This is as lawmakers advance a landmark bill aimed at strengthening digital governance across the economy.
The National Assembly is expected to consider the National Digital Economy and E-Governance Bill before the end of March 2026, a move that would mark a decisive shift from voluntary AI guidelines to enforceable regulation in West Africa’s largest economy.
If passed, the legislation would establish clear standards governing the use of AI, data management, and algorithmic systems across both the public and private sectors.
The proposed law is designed to give regulators broad oversight powers over digital platforms and emerging technologies that increasingly shape financial services, public administration, healthcare, and commerce. It would also introduce penalties for non-compliance, including fines of up to 2% of annual revenue or fixed monetary sanctions, depending on the breach.
Senior International Trade Consultant Colin Nweke described the bill as a significant milestone in the maturation of Nigeria’s digital economy, with important implications for investment and competitiveness, particularly in high-growth sectors such as fintech and technology services.
From an economic perspective, Nweke noted that binding AI regulation could raise the cost of doing business in the short term. Startups and large technology firms alike may need to invest in legal expertise, compliance teams, and reporting systems that were not previously required. These added costs could weigh on early-stage investors assessing market entry or expansion in Nigeria.
However, he also pointed to potential longer-term benefits. Clear and predictable rules around data governance, algorithmic accountability, and risk management could reduce uncertainty and improve investor confidence. “Regulation can replace fragmented voluntary guidelines with a single, coherent legal framework, which is often what serious investors look for,” he said.
Asked whether the proposed law should be viewed as a constraint on innovation or an economic enabler, Nweke emphasised its role in building trust and productivity. By establishing enforceable standards for AI use, Nigeria would position itself among a small group of African economies moving decisively from policy strategies to operational governance.
Trust, he argued, is critical for consumers, businesses, and international partners, particularly as AI systems become more deeply embedded in financial services and public sector decision-making. Over time, stronger trust and regulatory clarity could support sustainable innovation, responsible adoption of AI, and broader participation in Nigeria’s digital economy.
If approved, the legislation would place Nigeria at the forefront of AI regulation on the continent, potentially setting a reference point for other African countries weighing how to balance innovation, investment, and digital accountability.
–ChannelAfrica–
