Nigeria has taken a major step toward formal regulation of artificial intelligence (AI) with the introduction of a new bill that would make registration and licensing compulsory for anyone developing or using AI technologies in the country. The proposed legislation, tagged A Bill for an Act to Ensure Proper Control of Usage of Artificial Intelligence (AI) Technology in Nigeria and for Related Matters, 2023, was sponsored by Sada Soli, who represents Jibia/Kaita Federal Constituency of Katsina State. It received its first reading at the House of Representatives on November 22, 2023.
If passed, the bill would establish Nigeria’s first legal and institutional framework for governing AI, setting standards for ethical use, oversight, and accountability in a fast-evolving digital economy.
At the heart of the proposed law is the creation of a National Artificial Intelligence Council, which would serve as Nigeria’s top regulatory authority for AI development and deployment. The council would be responsible for controlling, supervising, and approving all AI-related activities in the country. Its functions would include issuing guidelines, setting technical and ethical standards, conducting audits, and enforcing compliance through sanctions or suspensions where necessary.
The council would also have sweeping powers to approve or restrict AI solutions developed domestically or imported from abroad. This provision means that both local startups and foreign firms offering AI-based products and services in Nigeria would be subject to the same registration and approval requirements.
According to the bill, the council’s mandate extends beyond mere enforcement. It is tasked with promoting safe and ethical use of AI, aligning Nigeria’s technological advancement with human rights, public safety, and national security priorities.
Mandatory registration and licensing
One of the most significant provisions in the bill is the mandatory registration and licensing requirement. It proposes that any person or organisation that develops, imports, distributes, or uses an AI system in Nigeria must register with the council and obtain official approval before deploying or operating the system.
However, this does not automatically apply to ordinary users of AI tools like ChatGPT or Claude. The requirement mainly targets those who build, sell, or integrate AI systems into commercial products or services. In other words, if you are simply using a public AI tool for personal study, work, or communication, you would likely not need to register under the current draft.
The bill also introduces a risk-based classification system for AI technologies, ranking them from low to high risk. High-risk systems—such as those used in healthcare, finance, public services, or national security—would be subject to tighter regulation. Developers of such systems would be required to conduct impact assessments, disclose their data sources and algorithm designs, and undergo regular compliance reviews.
The bill effectively introduces a licensing regime similar to those seen in other regulated sectors like telecommunications and financial services. Failure to obtain approval or licence could lead to fines, suspension, or the forced shutdown of non-compliant AI-enabled products and services.
“The requirement mainly targets those who build, sell, or integrate AI systems into commercial products or services.”
Ethical use, transparency, and accountability
Beyond licencing, the bill emphasises ethical principles and transparency in the development and use of AI. It mandates that AI systems must be safe, fair, and non-discriminatory, ensuring they do not violate human rights or national interests. Developers and deployers would be required to keep comprehensive records of their systems, including design processes, data sources, and operational use, for inspection and audit by the council.
In cases where AI systems make automated decisions that significantly affect individuals, such as in credit scoring, hiring, or law enforcement, users must be informed that they are interacting with an AI system. The bill also requires that affected persons have access to an explanation or a process to contest decisions made by AI—an attempt to address the so-called “black-box problem” of algorithmic opacity.
To further enhance accountability, AI operators must maintain clear documentation and audit trails. These measures are designed to make AI operations explainable and traceable, ensuring that harm or bias can be identified and corrected.
Data protection and alignment with existing laws
The AI bill closely aligns with Nigeria’s Data Protection Act (2023), requiring all AI technologies to comply with established data protection principles, including lawfulness, fairness, transparency, and purpose limitation.
Developers and deployers of AI systems must ensure that personal data used in model training or operations is obtained and processed in line with the Data Protection Act. They must also take steps to prevent discrimination or bias based on sensitive characteristics like gender, race, or religion.
This alignment seeks to integrate Nigeria’s growing digital governance ecosystem, linking the new AI oversight framework with existing institutions like the Nigeria Data Protection Commission (NDPC) and the National Information Technology Development Agency (NITDA). The bill does not state whether the council will sit under any of these public institutions.
“In cases where AI systems make automated decisions that significantly affect individuals, such as in credit scoring, hiring, or law enforcement, users must be informed that they are interacting with an AI system.”
