The Federal Government has directed the Advertising Regulatory Council of Nigeria (ARCON) to establish a comprehensive regulatory framework governing the use of Artificial Intelligence (AI) in advertising.
The move is intended to create transparency in the creative industry and prevent the proliferation of misleading content generated by AI tools, which the government fears could deceive consumers if left unchecked.
The directive comes as generative AI tools, including large language models and image generators, become increasingly integrated into the workflows of Nigerian ad agencies and corporate marketing departments to reduce production costs and accelerate campaign delivery.
The government has expressed concern that the ability of AI to create hyper-realistic images and videos, often referred to as deepfakes, could be weaponised to make false claims about products or services, thereby undermining consumer trust in the marketplace.
Under the proposed guidelines, ARCON is expected to define the boundaries between permissible AI assistance and prohibited deceptive practices. This likely includes mandates for the disclosure of AI-generated content, requiring brands to explicitly label advertisements that use synthetic media to represent real-life scenarios or human endorsements.
The Advertising Regulatory Council of Nigeria currently oversees the vetting and approval of all advertisements aired or published within the country to ensure they adhere to the Nigerian Advertising Code.
Regulatory Challenges for Nigerian Ad Agencies
For Nigerian advertising agencies, the introduction of specific AI rules represents a shift in how creative assets are produced and audited. Many firms have already adopted AI for copywriting and visual conceptualisation, but the formalisation of rules will likely introduce new compliance costs and vetting bottlenecks.
Industry stakeholders argue that while regulation is necessary to prevent fraud, overly rigid rules could stifle the adoption of technology that allows local agencies to compete with global firms. The challenge for ARCON will be balancing consumer protection with the need for technological innovation in the creative sector.
This regulatory push aligns with broader national efforts to manage the digital economy. The National Information Technology Development Agency (NITDA) has previously highlighted the need for an ethical framework for AI to ensure that automation does not compromise data privacy or social stability.
The focus on AI in advertising also reflects a global trend. The European Union, for instance, has pioneered the EU AI Act, which classifies AI systems by risk level and mandates strict transparency for synthetic content that could mislead the public.
In Nigeria, the lack of a specific AI law means that regulators must rely on existing statutory powers to manage the technology. By tasking ARCON with these rules, the government is using a sector-specific approach to address the immediate risks of commercial misinformation.
Beyond transparency, the government is also considering the intellectual property implications of AI. The use of AI-generated art often involves training models on existing copyrighted works, which creates a legal grey area for Nigerian creators and artists whose work may be scraped without compensation.
The upcoming guidelines are expected to clarify whether AI-generated content can be copyrighted or if it remains in the public domain, a decision that will have significant financial implications for agencies selling creative intellectual property to brands.
ARCON is expected to engage with industry players, including the Association of Advertising Agencies of Nigeria (AAAN), to refine the rules before they are formally implemented.
The final framework will likely include a set of reporting requirements for agencies to disclose the extent of AI use in high-budget campaigns, with penalties for non-compliance ranging from fines to the forced withdrawal of misleading advertisements from public circulation.
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