In what marks the first major regulatory clampdown on artificial intelligence in Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has unveiled tough rules to rein in corporate organisations using automated technology, chatbots, and algorithms to market products to local consumers.
Under the proposed Sales Promotion Regulations 2026 released on September 30, corporate offenders face administrative fines of up to N100 million or one per cent of their previous year’s gross turnover, whichever is higher.
The watchdog has also put company directors directly on the spot, warning that executives could be barred from holding board seats for up to five years, in addition to facing personal fines of N50 million, if their firms break the rules.
The sweeping proposal comes at a time when commercial banks, telecommunications operators, fintech startups, and online retailers are aggressively adopting AI-driven promotional tools, automated bulk messaging, and synthetic characters to engage customers.
Under the draft framework, any company that uses AI systems, automated messaging, or virtual influencers to run marketing campaigns aimed at Nigerian consumers must formally register the technology with the commission.
The FCCPC is also demanding full transparency, directing that any promotional material created by artificial intelligence must be clearly labelled so consumers know they are interacting with machine-generated content rather than human representatives.
Crucially, the regulator is closing the door on businesses seeking to blame software errors for misleading advertisements. The draft establishes that companies will be held strictly liable for any deceptive claims, discriminatory outcomes, or manipulative sales tactics produced by their automated tools.
To protect everyday consumers who are routinely inundated with promotional text messages and algorithmic nudges, the regulations mandate that businesses provide a straightforward, cost-free option to opt out of automated marketing entirely.
The commission has also introduced fines of up to N10 million for specific promotional abuses, including reneging on advertised prizes, violating competition rules, or tendering false statements to regulators.
The move reflects growing calls across the technology ecosystem for enforceable regulatory boundaries. Industry experts, including CarbonAI Founder and Chief Executive Debola Ibiyode, had earlier warned that while artificial intelligence offers enormous economic promise, deploying the technology without legal guardrails creates severe risks capable of undermining consumer trust and corporate investment.
With the release of the draft rules, the FCCPC appears determined to draw a firm line in the sand, ensuring that corporate Nigeria’s race toward digital automation does not come at the expense of consumer rights and market transparency.
