Nigeria is set to introduce a groundbreaking law to regulate Artificial Intelligence (AI), positioning itself among the first African nations to enact comprehensive AI governance. The National Digital Economy and E-Governance Bill, expected to be approved by the end of March, will grant regulators broad authority over data, algorithms, and digital platforms.
Central to the bill is a risk-based framework, which imposes stricter oversight on high-risk AI systems—such as those used in finance, public administration, surveillance, and automated decision-making. Developers of these systems will be required to submit annual impact assessments outlining potential risks, mitigation strategies, and system performance.
Under the proposed law, penalties could reach ₦10 million (approximately $7,000) or 2% of an AI provider’s annual revenue generated in Nigeria for non-compliance. The legislation seeks to establish ethical standards around transparency, fairness, and accountability, addressing regulatory gaps that have persisted since Nigeria unveiled its draft AI strategy in 2024.
Kashifu Abdullahi, Director General of the National Information Technology Development Agency (NITDA), told Bloomberg that the goal is to regulate AI early as adoption accelerates across the economy. He emphasized that effective AI governance requires clear safeguards to ensure systems operate within defined boundaries, enabling authorities to detect and prevent misuse by bad actors.
According to Abdullahi, the regulation is designed to guide innovation rather than stifle it, shaping market practices and social outcomes to encourage responsible and beneficial AI use. He added that strong safeguards will help regulators identify risks early and prevent harmful deployments before they spread.
