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By Chinenye Anuforo
Zoho, a global technology company, has reported a 75 percent increase in its Nigerian customer base in 2024, reflecting the growing appetite among local businesses for Artificial Intelligence (AI) solutions integrated with strong privacy measures.
The growth reflected Nigeria’s fast-evolving digital economy, where organizations are moving beyond experimentation to embed AI into core operations, improve customer experiences, and comply with rising data protection standards.
A new study commissioned by Zoho and conducted by Arion Research, titled “The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption,” showed that 93 percent of Nigerian businesses have already embarked on their AI journey. About 31 percent of these organizations have achieved advanced integration across their operations, while 26.5 percent have deployed AI in multiple departments. The study also found that 84 percent of businesses had strengthened their privacy measures since adopting AI, with 66 percent describing the improvements as significant.
Kehinde Ogundare, country head of Zoho Nigeria, said the findings demonstrate that Nigerian businesses are setting an example in responsible AI use. “We continue to invest in Nigeria as businesses here accelerate their adoption of technology to grow and scale. The latest study around AI and privacy proves that Nigerian businesses are leading the way in responsible adoption, tempering new technology with privacy safeguards. This mirrors Zoho’s philosophy of building contextual and privacy-first AI models that deliver tangible benefits,” he said.
The study revealed that AI adoption in Nigeria is largely leadership-driven, with more than half of survey respondents holding executive roles. Adoption is also characterized by a strong focus on privacy-first implementation, skills development and regulatory readiness. The financial sector is pioneering AI use, representing 29 percent of respondents, with customer service automation, software development, and marketing optimization ranking as the most common applications. Other industries, including IT services, energy, real estate, manufacturing, media, education, and retail, are also contributing to the trend.
Despite the surge, challenges persist. Lack of technical expertise was cited as the biggest barrier to AI adoption by 37 percent of respondents, followed by privacy and security concerns at 35 percent. In response, many businesses are prioritizing workforce development, with 69 percent focusing on data analysis and interpretation, 53 percent on AI literacy, and 40 percent on generative AI prompt engineering.
Michael Fauscette, chief executive officer and chief analyst of Arion Research, said the Nigerian model demonstrates that AI success depends on human capability as much as technology. “Organizations here are embedding AI responsibly, strengthening privacy rather than compromising it, and turning governance into a competitive advantage,” he said.
The introduction of Nigeria’s Data Protection Act has also heightened regulatory awareness, with nearly 65 percent of businesses reporting increased focus on compliance. Measures such as AI system audits, data minimization practices and explainable AI initiatives are increasingly being adopted, positioning Nigerian firms for global competitiveness.
Zoho attributed its growth in Nigeria to rising demand for scalable and unified business solutions. Popular products include Zoho Workplace for enterprise collaboration, Zoho Books for accounting, Zoho Campaigns for integrated email and SMS marketing, and Zoho One, the company’s all-in-one suite that integrates more than 55 applications.
The survey, conducted in June 2025, covered 386 professionals from medium and large organizations across sectors. Its findings suggest that Nigerian businesses are not only embracing AI but are doing so with a clear emphasis on governance, skills development and customer-centric deployment.
Analysts believe the Nigerian approach could become a benchmark for responsible AI adoption in Africa, demonstrating that innovation and privacy protection are not mutually exclusive but complementary drivers of sustainable growth.
