Nigeria is set to pass a law that will put the leading economy at the front of the queue in AI regulation in Africa. It comes as Nigerian President Tinubu is in Abu Dhabi today for the first day of ADSW. Tinubu is accompanied by President Cyril Ramaphosa of South Africa and the President of the Philippines, Ferdinand Marcos Jr.
New Powers
The E-Governance Bill will give regulators new powers over data, algorithms, and digital platforms. The Bill will be a welcome relief for AI firms, operating on the continent, following Nigeria’s draft AI strategy published late in 2024.
Regulation of the Bill
Regulators expect the bill to scrutinise higher-risk AI systems, including those used in finance, public administration, surveillance, and automated decision-making. The bill will require developers to file annual impact assessments on risks, mitigation measures, and performance.
Regulators are also allowed to levy fines of as much as 10M Nigerian Naira ($7, 000), equivalent to 2% of an AI provider’s annual gross revenue, from Nigeria pending compliance issues.
AI in AfricaÂ
If passed, Nigeria will be one of the first African nations to adopt an economy-wide regulatory regime for AI.
Other countries, namely Mauritius, Egypt, and Benin also have AI strategies although each lacks legislation to enact the draft laws.
Ethical standards are also being set with the Bill; the law would set standards for transparency, fairness, and accountability. If passed, this would align Nigeria with emerging legislation on AI in Europe and Asia.
GCC-Nigeria Ties
GCC states have pushed greater FDI into Africa in recent years although West Africa is a new development in the economic partnership.
The UAE has committed to co-financing the $25B Morocco-Nigeria offshore gas pipeline whilst KSA pledged $1.2B.
AI regulation signals growing seriousness on macroeconomic reforms, crucial for investor confidence amid recent governance and long-term security challenges.
AI regulation could be the first step to unlocking huge returns for investors ahead. Nigeria has the fastest growing population in the continent, with an average age of 18. Â
The bill is a monumental step for AI regulation in Africa’s leading economy, Nigerian-GCC ties, and future investment pledges by the bloc.
Stay Up to Date with the Latest Updates at Finance ME!
Abu Dhabi Ethmar and Guggenheim Brothers Media Set-Up New Investment Fund
Defence Stocks Rally in EMEA and APAC with 50% U.S. Spending Boost
Qatar Financial Centre: H.E. Mansoor Rashid Al-Khater Appointed as New CEO
