Nigeria Set to Lead Africa with First Economy-wide AI Regulations
Nigeria is preparing to approve legislation that will position the country at the forefront of African nations aiming to regulate artificial intelligence (AI). This marks a significant shift after years of minimal oversight of tech companies in one of the continent’s largest digital economies.
The National Digital Economy and E-Governance Bill
The National Digital Economy and E-Governance Bill will grant regulators authority over data, computer algorithms, and online platforms. The legislation aims to fill a regulatory gap that has persisted since Nigeria released its draft AI plan in 2024.
Lawmakers anticipate that the bill will be approved before the end of March. Once enacted, the law will impose stricter controls on AI systems identified as higher risk, including those utilized in banking, government operations, monitoring activities, and automated decision-making. Companies developing these systems will be required to submit annual reports detailing potential risks, mitigation strategies, and operational efficacy.
Penalties and Enforcement
Under the proposed regulations, regulators will have the authority to impose fines up to 10 million naira (approximately $7,000) or 2% of an AI company’s annual revenue in Nigeria. However, the bill lacks clarity on the criteria for determining these penalties.
Kashifu Abdullahi, head of the National Information Technology Development Agency, emphasized the importance of establishing governance frameworks: “In the area of governance, we need to put the safeguards and guardrails in place to ensure that the AI we are building is within that guardrail. That way, if there are bad actors, you can easily detect and contain them.”
Continental Push for AI Development
African leaders are actively working to accelerate AI adoption across the continent. This initiative was highlighted during the inaugural Global AI Summit on Africa, held in Rwanda on April 3–4, 2025. The summit convened policymakers, business leaders, and stakeholders to strategize Africa’s role in the global AI economy.
The summit resulted in the Africa Declaration on Artificial Intelligence, which received backing from forty-nine African countries, the African Union, and Smart Africa. This declaration follows the African Union Continental AI Strategy from 2024, which aims to enhance seven key areas: talent, data, infrastructure, market, investment, governance, and collaboration between institutions.
Additionally, a $60 billion Africa AI Fund and an Africa AI Council have been announced to propel AI projects forward, particularly in governance.
Global Context
In a related global context, China recently released draft regulations aimed at limiting AI chatbots from influencing human emotions in potentially harmful ways. These proposed regulations specifically target services that mimic human interaction through text, images, sound, or video. Feedback on the draft is due by January 25.
This new regulatory landscape signifies a crucial step for Nigeria and Africa in embracing and controlling the rapid advancements in AI technology.
