Nigeria has emerged as a world leader in artificial intelligence (AI) adoption, outpacing global averages in both deployment and privacy safeguards, according to a new study by Arion Research. The report, “The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption,” reveals that Nigerian businesses are embedding AI responsibly while strengthening governance — a trend positioning the country as a model for privacy-first innovation.
The study shows that 94% of Nigerian organisations now have a dedicated privacy officer or team, far above the global average. Around 40% allocate more than 30% of their IT budgets to privacy protection, signalling that data governance is increasingly seen as a competitive edge rather than a compliance hurdle. Over half of the 386 companies surveyed have moved beyond experimentation to full AI deployment, with 31% reporting advanced integration across multiple departments.
Speaking at the Zoholics Nigeria 2025 conference in Lagos, Kehinde Ogundare, Country Head of Zoho Nigeria, said Nigerian firms are “leading the way in responsible AI adoption, tempering innovation with privacy safeguards.” He also noted a projected 75% customer growth for Zoho in Nigeria in 2024, underscoring the country’s growing importance as one of its fastest-expanding markets in Africa.
The financial services sector is at the forefront of AI deployment, making up 29% of respondents. Popular use cases include customer service automation (49%), software development (46%) and marketing optimisation (32%). Crucially, these implementations adopt a “privacy-by-design” model, ensuring that data protection is built into every layer of innovation. The report also notes that 84% of organisations strengthened privacy measures after adopting AI, with two-thirds describing these improvements as significant.
Despite rapid progress, challenges remain. The report identifies a shortage of technical expertise (37%) and ongoing privacy concerns (35%) as the biggest hurdles. To close the gap, 69% of organisations are investing in data analysis skills, 53% are building AI literacy, and 40% are training staff in prompt engineering for generative AI. Since Nigeria’s Data Protection Act came into force, 65% of businesses report improved regulatory awareness and wider use of privacy audits and data minimisation. Arion Research CEO Michael Fauscette says the Nigerian model proves that privacy-conscious design “enhances, rather than limits, AI outcomes,” positioning the country as a benchmark for responsible AI worldwide.
source: leadership