Grace Ashiru
Nigeria is set to approve a comprehensive legislative framework to regulate artificial intelligence (AI), positioning the country as one of the first in Africa to establish binding oversight of the rapidly growing digital economy.
Although Nigeria published a draft national AI strategy in 2024, there have been lingering regulatory gaps. These are now poised to be addressed through the proposed National Digital Economy and E-Governance Bill, which will grant the National Information Technology Development Agency (NITDA) formal authority over algorithms, data governance, and digital platforms.
If the bill is passed, it will introduce a structured, risk-based approach to AI regulation, emphasizing ethical use, transparency, and accountability.
Under the proposed framework, AI systems used in public administration, finance, automated decision-making, and surveillance will face heightened scrutiny, including mandatory annual audits. Developers will also be required to obtain formal licenses or registrations before deploying AI systems in the Nigerian market.
The legislation will also give regulators the power 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. Regulatory authorities will be empowered to demand information, issue enforcement directives, and block or restrict AI systems deemed unsafe or harmful.
At the same time, the bill seeks to strike a balance between oversight and innovation. It includes provisions aimed at supporting startups and early-stage companies by creating a controlled and safe AI ecosystem that encourages experimentation while managing risks.
“You cannot be ahead of innovation, but regulation is not just about giving commands,” said Kashifu Abdullahi, the director general of NITDA. “It’s about influencing market, economic, and societal behavior so people can build AI for good.”
Lawmakers are expected to approve the bill by March 2026. If enacted, Nigeria will become one of the first African countries to introduce a comprehensive, enforceable regulatory framework for artificial intelligence.
While several other African countries, including Egypt, Benin, and Mauritius, have developed national AI strategies, they have yet to turn these policies into dedicated AI legislation. Nigeria’s move could thus set an important precedent for AI governance across the continent.
