The Federal Competition and Consumer Protection Commission (FCCPC) is proposing new rules that would subject businesses using artificial intelligence, machine learning and automated technologies for marketing to additional regulatory requirements in Nigeria.
Under the draft Sales Promotion Regulations, 2026, businesses using AI for sales promotions, marketing communications or consumer engagement directed at or accessible to Nigerian consumers would be required to register with the Commission.
The proposed framework, released on September 30, 2026, also introduces tougher financial penalties for breaches, with corporate entities facing fines of up to N100 million or 1% of their previous year’s turnover, whichever is greater.
The draft creates a dedicated framework for what it describes as “Artificial Intelligence and Automated Marketing”, reflecting the growing use of AI tools in advertising, customer engagement and digital promotions.
The proposed rules state that their use in marketing must be transparent and must not involve manipulation, misinformation or exploitation of consumer data or behavioural tendencies.
Businesses would also be required to allow consumers to opt out of automated or AI driven marketing communications.
Beyond the AI provisions, the draft proposes a major increase in the financial consequences for businesses that breach the proposed Sales Promotion Regulations.
According to the proposed regulation, a natural person who contravenes the regulations could face a fine of up to N50 million.
For a corporate entity, the proposed penalty is up to N100 million or 1% of the company’s previous year’s turnover, whichever is greater.
The draft also proposes additional penalties of up to N10 million for specific breaches, including failure to award a promised prize or failure to comply with the terms of a promotion.
A person who makes a false statement in an application or undertaking could also face a penalty of up to N10 million under the proposal.
The proposed framework would place responsibility for AI generated marketing messages and claims on the businesses deploying the technology.
Under the draft, an undertaking using AI generated content or automated promotional systems would be responsible and accountable for representations, messages and claims produced or communicated by those systems.
The rules would also impose liability where an AI system or automated tool produces misleading, discriminatory or harmful promotional outcomes.
This means businesses could not necessarily avoid responsibility for a misleading promotion by attributing the content or decision to an automated system.
The FCCPC’s proposal comes as the first attempt to regulate the use of AI in Nigeria amid rapid embrace of the technology across sectors.
She noted that Nigeria’s growing adoption of AI presents an opportunity to unlock new economic value, but only if governments, businesses and technology providers work together to develop responsible governance frameworks.
