A new study revealed that Zoho, a global technology company, has recorded 75 percent customer growth in Nigeria in 2024, driven by local businesses’ growing appetite for Artificial Intelligence (AI) solutions paired with robust privacy measures.
The growth reflects Nigeria’s expanding digital economy, where companies across sectors are integrating AI to streamline operations, enhance customer engagement, and strengthen data protection.
A new study commissioned by Zoho, titled: ‘The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption’, conducted by Arion Research, underscores the country’s leadership in balancing AI innovation with privacy safeguards.
According to the study, 93 percent of of Nigerian businesses have already embarked on their AI journey, with 31 percent achieving advanced integration across entire organisations and 26.5 percent deploying AI in multiple departments.
Notably, 84 percent of respondents said they had strengthened privacy measures since adopting AI, with 66 percent describing these improvements as significant.
“We continue to invest in Nigeria as businesses here accelerate their adoption of technology to grow and scale. The latest study around Al and Privacy proves that Nigerian businesses are leading the way in responsible Al adoption, as they temper the new technology with privacy measures.
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“This mirrors Zoho’s philosophy of building contextual and privacy-first AI models that can help businesses realise tangible benefits. We infuse our AI solutions – from conversational and prescriptive to agentic and generative – with business context so that it can provide organisations with decision intelligence,” said Kehinde Ogundare, country head, Zoho Nigeria.
The study highlights a uniquely Nigerian approach: leadership-driven AI adoption, privacy-first implementation, skills-focused workforce development, and regulatory preparedness. More than half of survey respondents occupy executive roles, indicating that adoption is often driven from the top down.
The financial sector is pioneering the integration of AI with privacy by design, representing 29 percent of survey respondents. Key applications include customer service automation (49 percent), software development and enhancement (46 percent), and marketing optimisation (32 percent). Beyond finance, industries such as IT hardware and services, energy, manufacturing, real estate, media, education, and retail are also driving adoption, contributing to Zoho’s rapid growth in the country.
Despite the surge, businesses face challenges. Lack of technical expertise remains the top barrier, cited by 37 percent of respondents, followed closely by privacy and security concerns at 35 percent. In response, 69 percent of organisations are prioritising data analysis and interpretation skills, 53 percent are emphasising AI literacy, and 40 percent are investing in generative AI prompt engineering skills.
“The Nigerian model shows that AI success relies more on human capability than technology alone
Organisations here are embedding AI responsibly, strengthening privacy measures rather than compromising them, and turning governance into a competitive advantage,” said Michael Fauscette, CEO & chief analyst at Arion Research LLC.
Nearly 65 percent of businesses reported heightened regulatory awareness following the introduction of Nigeria’s Data Protection Act. Measures such as regular AI system audits (57 percent), data minimisation practices (57 percent), and explainable AI initiatives (52 percent) demonstrate a proactive approach to compliance that also positions companies for global competitiveness.
Zoho attributes its growth to rising demand for scalable, unified business solutions. Flagship products driving adoption include Zoho Workplace for enterprise collaboration, Zoho Books for accounting, Zoho Campaigns for integrated email and SMS marketing, and Zoho One, the all-in-one suite that combines more than 55 applications.
The survey, conducted in June 2025, involved 386 professionals from medium and large organisations across various industries. The results provide insights into how Nigerian businesses are operationalising AI while maintaining a strong governance framework — a model that experts say could set a benchmark for the wider African region.
The Nigerian blueprint, combining executive leadership, skills development, customer-centric AI deployment, and privacy-conscious governance, demonstrates that AI innovation and privacy protection are not mutually exclusive. As global companies look to expand responsibly in Africa, Nigeria’s example illustrates that strong governance can enhance trust, drive adoption, and create sustainable competitive advantages in the AI era.
