FCCPC to regulate AI marketing, impose N100m fines on violators

On September 30, 2026, Nigeria's Federal Competition and Consumer Protection Commission introduced a draft regulatory framework intended to supervise how artificial intelligence and automated systems are employed in marketing activities directed toward Nigerian consumers. The Sales Promotion Regulations, 2026 would oblige organizations deploying AI, machine learning, or other forms of automated technologies in customer engagement and promotional content to register with the regulator and meet new standards of accountability.

Companies that breach the proposed rules face potential administrative penalties reaching ₦100 million or 1% of their prior year's turnover—whichever exceeds the other. Through establishing this framework, the FCCPC seeks to ensure transparency regarding AI-driven promotional claims and create clear responsibility for automated messaging that reaches Nigerian audiences.

Any enterprise utilizing such technologies for sales promotions, marketing communications, or consumer engagement accessible to Nigerians would fall within the scope of coverage. Artificial intelligence has grown increasingly prevalent in marketing approaches across Nigerian businesses, prompting the FCCPC to fill a significant gap in regulations.

Current consumer protection statutes lack explicit provisions addressing AI-generated or AI-delivered promotional content, leaving unclear which parties are responsible when automated systems disseminate unsubstantiated claims. The proposed regulations would establish a compulsory registration process and set out ethical standards governing algorithmic marketing activities.

Currently, the framework remains at the draft stage and carries no binding legal force. Companies and stakeholders will have occasion to submit feedback during the public consultation period.

Once finalized and put into effect, these regulations would represent Nigeria's inaugural major requirement for firms integrating AI into their marketing endeavors.