Nigeria Finalizes AI Regulations for Digital Sector

Nigeria is preparing to approve a legislative framework to regulate artificial intelligence. This move would position the nation as a leader in Africa for overseeing the rapidly expanding digital economy.

While Nigeria released a draft AI strategy in 2024, gaps in regulation remained. The forthcoming National Digital Economy and E-Governance Bill aims to address these concerns.

Regulatory Authority and Scope

The bill will grant the National Information Technology Development Agency (NITDA) authority over algorithms, data, and digital platforms. This oversight will encompass AI systems and tools utilized in public administration, finance, automated decision-making, and surveillance.

Key Provisions of the Framework

AI systems and tools used in key sectors will be subject to increased scrutiny, including annual audits. Developers will be required to obtain licenses or registration before deploying AI systems. Non-compliance could result in fines of up to 10 million naira (approximately $7000) or 2 percent of the AI provider’s annual gross revenue.

The legislation intends to implement a proactive and risk-based approach to AI regulation, emphasizing ethical standards centered on fairness, accountability, and transparency. Regulators will have the power to request information, issue enforcement directives, and potentially block or restrict AI systems deemed unsafe or harmful.

Promoting Innovation and Ecosystem Development

The bill also seeks to foster a secure and controlled environment for AI startups, encouraging innovation within the sector. According to Kashifu Abdullahi, director general of the National Information Technology Development Agency, regulation aims to influence market behavior and encourage the development of AI for beneficial purposes.

Timeline and Regional Context

Lawmakers anticipate approving the landmark AI bill by March 2026. If passed, Nigeria would be among the first African nations to establish a comprehensive regulatory regime for AI. While Egypt, Benin, and Mauritius have developed AI strategies, they have not yet implemented corresponding legislation.