Nigeria could miss out on the economic benefits of artificial intelligence if it fails to establish effective regulatory frameworks that promote trust and responsible innovation, CarbonAI Founder and Chief Executive Officer Debola Ibiyode has warned.
Speaking at the AI Summit 2026 in Lagos, Ibiyode said AI regulation should be viewed as an enabler of sustainable innovation rather than a barrier to technological progress. She argued that responsible governance is essential for attracting investment and ensuring long-term profitability in the AI sector.
“Innovation without regulation is a risk, and regulation in itself without innovation is stagnation. We should apply AI for economic growth. However, at some point, without regulation, economic growth will not happen because there will not be profitability,” she said.
Ibiyode explained that businesses adopting AI increasingly require assurances on data protection, transparency, and accountability before deploying AI systems. According to her, corporate clients want clear explanations of how AI models generate decisions and the regulatory protections available to users.
“There is a critical trust element right now, and only regulation can deliver that peace of mind. Corporations want to know the traceability of the model and demand that we explain how the AI arrived at its answers,” she added.
She also called for what she described as “AI Diplomacy,” a framework that would help countries and organisations maintain control over their AI systems and the data used to develop them. Ibiyode said such an approach would strengthen data sovereignty while supporting innovation.
As AI adoption accelerates across Nigeria, policymakers are expected to continue developing regulatory frameworks that encourage innovation while addressing concerns around transparency, privacy, and the responsible use of AI technologies.
