Africa first: Nigeria set to approve landmark AI rules for digital economy

Nigeria is set to approve a legislative framework to regulate artificial intelligence, placing it among the first African countries to oversee an ever-expanding digital landscape and economy.

Although Nigeria published its draft AI strategy in 2024, the loopholes still existed in regulation.

On the contrary, to-be-passed the National Digital Economy and E-Governance Bill will give authority to National Information Technology Development Agency (NITDA) over algorithms, data, and digital platforms.

Key postulates of legislative framework

• AI systems and tools used in public administration, finance, automated decision-making, and surveillance would be subjected to closer scrutiny and annual audits.
• Developers of AI systems would be required to obtain a formal license or registration before deployment.
• In the case of non-compliance, the proposal would entitled regulators to impose fines of as much as 10 million naira ($7000) or 2 percent of AI provider’s annual gross revenue.
• The legislative bill also aims to adopt a proactive and risk-based approach to regulate artificial intelligence.
• Moreover, the bill would also ensure ethical standards based on fairness, accountability, and transparency.
• Under the proposed law, regulators would be empowered to demand information, release enforcement directives, and block or restrict unsafe or harmful AI systems.
• It also provides a safe and controlled AI ecosystem for startups to promote innovation.

“You cannot be ahead of innovation, but regulation is not just about giving commands. It’s about influencing market, economic and societal behaviour so people can build AI for good,” Kashifu Abdullahi, director general of the National Information Technology Development Agency, said.

The lawmakers are expected to approve this landmark AI bill by March 2026.

If this legislation passed, Nigeria would become a pioneer and one of the first African nations to adopt a comprehensive regulatory regime for AI.

Egypt, Benin and Mauritius have AI strategies but have fallen short in legislation.