As Nigeria embraces smart city initiatives to address rapid urbanization, the integration of Artificial Intelligence (AI) into urban systems raises significant legal and ethical questions. From AI-powered surveillance and traffic management to digital governance and service delivery, the deployment of intelligent technologies must align with constitutional rights, data protection laws, and accountability mechanisms. This chapter critically examines Nigeria’s existing legal framework, including the Nigeria Data Protection Act 2023 and the Cybercrimes Act 2015, in light of emerging AI applications in smart city contexts. It highlights regulatory gaps, human rights concerns, and the risk of algorithmic bias, while drawing lessons from global best practices. The chapter concludes by proposing a legal roadmap for ensuring that AI-driven smart city development in Nigeria is inclusive, rights-based, and sustainableAs Nigeria embraces smart city initiatives to address rapid urbanization, the integration of Artificial Intelligence (AI) into urban systems raises profound legal, ethical, and governance questions that remain largely unaddressed by existing regulatory frameworks. From AI-powered surveillance and intelligent traffic management to digital governance and automated service delivery, the deployment of intelligent technologies in Nigerian cities, including Eko Atlantic’s smart grid, and Abuja’s smart city framework, must align with constitutional rights, data protection obligations, and public accountability mechanisms. Yet Nigeria’s current legal framework is policy-driven and lacks a dedicated AI or smart city regulation. This chapter critically examines Nigeria’s existing legal framework, including the Nigeria Data Protection Act 2023, the Cybercrimes Act 2015, in light of emerging AI applications in urban contexts. It identifies critical regulatory gaps concerning algorithmic transparency, accountability for automated decision-making, data sovereignty risks, and the protection of marginalized populations from surveillance and algorithmic bias. Drawing comparative insights from the European Union’s risk-based AI Act, South Korea’s Smart City Development and Industry Act 2017, and the United Kingdom’s sectoral regulatory approach, the chapter highlights how binding legal frameworks can constrain high-risk AI applications through ex ante impact assessments, human-in-the-loop protocols, and enforceable institutional coordination. It further examines constitutional constraints under Nigeria’s federal structure, regulatory overlap among institutions such as NITDA, NCC, and NDPC, and accountability challenges posed by public-private partnerships with opaque algorithmic contracts. The chapter concludes by proposing a legal roadmap for ensuring that AI-driven smart city development in Nigeria is inclusive, rights-based, and sustainable.