The Federal Competition and Consumer Protection Commission (FCCPC) is proposing new rules for businesses that use artificial intelligence for marketing. The draft Sales Promotion Regulations, 2026 were released on 30 September. They would require companies using AI, machine learning or automated technologies for promotions to register with the commission.
Nigeria has no dedicated AI regulation. The Nigeria Data Protection Act covers personal data. The FCCPC regulates competition and consumer protection. AI marketing falls between the two. In 2026, an AI expert warned that weak guardrails could undermine the technology’s economic potential. The FCCPC’s proposal is the first attempt to regulate AI use in Nigerian commerce.
The draft creates a framework for what it calls “Artificial Intelligence and Automated Marketing.” Businesses that deploy AI for promotions, marketing communications or consumer engagement directed at Nigerian consumers must register the use with the FCCPC. AI-generated or automated marketing content must be clearly identifiable as such. The rules specifically address AI chatbots, virtual influencers and automated messaging systems. Their use must be transparent. It must not involve manipulation, misinformation or exploitation of consumer data. Businesses must allow consumers to opt out of AI-driven marketing.
The penalties are significant. A natural person who contravenes the regulations could face a fine of up to ₦50 million. A corporate entity could face up to ₦100 million or 1% of its previous year’s turnover, whichever is greater. Each director of a breaching company could be proceeded against. Sanctions may include disqualification as a director for up to five years. Additional penalties of up to ₦10 million apply for specific breaches, including failure to award a promised prize or failure to comply with promotion terms. A person who makes a false statement in an application could also face up to ₦10 million.
The draft places responsibility for AI-generated marketing on the businesses deploying it. A company cannot avoid liability for a misleading promotion by blaming an automated system. The rules impose liability where AI produces misleading, discriminatory or harmful promotional outcomes.
Winners: Consumers, who gain transparency and opt-out rights. The FCCPC, which expands its mandate. Compliant businesses, which gain a level playing field. Lawyers and compliance consultants, who gain work. Losers: Businesses that rely on undisclosed AI marketing. Companies that cannot afford registration. Directors who face personal liability. AI chatbot operators, who face new rules. Firms that use deceptive automated messaging.
Bottom Line: Nigeria is moving to regulate AI marketing. The FCCPC wants registration, disclosure and opt-outs. The fines are heavy. Directors face personal liability. The draft is a start. It must be enforced. AI marketing is growing. The rules must keep pace.