Import controls and foreign AI platforms
A significant clause in the bill addresses foreign AI systems and imports. It mandates that any AI system developed abroad but deployed in Nigeria must also be registered and approved by the council.
This provision gives the government power to restrict or ban AI platforms that fail to comply with Nigeria’s local standards or are deemed threats to national security or public interest. This could impact global AI providers offering generative AI tools, chatbots, or automated analytics platforms in Nigeria without a local regulatory presence.
The proposed council would have robust enforcement powers. It could investigate complaints, suspend or withdraw approvals, and impose administrative penalties on violators. Non-compliant AI systems could be taken offline or blocked altogether.
For individuals or entities harmed by AI decisions, the bill provides an avenue for reporting and remediation. Affected persons can submit complaints directly to the council through yet-to-be determined channels. The council is mandated to investigate and, where appropriate, compel compensation or corrective action.
Capacity building and inclusion
In addition to regulation, the bill encourages capacity building, research, and training in AI-related fields. It calls for public-private partnerships, collaboration with academic institutions, and the promotion of local innovation under government oversight.
There are also provisions aimed at ensuring inclusivity, seeking to prevent digital divides and promote equal access to AI tools among women, underserved regions, and marginalised groups.
Concerns and controversies
While the proposed bill marks a major milestone in Nigeria’s digital policy landscape, there are some concerns.
The broad definition of an AI system as any software, hardware, or hybrid that utilises AI techniques to perform tasks with varying levels of autonomy, as proposed in the bill, could bring a wide range of digital technologies, from basic automation software to advanced machine learning systems, under regulation. This could create unnecessary compliance burdens and stifle innovation.
Also, the registration and licensing process could become bureaucratic, deterring startups and small innovators who may lack the resources to navigate complex approval procedures. One AI industry executive fears that overlapping jurisdictions with existing bodies such as NITDA, NDPC, the Nigerian Communications Commission (NCC), and the Central Bank of Nigeria (CBN) could lead to regulatory duplication or conflict.
There is also the potential for overreach, especially if the overseeing council is granted powers to suspend or restrict AI systems deemed “contrary to national interest.” Such provisions could be misused to limit access to foreign platforms or censor online tools under broad security justifications.
“One AI industry executive fears that overlapping jurisdictions with existing bodies… could lead to regulatory duplication or conflict.”
Africa’s growing AI regulation landscape
Nigeria’s move mirrors broader trends across Africa, where several countries are advancing AI governance frameworks. Mauritius, Egypt, and Kenya have all launched national AI strategies, while Rwanda and South Africa are finalising their own policy frameworks.
Kenya’s National AI Strategy (2025–2030) focuses on inclusion and ethics, while Egypt’s AI plan prioritises public-sector deployment and safety. Mauritius remains the only African country with a comprehensive national AI strategy already in force.
Nigeria’s draft Bill focuses on oversight, registration, ethical use, transparency, and accountability in AI development and deployment. These priorities align with the goals of Mauritius, Egypt, and Kenya, which have also sought to harness AI for economic growth while managing risks. Kenya’s AI Strategy 2025–2030, for instance, outlines pillars such as infrastructure, research, governance, and talent development, while Egypt’s strategy targets AI integration in public services and education. Mauritius, meanwhile, promotes innovation through tax incentives and AI capability building.
Where Nigeria diverges is in its regulatory approach. While Mauritius, Egypt, and Kenya focus on enabling innovation through research, capacity building, and supportive ecosystems, Nigeria’s bill leans heavily on control and compliance. It mandates registration, licensing, and strict oversight of developers and users before deployment. In contrast, the other countries balance governance with innovation—creating AI hubs, encouraging private-sector partnerships, and offering incentives. Nigeria’s prescriptive stance may strengthen accountability but could also raise concerns about flexibility and how innovation will thrive under tighter regulation.
Nigeria’s bill, if passed, would make it one of the first countries on the continent to anchor AI regulation in law rather than policy.
A balancing act ahead
The Artificial Intelligence Control and Regulation Bill marks Nigeria’s attempt to balance innovation with control, and progress with protection. It reflects the country’s growing recognition of AI’s potential to drive economic transformation, and the equally pressing need to manage its risks.
Yet, the success of this framework will depend on how it is implemented. Will the National AI Council act as a facilitator rather than a barrier to innovation? Can Nigeria build the technical expertise and institutional capacity needed to regulate a technology evolving faster than any lawmaker can draft?
