Nigeria is moving closer to adopting one of Africa’s most comprehensive artificial intelligence regulatory frameworks, with lawmakers targeting the end of March 2026 for passage of the National Digital Economy and E-Governance Bill. The proposed legislation would formally regulate AI systems across the economy, marking a decisive shift from voluntary guidelines to enforceable legal standards. If enacted, it would position Nigeria as a regional frontrunner in shaping how emerging technologies are governed.
Legislative Momentum in the National Assembly
The National Assembly has accelerated deliberations on the bill as digital technologies become more embedded in both public administration and private enterprise. Lawmakers view the proposed framework as a necessary response to the rapid adoption of AI-driven tools in sectors ranging from finance to public service delivery. The push reflects a broader policy objective to align Nigeria’s digital transformation with clear rules and institutional oversight.
Scope and Regulatory Powers
At the core of the bill is the creation of enforceable standards governing data usage, algorithmic systems, and digital platforms operating in Nigeria. Regulators would be granted wide-ranging authority to request information, monitor compliance, and intervene where AI systems pose risks to individuals or institutions. This approach aims to strengthen accountability as automated technologies increasingly influence economic and social outcomes.
High-Risk AI and Compliance Obligations
The legislation introduces heightened scrutiny for AI applications considered high risk, particularly those deployed in finance, public administration, and automated decision-making. Developers and providers of such systems would be required to submit annual impact assessments detailing performance, potential harms, and mitigation measures. Authorities would also retain the power to suspend or restrict systems deemed unsafe or non-compliant.
Penalties and Enforcement Signals
To reinforce compliance, the bill empowers regulators to impose financial penalties for violations of the law. Fines could reach up to ₦10 million or as much as 2 percent of a provider’s annual revenue generated in Nigeria. While enforcement mechanisms are still being clarified, the inclusion of monetary sanctions signals a more assertive regulatory stance toward AI deployments.
Balancing Innovation Through Sandboxes
Alongside stricter oversight, the proposed law seeks to preserve space for innovation through the introduction of regulatory sandboxes. These controlled environments would allow startups, researchers, and institutions to test AI systems under regulatory supervision. Supporters argue this mechanism could help local innovators develop compliant technologies without stifling experimentation.
Closing a Policy Gap and Global Implications
The bill is also intended to bridge a regulatory gap that has existed since Nigeria released a draft national AI strategy in 2024. By translating policy ambitions into binding rules, the government aims to provide clarity for domestic firms and international technology companies operating in the country. The framework could influence how global providers structure their AI services in Africa’s largest economy.
Nigeria’s Position in the African Context
Across the continent, several countries including Egypt, Mauritius, and Benin have outlined national AI strategies, but few have advanced toward binding legislation. Nigeria’s proposal adopts a risk-based model similar to those emerging in Europe and parts of Asia, emphasizing transparency, fairness, and accountability throughout the AI lifecycle. This alignment could enhance regulatory credibility while fostering cross-border cooperation.
As the March 2026 deadline approaches, the National Digital Economy and E-Governance Bill represents a pivotal moment in Nigeria’s digital governance journey. Its passage would signal a commitment to managing AI’s opportunities and risks through law rather than informal guidance. If successfully implemented, the framework could set a benchmark for AI regulation across Africa while shaping Nigeria’s role in the global technology landscape.