AI-Induced Job Displacement in the Nigerian Banking Sector: A Case for a National Re-Skilling Fund

Abstract

Artificial Intelligence (AI) is rapidly transforming Nigeria’s banking sector. Over the last few years, major Nigerian banks have increasingly deployed AI-powered chatbots, digital assistants, and automated service platforms to improve efficiency and reduce operational costs. Evidence shows that at least 13 Nigerian Deposit Money Banks (DMBs) have already integrated AI chatbots into customer service systems to handle routine inquiries, transfers, and financial transactions. While these technologies improve service delivery and enable 24-hour digital banking, they also pose significant risks to employment, particularly for entry-level customer service representatives, call-center agents, and data entry staff whose roles are increasingly automated. The banking sector has historically been one of the largest employers of skilled white-collar workers in Nigeria. However, as banks adopt digital-first models and automated support systems, thousands of low- and mid-level positions face gradual displacement. Without a coordinated policy response, AI-driven automation could worsen unemployment and widen the digital skills gap in the financial sector. the National Assembly may consider the following recommendations: ✓ Establish a national AI workforce transition fund with a legal backing. ✓ Legislate that Commercial banks benefiting from automation could contribute a small percentage of annual profits toward workforce transition programs. ✓ Organise a policy dialogue to facilitate collaborations with and among fintech companies, universities, technical training institutes and international development organizations to ensure re-skilling initiative is achieved. ✓ Initiate legislative debate on the need to develop a national strategy addressing AI’s impact on employment across sectors. ✓ The Senate Committee on Banking, Insurance and Other Financial Institutions, the House Committee on Banking Regulation and the Senate Committee on ICT and Cybersecurity, through its oversight function may wish to oversee AI policy implementation.