World Bank, IMF Urge Investment in Infrastructure as AI Reshapes Jobs and Growth

World Bank and IMF leaders call for investment to support jobs and productivity

The World Bank and International Monetary Fund (IMF) have urged governments to invest in infrastructure, agriculture, healthcare, energy and workforce development as artificial intelligence (AI) reshapes employment and creates new pressures for developing economies.

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Speaking at a panel discussion involving World Bank Group President Ajay Banga, IMF Managing Director Kristalina Georgieva and Singapore President Tharman Shanmugaratnam, the leaders warned that economic growth alone would not guarantee sufficient employment. They called for investment in essential infrastructure, practical skills and productive sectors to help countries create jobs and prepare workers for changing labour-market demands.

The discussion carries important implications for Nigeria, where infrastructure gaps, limited access to reliable electricity and the need to create productive employment continue to shape economic development.

For the housing sector, the central issue is how investment in infrastructure and job creation can support residential development, strengthen household purchasing power and improve access to decent housing.

Infrastructure Investment Remains Central to Job Creation

Banga said governments must provide essential infrastructure, including roads, electricity, water, schools and healthcare facilities, while establishing policies that encourage private investment.

He noted that the private sector generates between 75 and 85 per cent of jobs in most countries, making the investment environment critical to employment creation and economic expansion. He also identified infrastructure, agriculture, primary healthcare, tourism and manufacturing as sectors with significant potential to generate jobs in developing economies.

For Nigeria, these priorities intersect with the challenges facing housing and real estate development. Reliable electricity, accessible roads, water supply and effective drainage systems influence construction costs, property values and the viability of residential projects.

Where infrastructure is inadequate, developers may need to provide essential services themselves, increasing development costs and potentially pushing up the prices of completed homes. Poor transport connections can also limit access to employment centres, schools and healthcare facilities, reducing the attractiveness of residential locations.

Public investment in these areas can therefore support housing delivery while improving the wider conditions for businesses to operate and expand.

However, infrastructure spending must translate into completed, functional projects. Investment announcements alone will not resolve constraints facing developers, businesses or households without effective implementation and maintenance.

AI Could Reshape Employment and Household Purchasing Power

Georgieva said AI could affect approximately 40 per cent of jobs globally, with an estimated 60 per cent of jobs in advanced economies exposed to the technology, compared with 26 per cent in low-income countries.

She cautioned that lower exposure in poorer economies did not necessarily mean greater protection, as it could also reflect limited access to AI technology. She urged governments to monitor labour-market changes, reform education systems and promote lifelong learning so workers could adapt to changing employment requirements.

The employment implications matter for housing because stable income is central to households’ ability to rent accommodation, save towards homeownership and qualify for mortgage finance.

If technological change creates productive businesses and better-paying jobs, it could expand effective demand for housing. However, if automation reduces opportunities in routine or entry-level roles without generating sufficient alternative employment, some households could face greater financial insecurity.

For Nigeria’s property market, this makes the quality and distribution of job creation as important as headline economic growth. Developers and investors need to understand whether employment opportunities are expanding across the income groups that form their target markets.

The relationship is not automatic: AI adoption could create new opportunities in some sectors while disrupting others. Its net effect on housing demand will depend on how employment, wages, access to finance and living costs evolve.

Electricity and Transport Are Critical to Housing Development

Reliable electricity remains one of the important foundations of viable housing and real estate investment. Power shortages can increase the cost of construction and building operations, while businesses and households may incur additional expenses to maintain electricity supply.

Investment in energy infrastructure can help improve the operating environment for developers, manufacturers of building materials and property managers. It can also support businesses that create employment and income in residential communities.

Transport infrastructure is equally important. Roads and public transport connections influence commuting costs, access to jobs and the range of locations households can realistically consider when choosing where to live.

For rapidly growing urban areas, coordinated investment in roads, public transport, electricity, water and drainage can help make new residential developments more functional. It can also improve access to underserved neighbourhoods, provided planning and housing supply keep pace with infrastructure expansion.

These investments should be integrated with land-use planning and housing policy. Otherwise, infrastructure improvements may increase land values without necessarily expanding the supply of affordable homes.

Private Investment Needs a Supportive Policy Environment

Banga emphasised the importance of creating conditions that encourage businesses to invest, while Shanmugaratnam urged developing countries to continue pursuing manufacturing opportunities by addressing barriers to business expansion, including access to land and restrictive labour conditions.

The discussion reinforces the importance of predictable policy, functioning infrastructure and access to productive resources in attracting long-term investment.

For Nigeria’s housing market, private investment is essential to expanding residential supply, particularly given the scale of development required and the limitations of relying exclusively on public budgets.

However, investment depends on more than demand for homes. Developers also consider land acquisition costs, title security, planning approvals, construction expenses, infrastructure availability and financing conditions.

Policies that improve land administration, reduce avoidable approval delays, expand infrastructure and support access to long-term housing finance could help create more favourable conditions for investment.

Public-private partnerships may also support infrastructure and housing projects where responsibilities, financing arrangements and risks are clearly defined. Their effectiveness will depend on transparent procurement, sound project design and accountability for delivery.

Skills Development Could Strengthen Nigeria’s Housing Value Chain

The leaders also stressed the need to prepare young people for changing labour-market demands. Shanmugaratnam called for stronger partnerships between educational institutions and businesses, including internships, practical training and opportunities for graduates to gain workplace experience.

This has relevance for Nigeria’s construction and real estate industries, which depend on a broad workforce spanning architecture, engineering, quantity surveying, building trades, facilities management, property technology and project finance.

Training programmes that respond to industry requirements could help improve productivity and support the adoption of digital tools in construction and property management. Better technical skills may also help businesses manage projects more efficiently and improve the quality of delivery.

As AI becomes more widely used, housing and construction businesses will need to assess where technology can improve design, cost estimation, project monitoring, customer service and property management, while ensuring workers can adapt to changing roles.

The broader opportunity is to connect workforce development with the sectors capable of generating sustainable employment, including housing construction and supporting industries.

Outlook: Linking Economic Growth to Housing Outcomes

The World Bank and IMF’s message is that governments must look beyond economic growth figures and invest in the infrastructure, skills and productive sectors needed to create jobs. Their warnings about AI also highlight the importance of preparing workers for technological change rather than assuming that growth will automatically deliver broad-based employment.

For Nigeria, the challenge is to translate these priorities into reliable electricity, better transport connections, stronger technical skills and a more supportive environment for private investment.

For the housing sector, progress in these areas could help reduce some development constraints, improve the viability of residential projects and strengthen households’ ability to pay for accommodation. But affordable housing will also require appropriate land policies, effective planning, suitable financing and a supply of homes aligned with household incomes.

Ultimately, infrastructure and job creation should be treated as connected parts of Nigeria’s housing-development strategy. Economic growth is more likely to expand access to decent housing when it creates sustainable incomes and is supported by the infrastructure needed to build and maintain liveable communities.

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