Nigeria is set to implement a groundbreaking law that could establish it as a leader in artificial intelligence (AI) regulation in Africa. This initiative aims to create a framework for overseeing the rapidly expanding digital platforms in one of the continent’s fastest-growing markets, often operating without significant legal oversight.
The proposed National Digital Economy and E-Governance Bill will empower regulators with enhanced authority over data usage, algorithms, and digital services. This legislation seeks to close a regulatory gap that has persisted since Nigeria introduced its draft AI strategy in 2024. Lawmakers anticipate that the bill will receive approval by the end of March.
A key focus of the bill is the heightened scrutiny of higher-risk AI systems utilised in finance, public administration, surveillance, and automated decision-making. These systems can significantly impact access to vital services and opportunities, making errors or biases potentially harmful. To ensure accountability, developers will be required to submit annual impact assessments detailing risks, mitigation strategies, and performance, allowing regulators to effectively monitor AI behaviours post-deployment.
The bill also grants regulators greater authority to demand information from AI providers and to issue enforcement directives, including suspending unsafe or non-compliant AI systems. This shift indicates a transition for Nigeria from informal adoption of technology to a more structured regulatory environment, where AI developers and digital platforms will face increased scrutiny.
Furthermore, the legislation allows regulators to impose fines of up to about $7,000 or 2% of an AI provider’s annual gross revenue from Nigeria. While the specifics of penalty assessment remain unclear, these compliance obligations represent a meaningful risk for companies operating in the country, especially those deploying large-scale AI solutions.
Kashifu Abdullahi, Director General of the National Information Technology Development Agency, emphasised the need for proactive regulation as AI adoption accelerates across sectors. If enacted, this law would position Nigeria among the first African nations to establish a comprehensive AI regulatory framework, setting ethical standards on transparency, fairness, and accountability.
Additionally, the bill includes provisions for controlled AI environments, enabling startups and institutions to test new technologies under regulatory supervision, thus supporting innovation while implementing necessary safeguards against misuse.
