Artificial Intelligence (AI) has rapidly become the hallmark of 21st-century technological progress. In just the past two years, the global AI landscape has witnessed exponential growth. Market projections now estimate that the AI sector will skyrocket from $189 billion in 2023 to $4.8 trillion by 2033—a staggering 25-fold leap in a single decade. This unprecedented expansion is largely driven by rapid advances in Generative AI, Large Language Models (LLMs), and Natural Language Processing (NLP).

Game-changing tools like ChatGPT, Google Gemini, and GitHub Copilot have entered mainstream use, transforming not only how individuals interact with technology but also how entire industries operate. Across sectors—healthcare, finance, education, and entertainment—AI is delivering powerful, scalable, and increasingly accessible solutions. The era of AI is no longer a distant prospect; it is actively reshaping the global economy.

Nigeria’s Rising AI Footprint

Amidst this global transformation, Nigeria has emerged as a notable frontrunner in AI adoption. According to recent reports, 70% of Nigeria’s online population actively uses generative AI tools—well above the global average of 48%. More than that, Nigerians express overwhelming optimism about the technology’s potential: 87% believe AI’s benefits outweigh its risks, and 90% expect positive impacts, particularly in medicine and science.

Already, AI-driven innovations are addressing Nigeria’s long-standing challenges across core sectors. In healthcare, AI tools are assisting in diagnostics and medical logistics. In education, personalized learning platforms are bridging gaps in teacher-student ratios. And in finance, digital tools powered by AI are increasing financial inclusion for underbanked communities.

Yet for all this promise, Nigeria still grapples with substantial structural hurdles. A significant shortage of AI talent persists. The country currently produces only around 2,500 AI-related graduates annually, far below what the burgeoning demand requires. This scarcity fuels a brain drain, with many top graduates seeking opportunities abroad. Compounding the problem, most universities face funding shortfalls, outdated curricula, and a lack of qualified professors, making it difficult to train the next generation of AI professionals effectively.

Meanwhile, large corporations remain slow to adopt AI, leaving startups and smaller innovators to spearhead local progress. While this has fostered creativity, it has also created a fragmented innovation landscape with limited scalability.

The Need for Responsible Regulation

“With great power comes great responsibility,” said Ben Parker, and this sentiment resonates profoundly in today’s AI discourse. As AI systems become more capable, their capacity for misuse grows equally fast. Left unchecked, algorithmic bias can reinforce social inequalities. AI-powered systems can also become tools for cybercrime, surveillance, or manipulation via technologies like deepfakes.

AI’s ability to collect and analyze vast amounts of personal data poses serious privacy concerns, potentially undermining individual autonomy and trust. For this reason, countries around the world are racing to implement frameworks that balance innovation with ethics, and opportunity with responsibility.

Global Regulatory Models: Learning from the EU and UK

The European Union (EU) has taken a pioneering step with its AI Act—the world’s first comprehensive AI legal framework. This act classifies AI systems into four categories based on risk:

• Unacceptable (banned outright)

• High-risk (subject to rigorous oversight)

• Limited-risk (requiring transparency)

• Minimal-risk (largely exempt)

High-risk systems must undergo conformity assessments, be registered, and are subject to ongoing audits. Enforcement falls under national authorities and the European AI Office, with steep penalties for non-compliance. Importantly, the Act applies to any AI systems used within the EU—even if developed elsewhere—giving it a global reach.

The United Kingdom, by contrast, has opted for a more flexible, sector-led approach. It lacks a centralized AI law but instead relies on a non-statutory framework grounded in five key principles:

1. Safety, security, and robustness

2. Transparency and explainability

3. Fairness

4. Accountability and governance

5. Contestability and redress

Existing regulators like the Information Commissioner’s Office (ICO) and Financial Conduct Authority (FCA) oversee AI applications in their respective domains. The UK government emphasizes agility and innovation, striving to avoid excessive regulatory burden while ensuring consumer protection.

Both models offer valuable lessons for Nigeria, which now stands at a pivotal crossroads.

The Case for a Nigerian AI Act

Despite having a draft National AI Strategy and several sectoral laws in place, Nigeria lacks a comprehensive regulatory framework for artificial intelligence. To bridge this gap and harness the technology’s full potential, Nigeria must craft its own national AI Act—a framework that reflects local realities while aligning with international best practices.

The foundation of this Act should rest on five key pillars:

1. Research, Development & Security

2. Ethics & Safety

3. Adoption

4. Education

5. Governance

Each of these pillars is essential to creating an AI ecosystem that is both innovative and ethically grounded.

What Should Nigeria’s AI Act Look Like?

A practical Nigerian AI law can begin by adopting the EU’s risk-tiered approach. Ban AI use cases deemed unacceptable, such as social scoring or biometric surveillance in public spaces. For high-risk tools, impose strict auditing, logging, and registration requirements. Meanwhile, allow low-risk systems, like chatbots and productivity assistants, to operate with minimal interference.

From the UK model, Nigeria can borrow the idea of empowering sector-specific regulators—for instance, having the Central Bank of Nigeria (CBN) regulate AI in finance or the Nigerian Communications Commission (NCC) oversee telecom-related AI applications. These watchdogs can respond quickly as AI use cases evolve within their domains.

To preserve human agency, the law should guarantee that any significant algorithmic decision—like a loan denial or medical diagnosis—can be overridden by a human within 48 hours. Enforce this through legal backing and financial penalties to ensure compliance.

Transparency must be a central tenet. AI systems should carry explicit labels, synthetic media should be watermarked, and all critical AI decisions should be logged for at least five years. Public registries should offer plain-English summaries of how systems work, enabling informed public scrutiny.

Fueling Growth Alongside Regulation

Regulation must go hand in hand with economic incentives. Nigeria’s AI law should support regulatory sandboxes under the National Information Technology Development Agency (NITDA), where startups can test solutions in real-world conditions with reduced legal exposure.

Offer micro-grants, tax holidays, and shared computing resources to help early-stage companies move from prototype to market. Public funding should prioritize university-led research, converting Nigerian academia into a launchpad for local AI products that address African problems.

To scale adoption, the government should facilitate public-private partnerships, run AI pilots in agriculture, health, and finance, and subsidize key technologies to reduce entry barriers for small businesses.

Building Capacity Through Education

No AI revolution can succeed without human capacity development. Nigeria must invest in AI literacy at all education levels—starting from primary schools to technical colleges and universities. Simultaneously, structured upskilling programs for the current workforce will ensure employees remain relevant and competitive.

Establishing Strong Oversight and Global Alignment

A future-ready AI regime needs an independent Nigerian AI Authority responsible for:

• Setting technical and ethical standards

• Conducting compliance audits

• Providing recourse for citizens affected by AI systems

Finally, Nigeria should align with international standards, such as those of the OECD and the EU, allowing Nigerian products to scale globally without expensive modifications. Joining international AI dialogues will also give Nigeria a voice in shaping the future of global AI governance.

Conclusion: Nigeria’s Moment to Lead

Nigeria has a rare and significant opportunity to lead Africa in crafting a human-centric, innovation-friendly AI future. By drawing inspiration from the EU’s structured risk-based framework and the UK’s adaptive oversight, Nigeria can design a national AI Act that safeguards rights while unlocking the country’s immense tech potential.

With deliberate investments in research, education, governance, and ethics, Nigeria can ensure its AI journey is not just technologically advanced, but also equitable, secure, and globally competitive. The time to act is now—before Nigeria becomes not just a consumer of AI, but a global contributor to its responsible evolution.