The Federal Competition and Consumer Protection Commission (FCCPC) is proposing new rules that would impose additional requirements on businesses using artificial intelligence (AI), machine learning and automated technologies for marketing and consumer engagement in Nigeria.
Under the draft Sales Promotion Regulations, 2026, businesses that use AI for sales promotions, marketing communications or consumer engagement targeted at or accessible to Nigerian consumers would be required to register such use with the FCCPC.
The proposed regulations, released on September 30, 2026, also prescribe tougher financial penalties for violations, with corporate entities liable to a fine of up to N100 million or one per cent of their previous year’s turnover, whichever is greater.
The draft regulations introduce a dedicated framework for “Artificial Intelligence and Automated Marketing”, reflecting the growing use of AI in advertising, digital promotions and customer engagement.
Under the proposed rules, businesses that deploy, operate or use AI, machine learning systems or automated technologies for marketing and consumer engagement would have to register their use with the FCCPC.
AI-generated or automated marketing content would also have to be clearly identified as such.
The proposal specifically covers emerging marketing tools, including AI chatbots, virtual influencers and automated messaging systems.
The FCCPC said the use of such technologies in marketing must be transparent and must not involve manipulation, misinformation, or the exploitation of consumer data and behavioural tendencies.
Businesses would also be required to provide consumers with an option to opt out of automated or AI-driven marketing communications.
Beyond the AI-specific provisions, the draft regulations propose significantly higher financial penalties for breaches of the Sales Promotion Regulations.
A natural person who contravenes the proposed regulations could face a fine of up to N50 million.
For corporate entities, the proposed penalty is N100 million or one per cent of the company’s previous year’s turnover, whichever is greater.
The draft states that directors of affected companies could also face sanctions, including possible disqualification as directors for up to five years.
Additional penalties of up to N10 million are proposed for specific breaches, including failure to award a promised prize or failure to comply with the terms of a promotion.
A person who makes a false statement in an application or undertaking could also face a penalty of up to N10 million.
The proposed framework would place responsibility for AI-generated marketing messages, representations and claims on the businesses deploying the technology.
Under the draft rules, an undertaking using AI-generated content or automated promotional systems would remain accountable for the messages and claims produced or communicated by those systems.
Businesses could also be held responsible where automated systems generate misleading, discriminatory or harmful promotional outcomes.
In effect, companies would not be able to avoid responsibility for a misleading marketing communication simply by attributing it to an AI system or other automated technology.
