NIGERIA Trends and Developments Contributed by: Ituah Imhanze, Daze Nga, Damilola Raji and Ozioma Soludo, KENNA
tral Bank of Nigeria (CBN) in banking or the Nigerian Electricity Regulatory Commission (NERC) in energy, might claim overlapping jurisdiction. Looking ahead, several litigation trends are expected in 2026, including the following. Expansion of regulatory authority disputes Following the Federal High Court’s decision, the FCCPC is expected to extend its reach into finan- cial services, digital markets, energy, manufacturing and other sectors. This expansion is not likely to go unchallenged. Companies and industry associations are likely to test the limits of the FCCPC’s mandate, seeking judicial clarification on whether sector-spe- cific regulators or the FCCPC have the final say in cases of anti-competitive conduct or consumer rights violations. Consumer protection in lending and the digital economy The newly introduced Consumer Lending Regulation is likely to dominate the consumer litigation landscape in the near future. The Regulation mandates respon- sible lending practices, ethical recovery procedures, and empowers the FCCPC to sanction errant lenders. As enforcement begins, Nigerian courts can expect cases from digital lending platforms and microfinance institutions, the crux of which will be to challenge sanctions or question the Commission’s interpreta- tion of their obligations. Borrowers, on the other hand, may rely on the Regulation to bring claims of unfair contract terms and privacy violations arising from aggressive recovery tactics or unauthorised use of borrower data. Beyond lending, the FCCPC is also expected to continue its scrutiny of the digital marketplace. The FCCPC v Meta saga, premised on coercive privacy updates and allegations of unequal treatment of Nige- rian users, highlighted the collision between global tech practices and domestic consumer protection standards. In its wake, more consumers are likely to bring suits against telecoms operators, fintechs, and e-commerce platforms over unauthorised data transfers, excessive data collection, algorithm-driven discrimination, and opaque contract terms. Collective consumer actions are likely to gain traction, and the
courts should begin to see an increase in suits brought on behalf of groups of consumers. Overview The FCCPC’s expanding role, bolstered by the new Lending Regulation and by judicial endorsement of its authority, will continue to test the boundaries of consumer rights and market fairness. For businesses, 2026 will demand a stronger culture of compliance, as litigation is increasingly becoming a primary tool for both regulators and consumers to enforce account- ability and resolve disputes. The Rise of AI and Generative AI in Litigation Artificial intelligence has evolved from a theoretical concept to a practical reality for Nigerians in almost every sphere, including the legal sector. By 2026, the adoption of AI in litigation is expected to be more evident in three key areas: drafting, automation and research. Drafting Generative tools are beginning to play a role in prepar- ing pleadings, motions, and other court documents. For example, Nigeria’s LawPavilionGPT advertises the ability to generate a statement of claim, defence, and issues for determination using domestic laws and precedents. Other, more global platforms, such as Harvey AI and CoCounsel Legal, are also used by firms abroad to assist in drafting and conducting legal analysis. The practical value is already apparent in routine tasks such as inserting boilerplate clauses and generating skeletons of pleadings for further editing. Because many law firms still rely on manual drafting, these tools are not yet as widespread in Nigeria as they are in other, more developed regions. Still, adoption is grow- ing, as practitioners become more aware of the utility of such tools. A growing number of lawyers, firms and even the courts are likely to utilise these tools more extensively in 2026, not necessarily to replace human work, but to augment it. The challenge will lie in preserving preci- sion and ensuring the necessary human oversight in litigation.
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