FCCPC Moves to Regulate AI Marketing, Proposes N100 Million Penalty
By Aboki Forex —
The Federal Competition and Consumer Protection Commission (FCCPC) has proposed new rules that would require businesses using artificial intelligence, machine learning and automated technologies for marketing in Nigeria to register with the commission. The draft Sales Promotion Regulations, 2026, released on September 30, 2026, also proposes penalties of up to N100 million or 1% of a company’s previous year turnover, whichever is greater.
The FCCPC’s proposal comes as the first attempt to regulate the use of AI in Nigeria amid rapid adoption of the technology across sectors. It creates a dedicated framework called “Artificial Intelligence and Automated Marketing”.
Registration and disclosure rules
Under the draft, businesses that deploy, operate or use AI, machine learning systems or automated technologies for sales promotions, marketing communications or consumer engagement directed at or accessible to Nigerian consumers would have to register the use with the FCCPC.
AI-generated or automated marketing content must be clearly identifiable as such. The rules specifically mention AI chatbots, virtual influencers and automated messaging systems. Their use in marketing must be transparent and must not involve manipulation, misinformation or exploitation of consumer data or behavioural tendencies.
Businesses would also be required to let consumers opt out of automated or AI-driven marketing communications.
Penalties for breaches
The draft proposes tougher financial consequences for breaches. A natural person who contravenes the regulations could face a fine of up to N50 million. For a corporate entity, the proposed penalty is up to N100 million or 1% of the company’s previous year turnover, whichever is greater.
“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 previous year, whichever is greater. “Each director of an undertaking referred to in Regulations 61.2(b) is liable to be proceeded against as specified under Regulations 61.2(a). Such sanction may include disqualification as a director for a period not exceeding five (5) years,” the FCCPC stated in the draft regulation.
The draft also proposes additional penalties of up to N10 million 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.
Business liability for AI decisions
The framework would place responsibility for AI-generated marketing messages and claims on the businesses deploying the technology. An undertaking using AI-generated content or automated promotional systems would be responsible and accountable for representations, messages and claims produced or communicated by those systems.
The rules would also impose liability where an AI system or automated tool produces misleading, discriminatory or harmful promotional outcomes. Businesses could not necessarily avoid responsibility for a misleading promotion by attributing the content or decision to an automated system.
Earlier this year, Debola Ibiyode, founder and chief executive officer of CarbonAI, warned that Nigeria could undermine the economic potential of AI if it fails to establish strong regulatory guardrails. She said innovation without appropriate safeguards creates risks that could discourage investment and reduce the profitability of AI solutions. She noted that Nigeria’s growing adoption of AI presents an opportunity to unlock new economic value, but only if governments, businesses and technology providers work together to develop responsible governance frameworks.
The proposal could raise compliance costs for Nigerian businesses that rely on AI for customer engagement and promotions. It also signals tighter scrutiny of automated marketing claims, with direct consequences for firms that fail to disclose AI use or allow consumers to opt out.