Nigeria is set to introduce significant regulations governing artificial intelligence (AI) with the National Digital Economy and E-Governance Bill, expected to be approved by March 2026. This legislative initiative aims to ensure oversight of data, algorithms, and digital platforms, particularly for “higher-risk” AI systems used in finance, public administration, and surveillance.
The law will empower lawmakers to require assessments from developers regarding potential risks and performance metrics of their AI systems. It also grants authorities the ability to suspend or restrict AI systems that are found to be unsafe or non-compliant. Additionally, penalties for non-compliance could reach up to NGN10 million (about £7,000) or 2% of an AI provider's gross revenue in Nigeria.
Kashifu Abdullahi, director general and CEO of Nigeria’s National Information Technology Development Agency, highlights the urgency of these regulations, positioning Nigeria as a potential leader in AI governance in Africa. Meanwhile, MTN Group has announced a substantial commitment of $240 million to build a data center in Nigeria, part of a broader $1 billion investment, indicating growing global interest in the country's digital landscape.