Nigeria is on the cusp of passing a law aimed at regulating artificial intelligence, reports Bloomberg.
The National Digital Economy and E-Governance Bill is aimed at providing regulators with new levers of control over algorithms, data, and digital platforms. AI systems deemed to be of higher risk – such as those used for decision automation, financial services, public administration, and surveillance - would be regulated more tightly, with developers required to file yearly impact assessments detailing risks, mitigation measures and performance.
The bill is expected to be approved by the end of March. According to Kashifu Abdullahi, director general of the National Information Technology Development Agency, Nigeria’s goal is to get ahead in regulating AI as adoption gains traction across the financial, private and public sectors, rather than having to play catch-up.
“You cannot be ahead of innovation,” said Abdullahi, “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 regulation would establish standards around accountability, ethics and transparency, adopting a risk-based approach broadly in line with regulatory developments in Europe and certain Asian markets. This could force international companies to adopt a new approach to their operations in Nigeria.
Under the proposed legislation, regulators would be able to requisition information and enforce directives, as well as restrict or suspend AI systems that do not meet certain criteria. The bill includes provisions aimed at boosting innovation, with startups and other organisations able to conduct supervised tests of new AI technologies in a controlled environment. Regulators will be able to impose fines of up to NGN10 million (£7,000) or 2% of an AI firm’s gross revenue from Nigeria.
“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,” said Abdullahi. “That way, if there are bad actors, you can easily detect and contain them.”
If the bill passes, Nigeria will be one of the first African countries to implement nationwide regulation aimed at AI, noted Abdullahi. Along with countries such as Benin, Egypt, and Mauritius, Nigeria published a draft AI strategy in 2024 but has not introduced any formal legislation.
