Nigeria Set to Pass Sweeping AI Rules for Its Digital Economy

Nigeria Set to Pass Sweeping AI Rules for Its Digital Economy

Nigeria is preparing to approve a comprehensive law to regulate artificial intelligence as part of its broader National Digital Economy and E-Governance Bill. The move aims to close existing regulatory gaps and provide clearer oversight for AI systems used across both public and private sectors. If passed, the law would position Nigeria as one of the first African countries to introduce an economy-wide framework for AI governance.

The proposed legislation adopts a risk-based approach, placing stricter requirements on high-risk AI systems used in areas such as finance, surveillance, public services, and automated decision-making. Developers and service providers would be required to submit regular risk assessments, disclose how their systems operate, and demonstrate measures taken to reduce potential harm. Regulators would gain authority to investigate systems and intervene when AI deployments are deemed unsafe or non-compliant.

Penalties are a key feature of the bill, with fines potentially reaching millions of naira or a percentage of a company’s local revenue. These enforcement measures are intended to encourage responsible AI development while protecting citizens from misuse, bias, or opaque decision-making. The framework emphasizes transparency, accountability, and fairness as core principles guiding AI adoption.

If enacted, the law could significantly influence how global technology companies operate in Nigeria and may serve as a model for other African nations. By establishing clear rules early, Nigeria aims to support innovation while ensuring that AI contributes safely and sustainably to its rapidly expanding digital economy.

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