Governing the Ungoverned: A Framework for Responsible AI Deployment in Nigeria’s Informal Economy

Chukwuma Okpaka · International Journal Of Recent Trends In Multidisciplinary Research · 14 Jun 2026

Where this sits in the debate

Should governments act on AI now? · its finding supports the claim (why studies differ)

Direction of the finding as read from the abstract by an AI model (AI-written).

Key takeaway AI-written

Drawing on 60 interviews and a survey of 800 people in four Nigerian states, the study maps AI deployment in Nigeria's informal economy and finds a three-part governance gap in risk classification, workers' ability to contest decisions, and regulatory capacity. Seventy-one percent of surveyed informal workers reported at least one form of AI-mediated harm, most often credit exclusion.

The paper in three steps AI-written

Written by an AI agent from the paper's abstract, which is the primary source and is quoted below.

The question

How is AI being deployed in Nigeria's informal economy, what harms do informal workers report, and what governance model fits low-formality settings?

The approach

Mixed methods: 60 semi-structured interviews with AI-deploying fintechs, regulators and informal workers, plus a survey of 800 people across four Nigerian states. A proposed governance framework was validated with a Delphi panel of 25 experts.

The findings

The study describes a three-part governance gap: no risk classification or auditing, workers unable to contest algorithmic decisions, and regulators lacking capacity and mandate. 71% of surveyed informal workers reported at least one AI-mediated harm, most often credit exclusion (43%). It proposes a four-layer co-regulatory framework.

How to read it: survey. Self-reported data from firms or individuals — good for perceptions and adoption; answers can differ from behavior.

Limitations and counterpoints AI-written

Harms are self-reported in a survey covering four states, so prevalence may not generalise nationally. The framework is validated by expert consensus rather than tested in practice.

Abstract

The deployment of artificial intelligence (AI) in Nigeria's informal economy is accelerating without adequate governance frameworks to mediate its risks. This paper investigates the intersection of AI deployment and informality in Nigeria, a country where the informal sector accounts for approximately 58% of GDP and over 93% of employment. Drawing on a mixed-methods study comprising semi-structured interviews (n=60) with AI-deploying fintechs, regulators, and informal workers, and a structured survey (n=800) across four Nigerian states, the study maps AI deployment patterns, documents algorithmic harms, and critically analyses the adequacy of existing national and continental governance frameworks. Findings reveal a three-dimensional governance gap: AI systems operate without risk classification or algorithmic auditing; informal workers lack legal standing or digital literacy to contest algorithmic decisions; and regulators lack both technical capacity and jurisdictional mandate to oversee informal sector AI deployment. Seventy-one percent of surveyed informal workers reported experiencing at least one form of AI-mediated harm, including credit exclusion (43%), non-transparent algorithmic decisions (38%), and data extraction without meaningful consent (29%). In response, the paper proposes the Informal Economy AI Governance (IEAIG) Framework — a four-layer co-regulatory model comprising community accountability, platform-level obligations, state co-regulation, and continental interoperability — validated through a Delphi panel of 25 experts. The framework offers the first governance model specifically designed for low-formality, data-sparse environments in Sub-Saharan Africa and contributes original theoretical and policy tools to the responsible AI literature.

About this publication

Academic journal. Published in an academic journal — typically peer-reviewed before publication, though indexing alone doesn't guarantee review depth.

Published: 2026 (4 months ago)
Citations: 0 (OpenAlex)

0 citations recorded by OpenAlex — too few 2026 papers in this collection for a fair comparison.

Cited elsewhere in this guide

State of the debate: Should governments act on AI now?