Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has proposed new rules that would place additional requirements on businesses using artificial intelligence and automated systems for sales promotions, marketing communications and consumer engagement.
The proposed Sales Promotion (Amended) Regulations, 2026, published on September 30, 2026, would introduce obligations covering AI-generated marketing content, automated targeting, consumer opt-outs and recordkeeping. A corporate entity could face an administrative penalty of up to ₦100 million or 1% of its previous year’s turnover, whichever is greater, under the draft.
The rules are not yet in force. FCCPC is consulting stakeholders and has set October 20, 2026 as the deadline for public comments.
Businesses using AI for marketing could face registration requirements
The proposed regulations would require businesses that deploy, operate or use AI, machine-learning systems or other automated technologies for sales promotions, marketing communications or consumer-engagement activities directed at Nigerian consumers to register with the FCCPC.
The wording could cover more than advertisements generated by text or image models. Automated promotional campaigns, AI chatbots, targeted offers and other systems used to communicate with or influence consumers could potentially fall within the proposed framework.
The draft also raises requirements around transparency. AI-generated or automated marketing content would have to be clearly identifiable as such, including content involving technologies such as chatbots and virtual influencers.
Businesses would also be expected to provide consumers with an option to opt out of automated or AI-driven marketing communications.
FCCPC proposes accountability for automated marketing decisions
The proposed framework would require companies to take responsibility for the marketing outcomes produced by the AI systems they use. A business would not be able to treat the use of an AI system as a substitute for responsibility where automated communications or promotional claims are misleading or otherwise breach consumer-protection requirements.
The draft also addresses the use of algorithms for promotional offers, pricing and consumer targeting. Such systems would be expected to operate transparently and without discriminatory practices, while the proposed rules would prohibit automated mechanisms designed to manipulate consumer behaviour, exploit consumer vulnerabilities or misrepresent the value of an offer.
FCCPC could also request information about the criteria or logic used by an algorithm when investigating compliance.
Businesses using AI for marketing would further be required to keep records relating to the design and operation of their systems, including information about data sources and decision-making processes. The proposed retention period is at least two years, with records available to the Commission when requested.
AI-generated promotions are not the only systems covered
The draft also contains provisions relating to automated online prize draws. Promoters using software or algorithms to select winners could be required to provide FCCPC with information about the random-selection system, including audit logs or source code.
The proposed penalties extend beyond the headline ₦100 million figure. A natural person could face a penalty of up to ₦50 million, while certain other breaches under the draft could attract penalties of up to ₦10 million.
The corporate penalty is also potentially higher than ₦100 million for larger businesses because the proposed calculation is tied to turnover. For example, 1% of a company with ₦20 billion in previous-year turnover would amount to ₦200 million.
The draft also provides for possible proceedings against company directors, including potential disqualification from serving as a director for up to five years.
