This study examines the complex dynamics of automation's effects on employment within
Nigeria's burgeoning manufacturing sector, with a close attention to Lagos cluster, the hub
of the nation's economic activity. A thorough survey study design was used to collect data
from 320 respondents who worked for three manufacturing organizations. The Structural
Equation Model (SEM) was used to analyze the intricate relationship between automation
technologies—Artificial Intelligence (AI), Internet of Things (IoT), and Data Analytics
(DA)—and employment levels. AI has the most influence, closely followed by IoT and DA.
The regression weights showing the size of effect of relationship between Employment and
Internet of Things was (0.287), Employment and Artificial Intelligence was (0.563), as well
as Employment and Data Analytics to be (0.309). Additionally, a convincing analysis using
Squared Multiple Correlations reveals a correlation of 0.840. This coefficient indicates that
the combined effects of the automation factors, including IoT, AI, and DA, account for 84%
of the variation in employment levels. The research's conclusions confirm that each of the
three automation technologies has a statistically significant and overwhelmingly favourable
impact on employment by emphasizing the urgent need for proactive governmental
measures that would create an environment that will allow Small and Medium-sized
Enterprises (SMEs) to easily adopt automation technologies. The study therefore
recommends the adoption of automation technologies in Nigeria's manufacturing sector to
help stakeholders, business leaders, and policymakers to navigate the complex world of
automation in Nigeria's industrial sector and provides an effective road map for
successfully utilizing automation's promise while resolutely preserving the well-being and
livelihoods of the workers.