The Federal Competition and Consumer Protection Commission has begun structured stakeholder engagement sessions. The sessions bring together software founders and digital commerce firms. The agenda is the proposed compliance framework and penalties for automated AI marketing. The commission released the draft Sales Promotion Regulations, 2026 on 30 September. The consultations will shape the final rules.
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 stakeholder sessions are part of the rule-making process.
The draft rules require businesses using AI, machine learning or automated technologies for promotions to register with the commission. AI-generated marketing content must be clearly identifiable. The rules cover AI chatbots, virtual influencers and automated messaging systems. Businesses must allow consumers to opt out of AI-driven marketing. The draft places responsibility for AI-generated content on the businesses deploying it. A company cannot blame an automated system for a misleading promotion.
The penalties are significant. A corporate entity could face a fine of up to ₦100 million or 1% of its previous year’s turnover, whichever is greater. Directors of breaching companies could face disqualification for up to five years. Additional penalties of up to ₦10 million apply for specific breaches.
The engagement sessions allow founders to raise concerns. Small firms worry about compliance costs. Larger platforms want clarity on liability. The commission says it will publish final rules after consultations.
Winners: The FCCPC, which shows consultation. Consumers, who gain transparency. Compliant businesses, which gain a level playing field. Lawyers and compliance consultants, who gain work. Losers: Businesses that rely on undisclosed AI marketing. Small firms facing compliance costs. Directors who face personal liability. AI chatbot operators, who face new rules.
Bottom Line: The FCCPC is consulting before it regulates. That is good practice. AI marketing is growing. The rules must be clear. The penalties must be proportionate. The consultations will determine both.