Nigeria’s government is preparing to pass a landmark law aimed at regulating artificial intelligence (AI), which will empower lawmakers to oversee data, algorithms, and digital platforms. As reported by Bloomberg, the National Digital Economy and E-Governance Bill is scheduled for approval by the end of March 2026, following two years of development since the introduction of a draft AI strategy.
The legislation will focus on “higher-risk” AI systems, particularly those utilized in sectors such as finance, surveillance, and public administration. It will mandate developers to provide assessments concerning risk, performance, and the measures taken to mitigate potential threats. This proactive approach aims to keep pace with the rapid adoption of AI technologies within the country.
Kashifu Abdullahi, the director general and CEO of Nigeria’s National Information Technology Development Agency, emphasized the importance of being ahead of the curve in AI regulation. He noted that Nigeria could become one of the first nations in Africa to enforce comprehensive regulations on AI. While countries like Egypt, Mauritius, and Benin have developed AI strategies, they lack formal legislation.
Part of the new law will grant lawmakers the authority to demand information from AI providers, suspend or restrict AI systems deemed unsafe or non-compliant, and establish controlled environments for testing under supervision. Abdullahi stated that these measures are designed to ensure that AI technologies developed in Nigeria operate within established guardrails. “That way, if there are bad actors, you can easily detect and contain them,” he added.
The proposed regulations will also allow authorities to impose fines of up to NGN10 million (approximately £7,000) or 2% of an AI provider’s gross revenue generated in Nigeria. This financial penalty serves as a deterrent against non-compliance and ensures that developers maintain high standards.
In a related development, MTN Group, a South Africa-based telecommunications operator, is intensifying its focus on AI in Nigeria, committing $240 million to establish a data center as part of a broader $1 billion investment in the country. This project is expected to attract participation from global technology giants, including Equinix and Microsoft, underscoring the growing interest in Nigeria’s digital economy.
The upcoming legislation reflects a broader trend as countries worldwide grapple with the implications of AI technologies. As AI systems become increasingly integrated into various sectors, regulators face the dual challenge of fostering innovation while ensuring the safety and ethical use of these technologies. Nigeria’s proactive legislative approach could set a precedent for other nations in the region, highlighting the importance of responsible AI governance.
As the global landscape of AI continues to evolve, the significance of Nigeria’s forthcoming regulations cannot be overstated. By taking decisive steps to regulate AI, Nigeria is positioning itself as a leader in the development of safe and responsible technology practices in Africa.
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