Nigeria is preparing to approve a comprehensive legislative framework to regulate artificial intelligence, positioning the country among the first in Africa to introduce binding oversight of a rapidly expanding digital economy.
While Nigeria published a draft national AI strategy in 2024, regulatory gaps have remained. These are now set to be addressed through the proposed National Digital Economy and E-Governance Bill, which would grant the National Information Technology Development Agency (NITDA) formal authority over algorithms, data governance and digital platforms.
If passed, the bill would introduce a structured, risk-based approach to AI regulation, with a focus on ethical use, transparency and accountability.
Under the proposed framework, AI systems deployed in public administration, finance, automated decision-making and surveillance would be subject to enhanced scrutiny, including mandatory annual audits. Developers would be required to obtain formal licences or registrations before deploying AI systems in the Nigerian market.
The legislation would also empower regulators to impose penalties for non-compliance, including fines of up to 10 million naira, approximately $7,000, or up to 2 percent of an AI provider’s annual gross revenue. Regulators would have the authority to demand information, issue enforcement directives and block or restrict AI systems deemed unsafe or harmful.
At the same time, the bill seeks to balance oversight with innovation. It includes provisions designed to support startups and early-stage companies by creating a safe and controlled AI ecosystem that encourages experimentation while managing risk.
“You cannot be ahead of innovation, but regulation is not just about giving commands,” said Kashifu Abdullahi, director general of NITDA. “It’s about influencing market, economic and societal behaviour so people can build AI for good.”
Lawmakers are expected to approve the bill by March 2026. If enacted, Nigeria would become one of the first African countries to introduce a comprehensive, enforceable regulatory regime for artificial intelligence.
Several other African countries, including Egypt, Benin and Mauritius, have developed national AI strategies, but have yet to translate those policies into dedicated AI legislation. Nigeria’s move could therefore set an important precedent for AI governance across the continent.
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