AI shopping gains ground in Nigeria as scam concerns persist, study finds
New study finds AI is changing how Nigerians shop online, even as concerns over fraud and children's online safety continue to grow.
Artificial intelligence is becoming an increasingly important part of how Nigerians shop online, but concerns about fraud and online safety remain widespread, according to a new consumer study by global payments company Visa.
The company’s latest Stay Secure report found that 88 percent of Nigerian consumers have used AI tools to support their shopping activities, reflecting the rapid adoption of emerging technologies in digital commerce.
The study showed that consumers are largely positive about the role of AI in online shopping, with 97 percent saying technologies such as AI-powered tools have made the experience faster and more convenient. AI is also influencing purchasing decisions, as many consumers now discover new brands and retailers through digital platforms.
Despite the growing acceptance of AI, consumers remain cautious about allowing the technology to complete transactions on their behalf. Only 34 percent of respondents said they would trust AI systems to handle checkout and purchases independently.
At the same time, many consumers see AI as a useful tool in the fight against fraud. The report found that 76 percent believe AI has made scams easier to identify, while 89 percent expect the technology to play an important role in protecting consumers from fraud in the future.
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The findings come as social commerce continues to expand across Nigeria. According to the report, 83 percent of consumers have purchased products directly through social media platforms, highlighting the growing role of social networks in online retail.
However, the shift has also created new opportunities for fraudsters. More than half of respondents said they had experienced a financial scam within the last year, with social media emerging as the most common channel through which scams occurred. Among those who had been targeted, 57 percent said the incident originated on a social media platform.
The study also raised concerns about children’s exposure to online fraud. About 76 percent of respondents said children in their lives struggle to recognise scams, while 62 percent reported knowing a child who had fallen victim to a scam while gaming or shopping online.
As digital transactions become more common among younger users, the report found that 33 percent of Nigerian parents have children who can access mobile payment applications or digital wallets.
The findings suggest consumers expect institutions to play a leading role in fraud prevention. Nearly half of respondents said banks and financial institutions should bear primary responsibility for protecting users from online fraud, while others pointed to regulators and payment service providers.
Commenting on the report, Visa’s Head of Risk for Sub-Saharan Africa, Irene Auma, said the growth of online shopping and social commerce has been accompanied by increasingly sophisticated fraud risks.
“Consumers see fraud protection as a shared responsibility, but they expect financial institutions, governments and payment providers to take the lead, underscoring the importance of secure-by-design payment systems,” she said.
Auma added that while consumers are embracing AI-driven shopping experiences, many still want reassurance that emerging technologies can be trusted when handling financial transactions.
“Consumers are embracing the convenience AI can bring to shopping, but remain cautious when it comes to AI completing purchases on their behalf,” she said.
