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Senate Advances Digital Economy Bill to Legalize AI, E-Governance

Senate Set to Legalize AI, E-Governance as Digital Economy Bill Scales 2nd Reading

byFranca Wilson
July 8, 2025
in Headlines, National
Nigeria Senate to advance digital economy, AI and e-Governance

…the digital economy bill lays the groundwork for Nigeria’s most comprehensive legal framework for artificial intelligence (AI).

Abuja, Nigeria – The iNews Times reports that the Nigerian Senate on Tuesday took a major step toward digital transformation by passing the National Digital Economy and E-Governance Bill, 2025, through its second reading.

Sponsored by Senator Shuaib Afolabi Salisu (Ogun Central), the bill lays the groundwork for Nigeria’s most comprehensive legal framework for artificial intelligence (AI), secure electronic transactions, and the digitisation of public services.

While presenting the bill on the Senate floor, Senator Salisu described it as “a strategic pillar for 21st-century governance, economic diversification, and national competitiveness.”

Salisu noted that the legislation aims to institutionalize ethical AI adoption, enhance digital literacy, and modernize service delivery across government institutions.

“Mr. President, Distinguished Senators, this Bill holds immense promise for our nation and the future of our workforce. It provides legal clarity for electronic transactions, secure systems, and the ethical governance of emerging technologies such as AI,” Salisu stated.

The proposed legislation seeks to close long-standing policy gaps in Nigeria’s digital ecosystem, addressing outdated regulations, lack of interoperability in public services, and the absence of structured oversight for rapidly evolving technologies.

Key provisions of the Bill include:

• Formal legal recognition for digital contracts, electronic records, and e-signatures

• Mandated ethical and risk-based frameworks for AI technologies

• A national push for digital skills development and digital literacy

• Obligations for government bodies to digitize services using secure, interoperable platforms

Senator Salisu projected that, if passed into law, the bill could significantly grow the digital economy’s contribution to Nigeria’s GDP–from the current 16-18% to up to 22% by 2030.

It could also help the government save an estimated ₦300 billion annually by cutting red tape and administrative inefficiencies, while creating over 1.5 million digital jobs through skill-building programs, innovation hubs, and startup support.

Deputy Senate President Barau Jibrin endorsed the bill during the debate, calling it critical to Nigeria’s economic sustainability.

“The Bill is directly talking about our economic health. Every sound economy in the world is anchored on pragmatic digital service delivery and governance,” he said.

Senate Chief Whip, Senator Mohammed Tahir Monguno (APC, Borno North), also threw his weight behind the bill, particularly for its alignment with global trends in AI and digital technology.

“This Bill is timely, especially considering the fact that the world is going towards the digital age and AI is becoming prominent. It gives legality to AI and the digital economy,” Monguno noted.

Following the robust debate, the bill was passed for second reading in a session presided over by Deputy Senate President Barau Jibrin. It has now been referred to the Senate Committee on ICT and Cybersecurity for further legislative work.

If enacted, stakeholders believe the bill could position Nigeria as a forward-looking digital economy, driving transparency, innovation, and inclusive growth through the strategic deployment of technology.

Franca Wilson

Franca Wilson

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