Nigerian companies are investing heavily in privacy protection as they deepen their adoption of artificial intelligence (AI), according to a new report titled The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption conducted by Arion Research on behalf of Zoho.
The report, unveiled during Zoholics Nigeria, shows that 40% of organisations dedicate more than 30% of their IT budgets to privacy, underscoring a growing recognition that data governance is a competitive advantage.
In addition, 94% of organisations now have a dedicated privacy officer or team, a figure that surpasses global averages.
Financial Sector Leading AI Adoption
The financial sector is at the forefront of Nigeria’s AI transformation, making up 29% of survey respondents.
Top AI use cases in the sector include:
- Customer service automation (49%)
- Software development and enhancement (46%)
- Marketing optimisation (32%)
All of these implementations are being driven with strong privacy and governance principles in mind.
Skills Shortages Remain a Challenge
Despite progress, Nigerian businesses face challenges in AI skills development. According to the report:
- 37% of organisations cited a lack of technical expertise as the top barrier.
- 35% identified privacy and security concerns as another major challenge.
To close these gaps, companies are prioritising:
- Data analysis and interpretation skills (69%)
- AI literacy (53%)
- Prompt engineering for generative AI tools (40%)
Stronger Regulatory Awareness Post-Data Protection Act
The study revealed that nearly 65% of organisations have increased their regulatory consciousness since the introduction of Nigeria’s Data Protection Act.
Adopted practices include:
- Regular privacy audits of AI systems (57%)
- Data minimisation in AI training (57%)
- Explainability requirements for AI decisions (52%)
CEOs Driving Nigeria’s AI Transformation
Executive leadership is playing a central role in the rapid adoption of AI. More than 50% of respondents occupy CEO or executive positions, showing top-level commitment to scaling AI responsibly.
The report found that:
- 93% of organisations have already embarked on their AI journey.
- 31% achieved advanced AI integration across the organisation.
- 26.5% are implementing AI across multiple departments.
AI and Privacy: A Competitive Advantage
Michael Fauscette, CEO & Chief Analyst of Arion Research, emphasised that Nigeria is proving AI adoption and privacy protection can go hand in hand.
“The Nigerian model challenges the conventional wisdom that AI adoption requires privacy trade-offs. When 84% of organisations strengthen privacy measures through AI implementation, it demonstrates that privacy-conscious design enhances AI outcomes,” Fauscette said.
Zoho’s Growth in Nigeria
Alongside the report findings, Zoho announced a 75% customer growth in Nigeria in 2024.
“We continue to invest in Nigeria as businesses accelerate technology adoption to grow and scale,” said Kehinde Ogundare, Country Head, Zoho Nigeria.
Conclusion
The report highlights how Nigerian firms are setting a global benchmark for responsible AI adoption, with 40% investing over 30% of IT budgets in privacy protection and 94% employing privacy officers. By embedding governance, skills development, and executive leadership into AI strategies, Nigerian companies are demonstrating that privacy is not a barrier but a driver of innovation and trust.
