The Federal Competition and Consumer Protection Commission (FCCPC) has unveiled a set of proposed regulations aimed at governing the use of artificial intelligence (AI) in marketing practices across Nigeria. These draft rules, released on September 30, 2026, seek to ensure that businesses are held accountable for misleading claims generated by AI technologies, with penalties reaching up to ₦100 million or 1% of a company's annual turnover, whichever is greater.

Under the proposed Sales Promotion Regulations, 2026, companies utilizing AI for marketing purposes will be required to register their AI tools with the FCCPC. This measure aims to enhance transparency and consumer awareness by mandating that all automated promotional content be clearly labeled. The regulations cover a range of AI applications, including chatbots, virtual influencers, and automated messaging systems, which are increasingly prevalent in advertising and customer engagement.

A significant aspect of the draft regulations is the stipulation that businesses will remain liable for any misleading claims made by their AI systems. This means that companies cannot evade responsibility by attributing false or harmful marketing messages to automated technologies. The FCCPC's approach emphasizes the need for enhanced human oversight in the deployment of AI-generated advertisements and customer communications.

Additionally, the proposed rules prioritize consumer rights by allowing individuals to opt out of automated marketing communications. Businesses will be required to provide clear options for consumers wishing to disengage from AI-driven interactions. The regulations also include provisions to prevent manipulation and misinformation, ensuring that consumer data and behavioral tendencies are not exploited.

The penalties outlined in the draft regulations extend beyond corporate entities. Individuals could face fines of up to ₦50 million for certain violations, while specific breaches, such as failing to deliver promised promotional prizes, could incur penalties of up to ₦10 million. This comprehensive approach reflects the FCCPC's commitment to safeguarding consumer interests in a rapidly evolving digital landscape.

These proposed regulations come amid ongoing discussions regarding the governance of AI in Nigeria, particularly concerning consumer protection and data management. The FCCPC's initiative aligns with broader efforts to establish a cohesive regulatory framework for digital platforms, as highlighted by the Federal Ministry of Communications, Innovation and Digital Economy. In July, the ministry directed regulatory bodies to maintain the current regulatory status until a harmonized national framework is established.

As the use of AI technologies continues to grow in Nigeria's marketing and customer service sectors, the FCCPC's proposed rules could significantly alter how businesses approach automated campaigns. If adopted, companies may need to enhance their disclosure practices and ensure that their AI applications comply with consumer protection standards, reinforcing the importance of human oversight in marketing strategies.