Nigeria Poised to Pass Sweeping AI Law, Establishing Africa’s First Comprehensive Digital Governance Regime

Nigeria is on the cusp of a historic legislative milestone that could position it as Africa’s foremost regulatory pioneer in artificial intelligence. The National Digital Economy and E-Governance Bill, which lawmakers expect to approve by the end of March, is set to grant regulators expansive new powers over data, algorithms, and digital platforms, filling a long-standing vacuum in the continent’s largest digital market .

The bill represents a paradigm shift from the era of unchecked expansion by global technology firms. If passed, it will subject higher-risk AI systems—particularly those deployed in finance, public administration, surveillance, and automated decision-making—to rigorous annual impact assessments. Developers will be required to file detailed reports on risks, mitigation measures, and performance metrics .

Kashifu Abdullahi, Director General of the National Information Technology Development Agency (NITDA), emphasized the proactive nature of the legislation. “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,” he stated. “That way, if there are bad actors, you can easily detect and contain them” .

The proposed law adopts a risk-based approach similar to frameworks emerging in Europe and Asia, creating a dual regulatory structure alongside the Nigeria Data Protection Commission (NDPC) . It empowers regulators to levy fines of up to ₦10 million ($7,000) or 2% of an AI provider’s annual gross revenue from Nigeria. Crucially, the bill also provides for controlled “regulatory sandboxes”—supervised testing environments where startups and institutions can experiment with new technologies without fear of immediate sanction, fostering innovation while containing potential harm .

Dr. Vincent Olatunji, National Commissioner of the NDPC, noted that the law builds on momentum generated since the signing of the Nigeria Data Protection Act in 2023, positioning Nigeria as a growing force in the global data protection ecosystem . The move has attracted international attention, with Professor Abejide Ade-Ibijola of the Johannesburg Business School commenting that if Nigeria gets this bill right, many African countries will likely adapt its framework for their own contexts