Nigeria is poised to become one of the first countries in Africa with a comprehensive legal framework to govern artificial intelligence (AI), as the National Assembly moves to approve a landmark technology law that could reshape digital oversight across the economy.
Lawmakers are working to pass the National Digital Economy and E‑Governance Bill before the end of March, a development that signals a shift from voluntary AI guidance to formal regulation in West Africa’s largest economy.
If approved, the law would create enforceable standards on the use of AI, giving authorities broad powers to oversee data usage, algorithmic systems, and digital platforms that increasingly influence public and private sector activity.
Under the proposal, higher‑risk AI applications — including those used in finance, public administration and automated decision‑making systems — could face stricter scrutiny. Developers would be obligated to provide annual impact assessments outlining risk mitigation strategies and performance metrics, while regulators would gain authority to demand information, issue compliance directives or suspend systems deemed unsafe.
The bill also includes penalties for non‑compliance, empowering regulators to impose fines up to ₦10 million naira (about $7,000) or up to 2% of a provider’s annual revenue in Nigeria. While details on enforcement mechanisms remain sparse, this marks one of the first instances where AI deployments could have direct financial consequences in the country.
The proposed law is designed to close a regulatory gap that has persisted since Nigeria released a draft national AI strategy in 2024.
Supporters say the framework could influence how major technology companies — from US‑based firms such as Google to Asian cloud providers — operate within Africa’s most populous nation, particularly as digital services expand.
It also establishes regulatory sandboxes, allowing local startups and institutions to test AI systems under supervised conditions, a feature intended to preserve innovation even as oversight tightens.
Several African countries, including Mauritius, Egypt and Benin, have published AI strategies, but few have moved toward enforceable legislation. Nigeria’s approach adopts a risk‑based model similar to regulatory frameworks emerging in Europe and parts of Asia, emphasising transparency, fairness, and accountability across the AI life cycle.
