Nigerian companies are setting a global benchmark in balancing artificial intelligence (AI) adoption with strong privacy protection, according to a new report commissioned by global technology firm, Zoho.
The study, titled “The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption” and conducted by Arion Research, highlights how local businesses are embedding AI responsibly while maintaining robust governance standards. The findings were unveiled during Zoholics Nigeria 2025, Zoho’s annual user conference held in Lagos.
Zoho also announced a 75% customer growth in Nigeria in 2024, underscoring the country’s importance as one of its fastest-growing markets in Africa. “Nigerian businesses are leading the way in responsible AI adoption, tempering innovation with privacy safeguards. This mirrors our philosophy of building contextual, privacy-first AI models that drive tangible business benefits,” said Kehinde Ogundare, Country Head, Zoho Nigeria.
Nigerian businesses balancing innovation with privacy
The survey, which gathered responses from 386 Nigerian organisations, found that 93% have already begun their AI journey, with 31% achieving advanced integration and 26.5% implementing AI across multiple departments. More than half of the businesses surveyed have moved beyond experimentation to full operational deployment.
Importantly, 84% of organisations reported strengthening privacy measures since adopting AI, with two-thirds describing the improvements as significant. Executive leadership is driving much of this momentum—over half of respondents were CEOs or senior executives, ensuring AI adoption is backed by strategic decision-making.
The report also shows that 94% of Nigerian organisations now have a dedicated privacy officer or team, well above global averages. Additionally, 40% of organisations allocate over 30% of their IT budgets to privacy protection, signalling that strong governance is increasingly viewed as a competitive advantage rather than a barrier.
Financial sector leading AI innovation
The financial services industry is at the forefront of AI deployment, accounting for 29% of survey respondents. Key use cases include customer service automation (49%), software development and enhancement (46%), and marketing optimisation (32%). Crucially, all these implementations adopt a privacy-by-design approach, embedding safeguards into every layer of innovation.
While AI adoption is accelerating, challenges remain. 37% of businesses cite a lack of technical expertise as their biggest barrier, followed by privacy and security concerns (35%). To bridge this gap, Nigerian organisations are investing heavily in skills development:
- 69% are prioritising data analysis and interpretation,
- 53% are building AI literacy, and
- 40% are training staff in prompt engineering for generative AI tools.
This reflects a growing recognition that human capability development is as critical as technology acquisition in driving AI success.
Since the introduction of Nigeria’s Data Protection Act, 65% of businesses report improved regulatory awareness. Companies are increasingly conducting privacy audits (57%), adopting data minimisation practices (57%), and requiring explainability in AI decision-making (52%).
According to Michael Fauscette, CEO and Chief Analyst at Arion Research, the Nigerian model challenges the belief that AI adoption compromises privacy. “When 84% of organisations strengthen privacy through AI implementation, it proves that privacy-conscious design enhances, rather than limits, AI outcomes,” he said.
Zoho’s growth in Nigeria
Zoho’s expansion in Nigeria is being fueled by growing demand for scalable and unified business solutions. Its most popular products in the market include Zoho Workplace (enterprise email and collaboration), Books (accounting software), Campaigns (email and SMS marketing), and Zoho One (a suite of over 55 integrated business apps).
Key industries driving Zoho’s growth in Nigeria include IT services, financial services, energy, utilities, manufacturing, professional services, real estate, media, education, and retail.
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