The Federal Competition and Consumer Protection Commission (FCCPC), led by its regulatory leadership, in Abuja, Nigeria, on October 5, 2026, proposed a sweeping new framework that could impose penalties of up to N100 million on businesses for the misuse of artificial intelligence in consumer-facing promotions.
The FCCPC N100m AI Misuse Penalty forms part of the draft Sales Promotion Regulations 2026, which aim to strengthen accountability and transparency in how companies deploy artificial intelligence, machine learning and automated systems in marketing and customer engagement.
Also read: Agbara Nla breaks record with N71m preview revenue
Under the proposal, companies would be held directly responsible for all promotional messages generated through AI tools, including chatbots, virtual influencers and automated communication systems.
The draft states that businesses cannot avoid liability by attributing misleading or harmful claims to technology.
The commission noted that firms using such tools may also be required to formally register their AI-driven promotional systems, while clearly disclosing when consumers are interacting with automated platforms rather than human representatives.
The FCCPC N100m AI Misuse Penalty could see corporate offenders fined up to N100 million or one percent of their previous year’s turnover, depending on the scale of the violation.
Individuals involved in breaches could face penalties of up to N50 million, while additional infractions such as failure to deliver promised promotional rewards may attract fines of up to N10 million.
The proposal comes amid broader regulatory discussions around digital governance in Nigeria, particularly following earlier directives by the Federal Ministry of Communications, Innovation and Digital Economy to maintain a regulatory status quo pending a unified national framework.
Industry stakeholders say the draft reflects growing global concern about the risks associated with automated decision-making and AI-generated content, especially in influencing consumer behaviour.
A regulatory source familiar with the framework said the measures are designed to ensure “greater transparency, accountability and consumer protection in an era where automated systems increasingly shape purchasing decisions.”
The rules would also require businesses to provide consumers with opt-out options from automated marketing communications, while implementing safeguards against manipulation, misinformation and the misuse of consumer data.
The FCCPC emphasised that the proposals remain in draft form and are subject to stakeholder input before any final adoption.
However, analysts suggest that if implemented, the framework could significantly reshape how companies design marketing campaigns and deploy AI tools in Nigeria’s rapidly evolving digital economy.
Also read: Agbara Nla breaks record with N71m preview revenue
The development highlights a decisive and potentially transformative shift towards stricter oversight of artificial intelligence in commercial activities, as regulators seek to balance innovation with consumer protection.
