Nigeria is poised to become a leader on the African technology stage with plans to enact a new law aimed at governing artificial intelligence technologies. As artificial intelligence increasingly shapes economic, social and governance landscapes, lawmakers in Abuja are moving to establish legal guardrails that would govern the development, deployment and oversight of AI systems across the country. According to a report by BusinessNG, if these efforts succeed, Nigeria will join a small group of countries globally with a comprehensive AI regulatory framework and stand among the first on the African continent to formalise oversight of this rapidly evolving sector.
This effort underscores a growing recognition among Nigerian policymakers and digital leaders that innovation must be matched with robust governance to safeguard citizens, promote ethical use, and protect consumers as the nation’s digital economy grows. It also reflects broader ambitions to assert Nigeria’s influence in shaping Africa’s future tech landscape and to attract long-term investment into its thriving digital ecosystem.
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What the Proposed AI Law Entails
At the core of this legislative push is a bill known as the National Digital Economy and E-Governance Bill. When passed, it would introduce a series of regulatory requirements for artificial intelligence systems operating within Nigeria’s borders. The proposal targets not just software and computing algorithms, but real-world applications in financial services, public sector decision-making, surveillance technologies, and automated processes that have direct impacts on citizens’ lives.
Under the draft legislation, developers and providers of higher-risk AI systems would be required to submit annual risk assessments. These assessments must outline potential harms, mitigation strategies, and how the systems perform in real use. This represents a shift from largely unregulated innovation toward a model that balances creativity with accountability. By requiring documentation and transparency, the law aims to prevent harm before it occurs and to build public trust in AI solutions.
The bill also empowers regulators with enforcement tools. Authorities would be able to demand information from technology firms, issue directives to correct non-compliant systems, and even suspend or restrict unsafe AI services. The text sets penalties that include fines of up to 10 million naira or two per cent of an AI provider’s annual gross revenue generated in Nigeria for serious breaches.
An interesting addition to the bill is the creation of regulatory sandboxes where startups and researchers can test AI innovations under controlled conditions. This element recognises Nigeria’s dynamic tech sector and aims to ensure that regulation does not stifle innovation but rather supports it responsibly.
Why Nigeria Is Taking Action Now
There are several factors driving Nigeria’s urgency on AI regulation. For years, AI adoption has accelerated globally. Big tech companies from the United States, China, Europe and beyond have developed sophisticated systems that are used in everything from social media platforms to banking, healthcare, and government services. In Nigeria, both local innovators and international firms already deploy AI-enhanced software in fintech, logistics, and citizen services. However, until now, clear regulatory direction has been lacking.
Most existing legal tools that touch on AI are indirect. For example, the Nigeria Data Protection Act of 2023 lays out rules on how personal data can be processed and includes limits on automated decision-making that affects people without meaningful human oversight. Similarly, the Cybercrimes Act and other sectoral laws address aspects of digital behaviour that could overlap with AI use, but they stop short of a dedicated AI regime.
The new legislation seeks to plug this gap by offering clarity around ethical standards like transparency, fairness and accountability. Nigerian digital leaders argue that these principles are vital not only for protecting users, but also for fostering confidence among investors and innovators. As one figure involved in the process put it, regulation should not be about stifling innovation but shaping the behaviour of markets and society so that AI is used for good.
Broader Technology Ambitions and Regional Impacts
Nigeria’s push for AI regulation fits into a wider national agenda to reinforce its standing as a major technological hub in Africa. The country has a fast-growing tech ecosystem, with vibrant hubs in Lagos, Abuja, and other cities. Entrepreneurs are building startups that attract global capital, and local innovators are using AI tools to solve challenges in health, education, agriculture and logistics.
On the international front, several African countries have been active in discussing AI policy. Egypt, Benin and Mauritius, for example, have published AI strategies outlining how they want to balance innovation with risk management. But most have not yet enacted comprehensive, enforceable laws that govern AI technologies. If Nigeria successfully passes its new framework, it could inspire other African nations to follow suit.
This regional leadership role is particularly important as digital markets become more interconnected across Africa. Harmonised standards could promote cross-border collaboration, help attract multinational companies, and ensure that homegrown AI innovations meet global expectations on safety and ethical use.
Despite this forward momentum, challenges remain. Some observers point out that Nigeria’s legal and institutional capacity must continue to evolve to enforce these new rules effectively. Strengthening regulatory bodies, building technical expertise, and ensuring that laws remain adaptable to technological change will be essential. Additionally, legal issues such as intellectual property protection and how AI interacts with existing rights frameworks still require further clarification.
The Road Ahead
Lawmakers in the Nigerian National Assembly expect to complete deliberations and move the bill toward approval by March 2026. If that timeline holds, Nigeria will soon have one of Africa’s most comprehensive legal frameworks for artificial intelligence.
For technology firms and innovators, this development signals a new era of clearer expectations. Global companies that operate in Nigeria’s digital space will have defined standards to meet, while local startups will have a more predictable environment in which to scale. For citizens, the promise is greater protection of personal data and safeguards against harmful automated decisions.
Ultimately, this law could become a landmark in Nigeria’s digital transformation story. By marrying innovation with thoughtful governance, Nigeria is charting a path that other emerging markets might soon emulate.
Nigeria’s journey toward a regulated AI landscape reflects both the opportunities and responsibilities that come with leading in the age of data and algorithms. The success of this effort will depend not just on the passage of a law, but on how effectively the country implements and refines it over time as technologies evolve.
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