Nigeria has taken a major step toward regulating artificial intelligence with a proposed law that would require mandatory registration and licensing for anyone developing or deploying AI systems in the country. The bill, titled A Bill for an Act to Ensure Proper Control of Usage of Artificial Intelligence (AI) Technology in Nigeria and for Related Matters, 2023, was introduced by Rep. Sada Soli of Katsina State. It received its first reading in the House of Representatives on Nov. 22, 2023.
If approved, the legislation would establish the country’s first legal framework for AI governance, setting standards for ethical use, oversight and accountability across the digital economy.
The bill centers on the creation of a National Artificial Intelligence Council, which would act as Nigeria’s top authority for regulating AI development and deployment. The council would control, supervise and approve all AI-related activities, including issuing guidelines, setting ethical and technical standards, conducting audits and enforcing compliance through penalties or suspensions.
The council would also have authority over AI solutions developed in Nigeria or imported from abroad, meaning local startups and foreign firms offering AI products would face the same approval requirements. According to the bill, the council is expected to promote safe and ethical AI use aligned with human rights, public safety and national security.
Mandatory registration and licensing
A key provision would require any organization or individual that develops, imports, distributes or uses an AI system to register with the council and obtain approval before deployment. This requirement is aimed at developers and companies integrating AI in commercial systems, not ordinary users of tools such as ChatGPT or Claude.
The bill introduces a risk-based classification system for AI, with high-risk systems — including those used in health care, finance, public services or national security — subject to tougher rules. Developers would have to conduct impact assessments, disclose data sources and algorithmic designs, and undergo regular compliance reviews.
Failure to obtain approval could result in fines, suspension or shutdown of non-compliant systems.
Ethical use and transparency
The draft law emphasizes fairness, transparency and nondiscrimination in AI systems. Developers would be required to document system design, data sources and operational details for council review. When AI makes decisions with significant impact — such as in hiring, law enforcement or credit scoring — individuals must be informed that an automated system is involved and given a way to challenge decisions.
AI operators would also need to maintain documentation and audit trails to ensure explainability and traceability.
Data protection and alignment with existing laws
The bill aligns closely with Nigeria’s Data Protection Act of 2023 and requires all AI systems to comply with established data protection standards. Developers must ensure that personal data used in AI training or operations is processed lawfully and without discrimination based on characteristics such as gender, race or religion.
The bill is also designed to connect with existing digital governance institutions, including the Nigeria Data Protection Commission and the National Information Technology Development Agency. It does not state where the new council would be housed.
Regulation of foreign AI platforms
Foreign-developed AI systems would also need to be registered and approved before deployment in Nigeria. The bill gives the council authority to restrict or ban AI tools that do not meet local standards or are deemed threats to national security or public interest.
The council would be empowered to investigate complaints, suspend or withdraw approvals and impose penalties. Non-compliant AI systems could be blocked or taken offline. Affected individuals would be able to submit complaints and seek remedies through council channels.
Capacity building and inclusion
The bill encourages partnerships with academia and the private sector to support training, research and innovation. It also seeks to promote digital inclusion for women, underserved regions and marginalized groups.
Concerns and criticism
Some stakeholders have raised concerns about the bill’s broad definition of AI, which could place basic automation under regulatory oversight and increase compliance burdens. Critics warn that registration and licensing could create bureaucratic obstacles for startups and innovators.
There are also concerns about regulatory overlap with bodies such as NITDA, the NDPC, the Nigerian Communications Commission and the Central Bank of Nigeria. Others warn that the council’s power to suspend AI systems deemed contrary to “national interest” could open the door to overreach or censorship.
AI regulation across Africa
Nigeria’s effort reflects broader regional activity. Mauritius, Egypt and Kenya have launched national AI strategies, while Rwanda and South Africa are finalizing their frameworks. However, Nigeria’s approach differs by emphasizing regulatory control, registration and licensing, while other countries focus more on capacity building and innovation.
If passed, Nigeria would become one of the first African countries to embed AI regulation into law rather than policy.
A balancing act ahead
The Artificial Intelligence Control and Regulation Bill represents Nigeria’s attempt to balance innovation with public protection. Its long-term impact will depend on implementation, the capacity of the proposed council and whether regulation can keep pace with rapidly evolving technology.
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