Artificial Intelligence (AI) is rapidly reshaping Nigeria’s manufacturing floor as top firms adopt digital tools to boost productivity.
According to the Talent Management Report 3.0, which analysed how various industries, including manufacturing, are integrating AI into HR and operational systems.
The report shows that although interest in AI is rising, only 18 percent of manufacturing companies have fully implemented AI, while 14 percent are experimenting with digital tools.
Another 14 percent are merely exploring without concrete plans. A significant 32 percent are only aware of AI, signalling a sector still in early transition despite global trends. Only 11 percent have a formal AI strategy supported by leadership.
Large manufacturers such as Dangote Cement Plc and Nigerian Breweries Plc are leading the push for digitisation. “Dangote uses AI-driven recruitment tools to improve candidate screening and reduce hiring costs, while Nigerian Breweries has deployed chatbots to ease onboarding for new hires,” the report stated.
“Both companies also use Internet of Things (IoT) and data analytics to track employee productivity and identify learning gaps. These early adopters demonstrate the potential for AI to reshape workforce planning, performance management, and operational efficiency across Nigerian factories.”
Read also: IOM urges Nigeria to convert $20.9bn diaspora remittances into long-term investments
The report states that across the broader sector, AI is mostly being used in learning and development 25 percent, performance management 17 percent and workforce analytics 13 percent.
“Manufacturers are prioritising tools that enhance productivity and upskill workers rather than replacing jobs. Recruitment and onboarding account for 10 percent each, while usage for payroll and compensation remains at 8 percent.”
The report states that the key drivers for adopting AI are operational rather than talent-related. According to the report, 40 percent of firms deploy AI to improve operational efficiency, while 17 percent cite cost reduction.
While global conversations often focus on job losses, the local reality appears different. The report shows that AI has led to an increase in the demand for new skills, the creation of new roles, and job redesign.
Very few manufacturers report workforce reduction, suggesting that AI is transforming rather than eliminating jobs. To support this transition, 44 percent of companies offer AI-related training, 22 percent reskill workers, and 16 percent redeploy staff internally.
The biggest barrier in this sector is the low level of AI knowledge among employees. Other obstacles include the scarcity of quality training options, data privacy concerns, resistance to change, and high training costs. Power constraints, expensive digital tools, and funding limitations also hold back small and medium-sized manufacturers.
“Only 23 percent of firms say they have adequate infrastructure to support full AI deployment.”
Industry analysts say the slowdown in full-scale automation is expected, given Nigeria’s infrastructural challenges. However, the ongoing investment in AI-powered HR and training systems suggests manufacturers are positioning themselves for future competitiveness as labour markets shift globally.
Overall, Nigeria’s manufacturing sector is transforming. Early adopters are demonstrating the gains of digital talent management, but widespread progress will require major investment in skills, infrastructure, and leadership commitment.