Nigeria is on the brink of a defining moment in its digital evolution, as lawmakers move to pass a sweeping law that would place the country among the first in Africa to formally regulate artificial intelligence across the entire economy.
The National Digital Economy and E-Governance Bill, expected to be approved by the National Assembly before the end of March, would shift Nigeria from voluntary AI guidelines to enforceable, economy-wide rules. The legislation is designed to close a regulatory gap that has existed since the release of Nigeria’s draft national AI strategy in 2024, at a time when AI adoption is accelerating across finance, public services and private industry.
If enacted, the law would grant regulators extensive authority over data use, algorithms and digital platforms that increasingly shape decision-making in both the public and private sectors. A core feature of the framework is its risk-based approach: higher-risk AI systems, such as those used in finance, public administration, surveillance and automated decision-making, would be subject to deeper scrutiny than lower-risk applications.
Developers of such systems would be required to submit annual impact assessments detailing potential risks, mitigation strategies and performance metrics. Regulators, in turn, would have the power to demand information, issue compliance directives, and suspend or restrict AI systems deemed unsafe or non-compliant.
For the first time in Nigeria, AI deployments could also carry direct financial consequences. The bill allows authorities to impose penalties of up to ₦10 million or as much as 2% of an AI provider’s annual revenue generated in Nigeria, marking a significant step toward accountability even though enforcement details are still being clarified.
Beyond oversight, the proposed law seeks to balance regulation with innovation. It introduces regulatory sandboxes that would allow startups, research institutions and other organisations to test AI systems under supervised conditions, ensuring that local innovation is not stifled as governance tightens.
According to Kashifu Abdullahi, director-general of the National Information Technology Development Agency (NITDA), the intent is to regulate AI early rather than react after problems emerge. He argues that clear safeguards and guardrails are essential to ensure AI systems operate within acceptable ethical and societal boundaries, while also enabling authorities to detect and contain misuse.
Nigeria’s approach mirrors emerging frameworks in other parts of the world, emphasising transparency, fairness and accountability throughout the AI lifecycle. While several African countries have published AI strategies, few have moved toward comprehensive, enforceable legislation. That places Nigeria at the forefront of AI governance on the continent.
The implications extend beyond national borders. A clear legal framework could reshape how multinational technology companies, from US-based firms like Google to Asian cloud providers, design and deploy AI products in Africa’s most populous country.
If passed, the bill would signal Nigeria’s ambition not only to harness artificial intelligence for economic growth and improved governance, but also to shape how the technology is built, deployed and trusted, setting a potential benchmark for AI regulation across Africa.
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