Nigeria’s AI Adoption Outpaces Governance as NCC Survey Raises Consumer Protection Concerns

 
By Simpson Global Media News Desk

Introduction

Nigeria’s telecommunications sector is embracing artificial intelligence (AI) faster than some operators are developing the governance structures needed to manage it responsibly, according to findings presented by the Nigerian Communications Commission (NCC) at an internet governance symposium in Lagos.

The survey found that 73 per cent of surveyed organisations in the communications ecosystem were already using or piloting AI in their operations, while 27 per cent reported having no governance arrangements for the technology. The findings highlight a growing challenge for regulators and service providers as AI becomes increasingly integrated into digital services, customer interactions and business processes. (BusinessDay, October 15, 2026)

The results were presented during the NCC’s inaugural Internet Governance Symposium, held in Lagos on Thursday, October 15. The event brought together representatives of the communications industry and other stakeholders to discuss the rules, safeguards and cooperation needed to support a safer and more accountable digital environment.

The commission said emerging internet governance concerns include AI accountability, online fraud, privacy, cybersecurity, harmful content and the protection of children and other vulnerable internet users. These issues are becoming more pressing as technology changes how Nigerians communicate, learn, work and access services. (NCC official statement)

The findings do not establish that every telecommunications company in Nigeria lacks adequate AI safeguards. Instead, they reveal a gap among the organisations surveyed and underline the need for clearer standards, wider engagement and consistent implementation.

For consumers, the central question is whether innovation can proceed without weakening privacy, transparency, security and accountability. For operators, it is how to use AI to improve services while demonstrating that automated systems are appropriately supervised.

What the NCC survey found

According to a report by BusinessDay, the NCC survey covered 47 organisations drawn from industry, academia, research institutions and civil society. Participants included mobile network operators, internet service providers and representatives of the technical community.

The survey found that 73 per cent of surveyed licensees were using or piloting AI in live operations. Another 27 per cent said they had no governance arrangements for their AI systems. (BusinessDay)

The figures point to a potential mismatch between the speed of adoption and the development of internal rules governing how AI systems should be deployed, monitored and assessed.

AI can be used for many purposes in telecommunications, including customer support, network monitoring, fraud detection, data analysis and the automation of routine tasks. However, the survey figures alone do not identify which individual operators use particular systems or whether specific AI deployments have caused consumer harm.

That distinction matters. The use of AI is not inherently evidence of misconduct, just as the absence of a formal governance arrangement does not, on its own, establish that a particular system has harmed users. The concern is that inadequate oversight can make it harder to identify errors, investigate complaints and determine who is responsible when an automated system produces an unacceptable outcome.

The commission’s discussions therefore focused on a wider governance challenge: ensuring that technological deployment is accompanied by policies, accountability mechanisms and practical safeguards.

Why AI governance matters in telecommunications

Telecommunications providers occupy an important position in Nigeria’s digital economy. Their networks connect people to messaging services, financial platforms, online marketplaces, educational resources, news organisations and government services.

As operators introduce AI into their activities, the technology may influence how customer requests are handled, how suspicious activity is flagged, how network faults are detected and how companies allocate resources.

Such applications can improve speed and efficiency. Automated systems may help service providers identify unusual patterns, prioritise technical faults and respond to common customer enquiries without requiring every task to be completed manually.

However, the consequences of an error can also extend beyond inconvenience. An automated system that incorrectly flags a transaction or misclassifies a customer request may create delays or require human intervention. A poorly controlled system could also expose confidential information or make decisions that users find difficult to challenge.

These are possible risks associated with automated services, not findings that the NCC survey established had occurred at specific Nigerian operators.

Effective governance provides a framework for identifying such risks before and after deployment. It can define who approves an AI system, which information it may process, how its performance is tested, when a human must intervene and how complaints are investigated.

The NCC’s intervention reflects the principle that technological progress should be accompanied by clear responsibility. The commission has stressed that internet governance decisions affect opportunity, trust, security and the rights of internet users. (NCC official statement)

The new Internet Governance Working Group

Following the symposium, the NCC announced the launch of an Internet Governance Working Group intended to strengthen stakeholder participation and address gaps in compliance and implementation.

The initiative is designed to bring relevant participants into continuing discussions about online safety, emerging technologies and the responsibilities of organisations operating within Nigeria’s communications ecosystem.

The commission’s position is that these issues cannot be addressed by a single institution acting alone. Regulators, telecommunications companies, internet service providers, academic institutions, technical specialists and civil society groups each have different responsibilities and practical knowledge that can contribute to policy development.

The Guardian reported on October 17 that the working group was established after the NCC presented findings on internet governance and compliance with the Internet Code of Practice 2026. The report also highlighted the need for clearer implementation guidelines, reporting templates and practical guidance for licensees. (The Guardian, October 17, 2026)

The establishment of a working group creates a platform for consultation, but its effectiveness will depend on what follows. Regular meetings alone will not resolve compliance problems unless they lead to practical guidance, clear responsibilities and measurable progress.

