Nigeria is gearing up to pass first-of-its-kind Artificial Intelligence (AI) laws that would establish a comprehensive regulatory framework for the usage of the technology in the country.
This makes the country one of the first in Africa to introduce enforceable oversight for this transformative technology.
The proposed National Digital Economy and E-Governance Bill aims to close longstanding regulatory gaps that have persisted since the release of Nigeria’s draft national AI strategy in 2024.
National Assembly Lawmakers are expected to approve the bill by the end of March 2026, granting the National Information Technology Development Agency (NITDA) formal authority over algorithms, data governance, digital platforms, and AI deployments across the economy.
It was gathered that Nigeria is planning to pass the AI laws following the booming digital sector, from fintech and public services to private enterprise.
Kashifu Abdullahi, Director General of NITDA, highlighted the balanced intent behind the legislation.
According to him, regulators would gain powers to demand information, issue enforcement directives, and even block or restrict AI systems deemed unsafe or harmful.
Abdullahi added that under the proposal, higher-risk AI systems — including those deployed in finance, public administration, surveillance, and automated decision-making — would face stricter scrutiny. Developers would be required to submit annual impact assessments detailing risks, mitigation measures, and system performance.
The bill would also allow regulators to impose fines of up to 10 million naira ($7,000) or as much as 2% of an AI provider’s annual revenue generated in Nigeria, although it does not specify how penalties would be calculated or enforced.
The legislation is designed to regulate AI early rather than retroactively, as adoption accelerates across Nigeria’s financial sector, public services, and private industry.
“If passed, Nigeria would be among the first African countries to adopt an economy-wide regulatory framework for artificial intelligence,” Abdullahi said in an interview with the press.
Several African countries, including Mauritius, Egypt, and Benin, have published AI strategies, but few have enacted comprehensive legislation governing the technology.
The proposed law sets ethical standards around transparency, fairness, and accountability, and adopts a risk-based approach similar to regulatory frameworks emerging in Europe and parts of Asia. That could reshape how multinational technology companies — from US-based firms such as Google to Chinese cloud providers — operate in Africa’s most populous country.
“In governance, we need safeguards and guardrails to ensure the AI we build operates within acceptable boundaries,” Abdullahi said. “That way, bad actors can be detected and contained.”
The bill would empower regulators to demand information from AI providers, issue enforcement directives, and suspend or restrict systems deemed unsafe or non-compliant. It also provides for regulatory “sandboxes”, allowing startups and institutions to test AI systems under supervision in an effort to balance oversight with innovation.
“Regulation is not just about giving commands,” Abdullahi said. “It’s about shaping market and societal behaviour so people can build AI for good.”
