Legal Perspective on the Use of Artificial Intelligence in Corporate Governance in Nigeria: Potentials and Challenges

From a legal standpoint, this paper critically examines the potential and challenges in deploying Artificial (AI) Intelligence in corporate governance in Nigeria. The examination revealed that leveraging AI in corporate governance could enhance corporate efficiency in Nigeria through improved decision-making, risk management, financial reporting, and stakeholder protection and engagement. However, possible bias and data privacy breaches are significant risks that pose ethical challenges when AI is deployed in corporate governance. Particularly, Nigeria is bisected by several socio-economic challenges, such as a lack of a robust AI framework and insufficient technological expertise to develop and optimize AI systems. Furthermore, Nigeria currently lacks comprehensive national AI legislation, thereby resulting in the absence of a legal basis for the effective deployment of AI in corporate governance and board management. Against this backdrop, this paper proposes an AI-based corporate governance framework, which can be adapted into future legislative reforms to streamline decision-making processes and improve board accountability and stakeholders’ protection in companies. Overall, it argues that AI legislation and policies are vital to the success of efforts to implement AI-based corporate governance in Nigeria.