Operators will need to understand what the relevant rules require of them, how compliance will be assessed and what records they should maintain. The regulator, in turn, will need mechanisms for reviewing implementation and addressing persistent gaps.

For consumers, the value of the initiative will ultimately depend on whether it contributes to safer services, better information, more reliable complaint-handling processes and meaningful accountability.

Compliance concerns under the Internet Code of Practice 2026

The NCC’s findings also raised concerns about the readiness of some licensees to implement the Internet Code of Practice 2026.

According to The Guardian’s account of the symposium, only two of 19 licensees assessed were fully ready to implement the code. The report said cybersecurity obligations and provisions relating to AI were among the requirements that licensees found difficult to meet. (The Guardian)

The figure refers to the readiness assessment of 19 licensees, rather than all 47 organisations involved in the broader survey. The two groups should not be treated as interchangeable, and the results should not be interpreted as a complete measurement of every telecommunications provider operating in Nigeria.

Nevertheless, the finding points to a practical implementation problem. Regulations can establish expectations, but organisations must also develop the procedures, technical capabilities and staff expertise required to meet them.

A company may understand that it has responsibilities concerning online safety or AI but still need additional guidance on documentation, reporting, risk assessment and oversight.

For that reason, the NCC’s emphasis on implementation guidance is significant. Clear instructions can help organisations translate general regulatory requirements into day-to-day operating procedures.

The next test will be whether the working group helps clarify these obligations and whether the resulting guidance is followed consistently across the sector.

Consumer awareness and transparency

Another important issue raised during the discussions was whether consumers should be informed when they interact with AI-powered services.

BusinessDay reported that the survey found broad support among respondents for informing consumers when they are interacting with AI. The report said 94 per cent supported such disclosure. (BusinessDay)

Transparency can help customers understand whether they are dealing with an automated assistant or a human representative. That information may be particularly important when a conversation involves a complaint, a disputed charge, a sensitive personal matter or a request requiring judgement.

Disclosure alone, however, does not guarantee good service. An organisation may clearly identify an automated system and still provide inadequate answers or make it difficult for a customer to reach a human agent.

Effective transparency should therefore be accompanied by accessible escalation procedures. Customers need to know how to challenge an answer, request human assistance or report a problem when an automated service fails to resolve an issue.

The survey also indicated differences in views about the timing of regulatory reporting and notification. BusinessDay reported that 40 per cent of respondents preferred periodic reporting to notification before deployment. (BusinessDay)

The distinction reflects a broader policy question: should oversight focus primarily on reporting after a system is introduced, or should certain deployments require advance notification or review?

Periodic reporting may give regulators information about how systems perform over time. Advance notification may provide an opportunity to identify risks before a system is widely deployed. The appropriate approach may depend on the purpose, scale and potential consequences of the technology involved.

The survey figures describe respondents’ views; they do not, by themselves, establish a final NCC rule on AI disclosure or pre-deployment notification.

Privacy and the handling of personal information

AI systems can rely on large amounts of information to identify patterns, generate responses or support automated decisions. Depending on the application, that information may include customer records, service usage data, communication histories or other personal details.

This creates a need for careful data management. Organisations must understand what information their systems process, why it is required, who can access it and how it is protected.

Privacy concerns can arise when information is collected without an adequate basis, retained longer than necessary, shared inappropriately or used for purposes that customers do not reasonably expect. AI systems may also create challenges when information is transferred to external service providers or processed through complex technology supply chains.

These are general risks that organisations should assess; the NCC survey did not establish that each of these problems had occurred among the surveyed companies.

A responsible approach would involve documenting data flows, limiting access to authorised personnel, reviewing third-party arrangements and ensuring that security controls match the sensitivity of the information being processed.

Companies should also be able to explain how they handle complaints involving personal information and how they investigate suspected misuse.

The NCC has identified data protection and cross-border data flows among the priorities for internet governance discussions in 2026 and 2027. (The Guardian)

As AI adoption expands, the regulator and relevant data-protection authorities will need to ensure that organisations understand how existing privacy obligations apply to emerging technologies.

Cybersecurity and the risk of automated abuse

Cybersecurity was another major concern highlighted during the NCC’s symposium.

Digital services face threats ranging from account compromise and identity theft to fraudulent messages, malicious software and attacks on network infrastructure. AI may help security teams detect suspicious activity more quickly, but automated tools also need appropriate controls and testing.

For example, a monitoring system may identify unusual behaviour and alert a security team. If its rules are poorly configured, however, it could produce excessive false alarms or fail to recognise a new type of threat. Human expertise remains important when interpreting alerts, investigating incidents and deciding on appropriate responses.

