A corporate entity could experience an administrative penalty of up to N100 million or one per cent of its earlier year’s turnover, whichever is upper, although a natural individual could address a fine of up to N50 million. Earlier in the year, the FCCPC had too exposed broader consumer-protection regulations containing provisions dealing including impartial dealing and marketing standards, advertising substantiation, commercial mold disclosures and protections for vulnerable consumers.
Meanwhile, the proposed Sales Promotion Regulations prescribe important sanctions for violations. Businesses applying AI-driven communications would be expected to grant consumers together with the alternative to opt out, although the employ of automated systems would have to comply using requirements against manipulation, misinformation and exploitation of consumer figures or behavioural tendencies.
The development comes against the backdrop of the quick expansion of AI tools across Nigeria’s organization environment, including marketing, patron solution, digital advertising and web-based transaction. Supplementary penalties of up to N10 million are proposed for specified breaches, including failure to fulfil promised promotional prizes or making wrong statements in applications.
The proposed measures come at a time when Nigeria is already confronting wider questions regarding the responsibilities of international technology companies and AI platforms operating in the country. It could too lift the desire for companies to sustain person oversight of AI-generated commercial material and demonstrate compliance using consumer-protection requirements.
Similarly, the FCCPC has previously acknowledged regulatory and enforcement frameworks under the Federal Competition and Consumer Protection Act, including its Administrative Penalties Regulations, even as its newest recommendation signals an exertion to broaden consumer-protection oversight into emerging automated marketing practices as AI becomes extra embedded in commercial activities.
In July, the FCCPC began an examination into allegations involving Meta, Google, X and definite generative AI platforms, including claims of anti-competitive conduct and unauthorised apply of Nigerian media wording in AI development. The increasing use of automated systems has moreover created regulatory questions over who bears responsibility when technology generates inaccurate claims or influences consumer decisions.
The FCCPC’s travel is component of a wider regulatory conversation approximately the computerized economy, where the boundaries between competition, consumer protection, information governance and AI law are increasingly overlapping. The Commission stressed that the research did not constitute a finding of wrongdoing.
During the time that the AI marketing provisions persist proposals rather than final enforcement rules, their implementation could name for businesses to evaluation how they apply generative AI for advertising, patron engagement, automated recommendations and promotional campaigns. In July, the Federal Ministry of Communications, Innovation and Computerized Economy directed regulators to sustain the regulatory position quo on internet platforms and other cross-cutting digital issues pending the development of a harmonised nationwide policy and governance framework.
The Commission’s proposed rules consequently include another dimension to Nigeria’s emerging technique to AI governance, notably from the consumer-protection method.
The Federal Competition and Consumer Protection Commission (FCCPC) has proposed modern rules that would produce businesses accountable for marketing messages, claims and consumer engagements generated or delivered across artificial intelligence (AI) and other automated technologies.
The proposed provisions are in the prepare Sales Promotion Regulations, 2026, which request to collection requirements for the apply of AI, machine learning, and automated systems in promotions, marketing communications, and consumer engagement directed at Nigerian consumers.
The Commission released the prepare framework on September 30, 2026, and it additionally introduces tougher financial penalties for breaches, together with corporate entities facing fines of up to N100 million or 1% of their preceding year’s turnover, whichever is larger.
Under the proposed framework, businesses deploying AI or automated technologies for marketing purposes would be required to register such employ alongside the FCCPC, although AI-generated or automated promotional replica would have to be plainly identifiable. Businesses would accordingly not be able to rely solely on the detail that a statement, endorsement or promotional decision was generated by an automated mechanism where such output is misleading, discriminatory or otherwise harmful to consumers.
The propose furthermore places emphasis on consumer command over automated marketing. The rules additionally protect emerging tools such as AI chatbots, digital influencers and automated messaging systems.
A significant implication of the offer is that companies would continue responsible for representations and claims produced by the technologies they deploy.
Source: Businesses Face N100m Penalty, As FCCPC Plans AI Marketing Regulation
