Nigeria is on track to become one of the first countries on the African continent to establish a formal legal framework to regulate artificial intelligence, as lawmakers prepare to approve a bill designed to tighten oversight of the rapidly expanding digital technology sector.
The proposed National Digital Economy and E-Governance Bill, which is expected to be passed by the National Assembly by the end of March, would grant regulators sweeping authority over data governance, algorithms and digital platforms. Advocates say the measure seeks to close a regulatory gap that has existed since the government published a draft national AI strategy in 2024 but took no concrete legal steps to enforce it.
Under the bill’s provisions, systems deemed to carry higher risk particularly those used in financial services, public administration, surveillance and automated decision-making would be subject to more stringent scrutiny. Companies and developers deploying such technologies would be required to prepare and submit annual impact assessments detailing potential risks, mitigation strategies and overall system performance.
The legislation is intended to guide the development of artificial intelligence from an early stage, rather than seeking to regulate technologies after they have become entrenched. This proactive approach reflects concerns among policymakers that adoption in key sectors, including banking, public services and private industry, is accelerating faster than existing laws can manage.
Kashifu Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), has emphasised that appropriate regulation is vital to ensure that emerging technologies operate within ethical and societal boundaries. Speaking to international media, he said that if enacted, Nigeria would be among the first African nations to adopt a comprehensive, economy-wide AI regulatory framework.
While several African states, such as Mauritius, Egypt and Benin, have published national strategies or policy documents related to artificial intelligence, few have enacted binding legislation to govern its use. Experts have argued that regulation is necessary to both harness the economic potential of AI and to protect citizens against its risks, particularly in areas like data privacy, consumer protection and automated decision-making.
The draft bill includes provisions for enforcement and compliance, allowing regulators to impose fines potentially up to 10 million naira or as much as two per cent of annual revenue generated in Nigeria by an AI provider although details of how such penalties would be applied and enforced remain to be clarified.
In addition to oversight mechanisms, the legislation would empower authorities to demand information from developers, issue directives to ensure compliance, and even suspend or restrict systems that are deemed unsafe or non-compliant. It also proposes regulatory “sandboxes” where startups and institutions could test AI systems under supervised conditions, an idea advocates say would balance innovation with safety.
The move comes amid broader calls within Nigeria for a legal framework that can support responsible AI adoption. Higher education leaders and technology experts have urged the government to strengthen regulatory structures, set clear goals for implementation and ensure that governance frameworks are capable of managing ethical and technical challenges.
As Nigeria approaches the final stages of deliberation on the bill, stakeholders both within government and the private sector will be watching closely. The new law could not only reshape how AI is developed and deployed locally but also set a precedent for other African nations seeking to manage the opportunities and risks presented by this transformative technology.