AI can also be used by malicious actors to generate convincing messages, automate some forms of social engineering or produce misleading material at scale. These possibilities make it important for service providers to review both the benefits and the security implications of their deployments.

The NCC’s Cyber Resilience Framework for the Nigeria Communication Sector was also referenced in the discussions as part of the broader effort to strengthen security and resilience across the infrastructure supporting digital services. (The Guardian)

Resilience requires more than purchasing security software. It involves preparing for incidents, protecting access to systems, maintaining reliable backups where appropriate, training staff, testing response procedures and learning from failures.

For telecommunications companies, a cyber incident can affect not only their own operations but also the customers and businesses that depend on their networks. Clear responsibilities and effective coordination are therefore essential.

Protecting children and vulnerable internet users

Online safety and child protection were also identified as important priorities at the symposium.

Children and other vulnerable users may face risks involving harmful content, online manipulation, scams, privacy violations and inappropriate contact. The spread of automated content tools creates additional challenges for identifying misleading or harmful material and responding to complaints.

The NCC has called for stronger cooperation among stakeholders on these issues, alongside concerns about fraud, privacy and accountability. (NCC official statement)

Protective measures must be designed carefully. Systems intended to identify harmful content can make mistakes, including removing legitimate material or failing to detect dangerous material. Clear reporting processes, proportionate enforcement and opportunities to challenge incorrect decisions can help address these problems.

Parents, educators, service providers, technology companies and regulators also have different roles in online safety. No single technical filter can replace digital literacy, clear safeguarding procedures and responsible platform practices.

For service providers, practical steps may include accessible reporting tools, appropriate privacy settings, clear explanations of safety features and procedures for responding to credible reports of harm.

The NCC’s working group could provide a forum for discussing how such measures should be implemented and how responsibilities should be coordinated across different parts of the digital ecosystem.

Why the findings matter for Nigeria’s digital economy

Nigeria’s digital economy relies on communications infrastructure that enables businesses and individuals to connect to services, exchange information and participate in online markets.

AI may help improve network operations, support customer service and provide new tools for businesses. But the benefits will be harder to sustain if customers lose confidence in the systems handling their information and requests.

Trust is especially important when people depend on digital platforms for essential activities. Consumers need confidence that their information is protected, that automated decisions can be challenged and that organisations will investigate complaints.

For companies, sound governance can also support better risk management. Documented procedures may help identify weaknesses early, clarify responsibilities and reduce uncertainty about how systems should be used.

The NCC’s intervention comes as policymakers continue to discuss the infrastructure needed to expand digital access. In an October 18 report, Channels Television noted that a World Bank Group programme announced earlier in the week aimed to mobilise up to $5.79 billion in private financing for Nigeria, including initiatives relating to digital infrastructure. The programme’s headline figure represents financing mobilisation targets and arrangements, not money already disbursed in full. (Channels Television, October 18, 2026)

Infrastructure investment and responsible AI governance address different challenges, but both affect the long-term development of digital services. More connectivity can bring more people online; reliable oversight helps ensure that the services they encounter are secure, transparent and accountable.

The challenge for Nigeria is to pursue these objectives together rather than treating innovation and governance as competing priorities.

What telecom operators can do next

The survey results suggest several practical areas in which organisations can strengthen their readiness.

First, companies should establish clear internal responsibility for AI systems. Staff should know who approves a deployment, who monitors its performance and who is responsible for responding when it fails.

Second, operators should maintain an inventory of the AI tools they use or test. Such records can help organisations understand where automated systems operate, what information they process and which business functions depend on them.

Third, companies should assess risks before deploying systems and continue monitoring them after launch. Testing should examine accuracy, reliability, security and the possibility of unintended consequences.

Fourth, customer-facing organisations should provide clear information about automated interactions and make it possible for users to seek human assistance when necessary. Complaints should be recorded, reviewed and used to identify recurring problems.

Fifth, organisations should review how third-party technology providers handle information and support incident response. Outsourcing a service does not remove the need to understand the risks associated with its use.

Finally, operators should train relevant staff. Governance policies are unlikely to work if employees do not understand them or lack the authority and resources to follow them.

These measures are practical governance recommendations, rather than a claim that the NCC has already mandated every item in this form. The commission’s guidance and the applicable legal requirements will determine the formal obligations of each organisation.

The role of the regulator

The NCC faces the task of translating broad governance objectives into requirements that operators can understand and regulators can assess.

Clear guidance can help companies identify the records they should maintain, the risks they must consider and the circumstances in which additional oversight may be necessary.

Regulatory consistency will also matter. If expectations are unclear or applied unevenly, companies may struggle to determine whether their systems meet the required standard.

