As artificial intelligence adoption accelerates across key sectors, Nigeria is preparing new legislation to regulate how AI systems are developed, deployed and monitored.
According to a Bloomberg report, the proposed National Digital Economy and E-Governance Bill would expand regulatory oversight of data, algorithms and digital platforms, filling gaps that have remained since Nigeria released its draft national AI strategy in 2024.
Director-General of the National Information Technology Development Agency (NITDA), Kashifu Abdullahi, said the legislation is designed to regulate AI proactively, rather than reacting after widespread adoption. He noted that while several African countries, including Egypt, Mauritius and Benin, have developed AI strategies, few have enacted comprehensive, economy-wide AI laws.
Beyond enforcement, the proposed law sets ethical standards for transparency, fairness and accountability and adopts a risk-based regulatory approach similar to frameworks emerging in Europe and parts of Asia. The move could significantly reshape how global technology companies operate in Africa’s most populous nation.
The bill would further grant regulators authority to demand information, issue compliance directives and suspend or restrict AI systems deemed unsafe or non-compliant. It also provides for controlled testing environments where startups and institutions can develop and trial AI technologies under regulatory supervision, aimed at encouraging innovation while managing risk.
Abdullahi said the goal is to put safeguards in place that allow innovation to thrive while ensuring AI systems are developed responsibly and used for the broader good of society.
Lawmakers are expected to pass the bill by the end of March. If approved, it would impose stricter controls on high-risk AI applications used in areas such as finance, surveillance, public administration and automated decision-making. Developers of such systems would be required to submit annual impact assessments outlining potential risks, mitigation measures and system performance.
The bill also empowers regulators to impose penalties of up to ₦10 million or two per cent of an AI provider’s annual revenue generated in Nigeria.
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