Nigeria is preparing to pass a law to regulate Artificial Intelligence (AI), a move that would place the country among the first in Africa to introduce comprehensive AI legislation.
The National digital Economy and E-Governance Bill is expected to be approved by the end of March and would give regulators wide-ranging powers over data, algorithms and digital platforms.
The bill introduces a risk-based framework; subjecting high-risk AI systems such as those used in finance, public administration, surveillance and automated decision-making to stricter oversight mandating developers of such systems to submit annual impact assessments detailing potential risks, mitigation measures and system performance.
Under the proposed law, regulators could impose fines of up to 10 million naira ($7,000) or 2% of an AI provider’s annual revenue generated in Nigeria.
The legislation aims to establish ethical standards for transparency, fairness and accountability, while closing regulatory gaps that have existed since Nigeria released a draft AI strategy in 2024.
Kashifu Abdullahi, director general of the National Information Technology Development Agency in an interview with Bloomberg said the goal is to regulate AI early as adoption accelerates across the economy.
Abdullahi said effective AI governance requires clear protections to ensure systems are developed within defined boundaries, making it easier for authorities to identify and curb misuse by bad actors.
According to him, regulation is meant to guide innovation rather than outrun it, shaping market practices and social outcomes in a way that encourages responsible and beneficial use of AI.
He noted that establishing firm safeguards around AI development would allow regulators to spot risks early and prevent harmful deployment before it spreads.
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