The working group offers a mechanism for gathering feedback from the organisations affected by new rules. However, consultation should support—not replace—clear decisions and effective enforcement where required.

The commission will also need to distinguish between different types of AI use. A low-risk administrative tool may not present the same concerns as a system that influences access to important services or processes sensitive personal information.

A proportionate approach can help focus scrutiny where the potential consequences are greatest while allowing useful innovation to continue.

The NCC’s own statement emphasised that internet governance decisions affect users’ rights, trust, security and opportunity. (NCC official statement) The practical challenge will be ensuring that these principles are reflected in implementation, not only in policy discussions.

Skills, awareness and institutional capacity

The survey also points to the importance of developing the skills required to govern emerging technology.

AI governance involves more than technical knowledge. It can require expertise in cybersecurity, data protection, consumer rights, risk assessment, legal compliance and organisational management.

Some companies may need to build these capabilities internally, while others may require specialist support or additional training for existing employees.

Regulators also need staff who can understand how AI systems operate, evaluate technical documentation and assess whether an organisation’s controls are adequate.

Universities, professional bodies and industry groups can contribute by developing relevant courses, practical workshops and research partnerships. Such initiatives can help close the gap between the adoption of new tools and the ability to manage them responsibly.

The survey included organisations from academia, research institutions and civil society, offering a potential foundation for wider collaboration. BusinessDay reported that 46 of the 47 participating organisations expressed willingness to take part in future consultations and workshops. (BusinessDay)

That willingness provides an opportunity to maintain engagement beyond the symposium. Its value will depend on whether participants contribute to concrete improvements and whether the resulting recommendations are followed through.

Measuring whether progress is being made

A central question after the launch of the working group is how progress will be measured.

Possible indicators include the number of organisations that establish formal AI governance procedures, the availability of clear implementation guidance, improvements in compliance assessments and the quality of customer complaint-handling processes.

Other measures could examine whether operators disclose automated interactions appropriately, whether incident response arrangements are tested and whether staff receive relevant training.

Any public reporting should explain what is being measured, which organisations are included and how the results are calculated. This is particularly important because the initial survey involved different groups of respondents and separate readiness assessments.

Clear measurement can help distinguish between policies that exist on paper and controls that work in practice. It can also allow regulators and industry participants to identify where additional support or enforcement may be needed.

The NCC has not, in the sources cited here, published a complete timetable for every future action the working group may take. Specific deadlines, new obligations or enforcement measures should therefore not be assumed until they are formally announced.

For now, the immediate priorities are clearer guidance, stakeholder cooperation and stronger attention to compliance with the applicable code.

What consumers should watch for

For Nigerians using telecommunications and online services, the policy debate has practical implications.

Customers should be able to understand when they are interacting with automated systems, know how to request human support and find clear channels for raising complaints.

They should also expect companies to explain their privacy practices in accessible language and provide appropriate information about how personal data is handled.

When a digital service produces an unexpected result, users should keep relevant records, such as reference numbers or complaint confirmations, and contact the service provider through its official channels. Sensitive information should not be shared with unverified accounts claiming to offer technical support.

These precautions do not transfer responsibility from providers to consumers. Companies remain responsible for managing their services appropriately, while regulators must provide oversight consistent with their legal mandates.

Public awareness can nevertheless help people recognise suspicious activity and understand their options when something goes wrong.

The NCC’s focus on online fraud, privacy, AI accountability and child protection reflects the broad range of issues that can affect the everyday use of digital services. (NCC official statement)

The road ahead

Nigeria’s communications sector is at a point where AI is becoming part of operational activity while the governance arrangements around it continue to develop.

The NCC survey offers a snapshot of that transition. It found widespread AI use or testing among the organisations surveyed, alongside a reported absence of governance arrangements among a significant minority. A separate readiness assessment also raised concerns about the ability of some licensees to implement the Internet Code of Practice 2026. (BusinessDay; The Guardian)

Those findings should be treated as a warning about implementation gaps, not as proof that all AI systems in Nigeria’s telecom sector are unsafe. They show why organisations need to pair innovation with appropriate oversight and why regulators need reliable ways to assess compliance.

The new Internet Governance Working Group creates an opportunity for government, industry, academia and civil society to work through the practical questions. Its impact will depend on the quality of the guidance it helps develop, the commitment of participating organisations and the consistency of follow-through.

For operators, the priority is to establish meaningful governance rather than treating it as a paperwork exercise. For the regulator, it is to make expectations clear and ensure that compliance can be assessed. For consumers, it is to have services that are transparent, secure and responsive when problems arise.

Nigeria’s ability to benefit from AI will depend not only on how quickly businesses adopt it, but also on whether they can demonstrate that it is being used responsibly.

The next phase will be measured not by the number of organisations experimenting with AI, but by whether stronger governance translates into safer services, clearer accountability and greater public confidence.

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