Nigeria is close to passing landmark legislation to regulate artificial intelligence, positioning itself at the forefront of AI governance in Africa. According to Bloomberg, the proposed National Digital Economy and E-Governance Bill introduces a comprehensive framework to oversee algorithms, data, and digital platforms across the economy.
The bill adopts a risk-based regulatory model. High-risk AI systems, including those used in financial services, public administration, automated decision-making, and surveillance, would face stricter oversight. Developers would be required to submit annual impact assessments detailing system risks, mitigation measures, and performance benchmarks.
Expected to be approved by the end of March, the legislation reflects Nigeria’s ambition to lead rather than react as AI adoption accelerates across both public and private sectors. Kashifu Abdullahi, Director General of the National Information Technology Development Agency, said the goal is to get ahead of the curve as AI becomes embedded in national infrastructure.
“You cannot be ahead of innovation,” Abdullahi said. “But regulation is not just about giving commands. It’s about influencing market, economic and societal behaviour so people can build AI for good.”
The framework establishes standards for accountability, ethics, and transparency, aligning broadly with regulatory approaches emerging in Europe and parts of Asia. This could compel international technology firms to adjust how they deploy and operate AI systems within Nigeria.
Under the bill, regulators would gain powers to requisition information, issue directives, and restrict or suspend AI systems that fail to meet defined criteria. Penalties could reach NGN10 million or 2 percent of an AI firm’s gross revenue from Nigeria.
To balance oversight with growth, the bill also introduces innovation safeguards. Startups and organisations would be allowed to test new AI technologies in supervised environments, enabling experimentation under regulatory guidance.
“In the area of governance, we need to put the safeguards and guardrails in place to make sure the AI we are building is within that guardrail,” Abdullahi said. “That way, if there are bad actors, you can easily detect and contain them.”
If enacted, Nigeria would become one of the first African nations to implement nationwide AI regulation. While countries such as Benin, Egypt, and Mauritius published draft AI strategies in 2024, few have moved toward binding legislation at a national level.
