By Atoyebi Nike
Nigerian companies are ramping up investments in privacy protection as they expand artificial intelligence (AI) adoption, with 40% of firms now dedicating over 30% of their IT budgets to data security, according to a new report.
The study, The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption, conducted by Arion Research on behalf of Zoho and released during Zoholics Nigeria, revealed that 94% of organizations have appointed dedicated privacy officers a figure surpassing global averages.
The financial sector is leading the way, applying AI to customer service automation, software development, and marketing while embedding privacy principles. However, skills shortages remain a major challenge, with 37% of firms citing lack of technical expertise and 35% pointing to privacy and security concerns.
To close these gaps, most organizations are prioritizing data analysis, AI literacy, and prompt engineering for generative AI. Since the enactment of Nigeria’s Data Protection Act, nearly 65% of companies have strengthened compliance, adopting practices such as privacy audits, data minimization, and explainable AI systems.
Arion Research CEO Michael Fauscette noted that Nigerian firms are proving privacy and innovation can coexist, with 84% of businesses reporting stronger privacy measures after adopting AI. Zoho also announced 75% customer growth in Nigeria in 2024, underscoring the country’s expanding technology ecosystem.
