Such sanction may incorporate disqualification as a manager for a period not exceeding five (5) years,” the FCCPC stated in the outline principle.
The write additionally proposes added penalties of up to N10 million for defined breaches, including failure to award a promised prize or failure to comply using the terms of a promotion.
A someone who makes a untrue statement in an application or undertaking could too encounter a penalty of up to N10 million under the suggestion.
Companies could be liable for AI driven decisions
The proposed framework would place responsibility for AI generated marketing messages and claims on the businesses deploying the technology.
Under the prepare, an undertaking alongside AI generated information or automated promotional systems would be responsible and accountable for representations, messages and claims produced or communicated by those systems.
The rules would moreover impose liability where an AI structure or automated utility produces misleading, discriminatory or harmful promotional outcomes.
This means businesses could not necessarily steer clear of responsibility for a misleading promotion by attributing the duplicate or decision to an automated platform.
AI requirement in Nigeria
The FCCPC’s recommendation comes as the opening endeavor to regulate the use of AI in Nigeria amid quick embrace of the technology across sectors.
- Earlier this year, an AI professional, Founder and Leader Executive Officer of CarbonAI, Debola Ibiyode, warned that Nigeria could undermine the economic latent of AI if it fails to establish solid regulatory guardrails.
- According to Ibiyode, innovation excluding correct safeguards creates risks that could at endure discourage investment and decrease the profitability of AI solutions.
She noted that Nigeria’s growing adoption of AI presents an possibility to unlock modern economic value, but simply if governments, businesses and technology providers activity together to change responsible governance frameworks.
The Federal Competition and Consumer Protection Commission (FCCPC) is proposing fresh rules that would topic businesses applying artificial intelligence, machine learning and automated technologies for marketing to supplementary regulatory requirements in Nigeria.
Under the write Sales Promotion Regulations, 2026, businesses applying AI for sales promotions, marketing communications or consumer engagement directed at or collection to Nigerian consumers would be required to register together with the Commission.
The proposed framework, released on September 30, 2026, furthermore introduces tougher financial penalties for breaches, using corporate entities facing fines of up to N100 million or 1% of their former year’s turnover, whichever is increased.
AI generated copy could summon for transparent disclosure
The write creates a dedicated framework for what it describes as “Artificial Intelligence and Automated Marketing”, reflecting the growing employ of AI tools in advertising, patron engagement and virtual promotions.
- Under the suggestion, businesses that deploy, operate or use AI, machine learning systems or automated technologies for promotions, marketing communications or consumer engagement would have to register the apply including the FCCPC.
- The write continued proposes that AI-generated or automated marketing content must be obviously identifiable as such.
- It additionally particularly addresses emerging marketing tools including AI chatbots, digital influencers and automated messaging systems.
The proposed rules condition that their utilize in marketing must be observable and must not necessitate manipulation, misinformation or exploitation of consumer figures or behavioural tendencies.
Businesses would additionally be required to enable consumers to opt out of automated or AI driven marketing communications.
N100 million fine proposed for corporate breaches
Beyond the AI provisions, the prepare proposes a primary broaden in the financial consequences for businesses that breach the proposed Sales Promotion Regulations.
According to the proposed principle, a natural individual who contravenes the regulations could address a fine of up to N50 million.
For a corporate entity, the proposed penalty is up to N100 million or 1% of the organization’s prior year’s turnover, whichever is elevated.
- “A body corporate, shall be liable to an administrative penalty not exceeding NGN100,000,000.00 (One Hundred Million Naira) or 1% of its turnover in the former year, whichever is upper.
- “Each manager of an undertaking referred to in Regulations 61.2(b) is liable to be proceeded against as specified under Regulations 61.2(a).
Source: FCCPC moves to regulate AI marketing, businesses face N100 million penalty
