The Federal Competition and Consumer Protection Commission (FCCPC) is proposing new regulations that could introduce stricter requirements for businesses using artificial intelligence, machine learning and other automated technologies for marketing and consumer engagement in Nigeria.
The proposed measures are contained in the draft Sales Promotion Regulations, 2026, released by the FCCPC on September 30, 2026.
Under the proposed framework, businesses that use AI, machine learning or automated systems for sales promotions, marketing communications or consumer engagement targeting or accessible to Nigerian consumers would be required to register such activities with the Commission.
The proposed regulations come amid the rapid adoption of artificial intelligence across Nigeria’s business and technology sectors and seek to establish clearer responsibilities for companies that use automated systems to interact with consumers.
AI-GENERATED MARKETING CONTENT MAY REQUIRE DISCLOSURE
The draft regulations contain a specific section covering what the FCCPC describes as “Artificial Intelligence and Automated Marketing.”
Under the proposal, businesses deploying AI or automated technologies for promotional activities would have to clearly identify content generated or delivered through such systems.
The framework would cover a growing range of marketing technologies, including AI-powered chatbots, virtual influencers and automated messaging platforms.
The FCCPC’s proposed rules also require businesses to ensure that the use of these technologies is transparent and does not involve consumer manipulation, misinformation or the exploitation of personal data and behavioural patterns.
Consumers would also have to be given the option to opt out of automated or AI-driven marketing communications.
BUSINESSES COULD FACE N100M OR 1% TURNOVER PENALTY
The proposed regulations would significantly increase the potential financial consequences for businesses that violate the Sales Promotion Regulations.
Under the draft, an individual who contravenes the regulations could face a fine of up to N50 million.
For corporate entities, the proposed administrative penalty could reach N100 million or 1% of the company’s turnover in the previous financial year, whichever is higher.
The draft further proposes that directors of companies found liable could face additional sanctions, including possible disqualification from serving as directors for a period of up to five years.
Certain violations could attract separate penalties of up to N10 million. These include failing to deliver a prize promised as part of a promotion or failing to comply with the conditions attached to a promotional campaign.
A person who provides false information in an application or undertaking could also face a penalty of up to N10 million under the proposed framework.
COMPANIES WOULD REMAIN RESPONSIBLE FOR AI DECISIONS
One of the significant aspects of the proposal is that businesses may not be able to avoid responsibility for misleading or harmful marketing simply because the content was generated by an AI system.
The draft places responsibility on businesses that deploy AI-generated content or automated promotional systems for the messages, representations and claims produced or communicated through those technologies.
Companies could also be held accountable when automated systems generate promotional material or decisions that are misleading, discriminatory or harmful to consumers.
In practical terms, businesses would remain responsible for the outcomes of the AI tools they use in their marketing activities rather than shifting liability to the technology itself.
FCCPC SEEKS STRONGER AI GOVERNANCE
The proposed framework represents a significant step towards establishing specific regulatory requirements for the use of artificial intelligence in consumer-facing marketing in Nigeria.
The move comes as businesses across different sectors increasingly adopt AI for advertising, customer service, personalised communications and digital promotions.
Experts have previously warned that Nigeria’s growing reliance on AI needs to be accompanied by appropriate safeguards to protect consumers while allowing businesses to benefit from the technology.
Debola Ibiyode, an AI expert and Founder and Chief Executive Officer of CarbonAI, previously warned that inadequate regulatory safeguards could undermine the economic potential of artificial intelligence in Nigeria.
She argued that while AI adoption presents opportunities for creating new economic value, innovation without appropriate safeguards could create risks capable of discouraging investment and reducing the profitability of AI-based solutions.
The FCCPC’s proposed regulations therefore seek to balance technological innovation with consumer protection by establishing clearer obligations for businesses using AI and automated technologies.
However, the measures remain proposals at this stage and could still be subject to further review before becoming enforceable regulations.
