the industry, and that guided my exploits in the industry from the choice of the agency to attach with, and my actual performance while on IT. I must confess that I had a very fruitful IT experience, and the contacts I established during IT are still beneficial to me to this day.

I must also be quick to emphasize that the establishment where one chooses to do his IT is as important as what they’re likely to learn or gain from the place. For instance, during my IT, I submitted a letter of placement in a certain media station and had several issues getting accepted. The station was skeptical of accepting pioneer students of a new university.

All the same, I was determined to press on until they accept me. However, my frustration with the administrative officer was unbearable at some point, and I had to explore other alternatives. I approached another media establishment and got immediate acceptance. In fact, in one visit, I submitted my application letter and got the acceptance letter. However, the circumstance of the acceptance was so funny that I had to dump the media house immediately after acceptance and go back to the initial station: why?

The administrative officer of the new media house promptly accepted my application for placement. Quite strange, however, his secretary had to use a manual typewriter to type my acceptance letter. And the funniest part of it is that he had to ask me for money before printing the acceptance letter which he typed for me in the manual typewriter! N100 or so I think at that time.

He apologized for the inconveniences though, but explained that he had to collect the money so as to fast-track the process of printing the acceptance letter. I guess there was no paper on which to print the letter.

I totally understood and gave him what he required to print the letter for me, but concluded I was not going to do my IT there again. Of course I had to walk away: one more look at the miserable office apartments, worn-out furniture, out-dated equipment, dilapidated structures and bureaucratic practices etc. all convinced me beyond what words would say, that the station was not a place to build career, so I took the letter and bade them a final goodbye.

Back to the initial media house: I had to press harder and disturb the administrative officer- emboldened by my serious disappointment at the other station- until he reluctantly accepted me. I was handed a neatly typed, well parceled and carefully sealed acceptance letter; and warned sternly that should I mess up during my IT; the station will NEVER accept interns from my “baby” university. Ourch!

That hurts! All the same, the packaging, the environment, the “swags”, the prestige, the caliber of persons I saw etc. all convinced me that the station was the right place to be for my IT. I reported on the appointed date and vowed never to let down my “baby” university.

My IT experience was rich, oh yes, very rich! I started going out with reporters and writing reports by the second week of my IT, and since then, was consistently in the daily bulletin throughout the period of my IT. Needless to state that I made money- like good cool cash, good friends, enjoyed good working relationship with my bosses and fellow interns from other institutions, and learned as much as I could.

But that was not all: after graduation, I went back to the same media house as a volunteer/casual staff and was promptly accepted! It was already a familiar terrain and I worked with the station for about five months before I eventually left for my NYSC, never to return again.

While I was at the NYSC orientation camp, the Manager News, together with the Deputy Manager and other key staff of the news room called to ask if they should facilitate my coming back to the station for my NYSC. The deal was that I would be placed on the priority list of competent hands awaiting a formal recruitment exercise, in which I would be a special candidate when it was time.

God bless my bosses, Alh. Suleiman Ibrahim – the Manager News and Alh. Umar Bakari, the Deputy Manager, and indeed, their accommodating lieutenants- producers, reporters and other staff with whom I had a great working relationship. However, I told them my Alma Mata indicated serious interest in me.

Already, my Head of Department was working tirelessly to have me posted back to the department where I graduated for my NYSC, after which I would be recommended for retention as a Graduate Assistant with the university. They appreciated the gesture and wished me well, even as I remained grateful to them for the offer too.

Dear students, IT is a golden opportunity. You can choose to be serious or unserious with it at your own expense. Like an African man would say: you’re doing yourself. No one cares. If you want to learn, depending on where you go, you will learn. If you choose to waste away the whole period, that is still fine; it’s entirely up to you.

But note that as you waste away that valuable time, you equally waste a wonderful opportunity that would have given you your first real shot at the competitive and already overcrowded labor market. The choice is entirely yours.

I hope this note of caution helps a determined soul.

Tordue Simon Targema writes from the Department of Journalism and Media Studies, Taraba State University, Jalingo. Email: torduesimon@gmail.com