APPRAISAL OF THE ALGORITHMIC GOVERNANCE GAP UNDER THE NIGERIA DATA PROTECTION ACT, 2023 IN THE ERA OF AI-DRIVEN DECISION-MAKING

Abstract

Artificial Intelligence (AI) is transforming Nigeria's digital landscape, driving operational efficiency in sectors such as fintech, healthcare, and telecommunications. These AI systems rely heavily on large-scale processing of personal data to automate decisions, ranging from loan approvals to employment screening. While the Nigeria Data Protection Act (NDPA) 2023 represents a milestone in aligning Nigeria with global privacy standards, the inherent nature of AI—characterized by "black-box" decision-making and the potential to amplify existing social inequalities through biased training data—presents novel challenges. The core issue facing Nigerian data subjects is whether the existing data protection framework can prevent "AI-driven errors" and discriminatory outcomes. Despite the passage of the NDPA 2023, substantial enforcement and policy gaps remain concerning; AI-driven decision-making and algorithmic bias. The NDPA operates primarily as a privacy law rather than specialized AI-regulation Act, leading to several critical deficiencies like algorithmic opacity; unaccountable bias; limitations of human in the loop and enforcement challenges. The research adopted a doctrinal research methodology. It involves a critical analysis of the primary legislation and relevant case law. A comparative analysis is drawn with international frameworks, such as the European Union General Data Protection Regulation 2018, to evaluate the sufficiency of Nigeria's approach. The research found that there is absence of fair metrics; lack of explainable AI Standards; contextual inaccuracy and high risk processing ambiguity. It therefore recommended for legislative review, mandatory bias audit and enhanced transparency. The research concluded that the Nigeria Data Protection Act 2023 is a necessary but insufficient tool for managing the risks associated with AI-driven decision-making.