The emergence of Artificial Intelligence (AI) is transforming higher education globally by driving innovation, efficiency, and digital security. Yet, universities owned by Lagos State in Nigeria such as Lagos State University (LASU), Lagos State University of Education (LASUED), and Lagos State University of Science and Technology (LASUSTECH) remain behind in adopting AI for effective governance and cybersecurity protection. This position paper argues that the strategic integration of AI offers a practical pathway for improving administrative operations, safeguarding data, and enhancing academic delivery in Nigerian higher education. The objective of this paper is to present AI as a catalyst for educational transformation and as a sustainable solution to growing cybersecurity threats. It emphasizes the role of AI in ensuring data integrity, transparency, and resilience across academic and administrative structures. The implications reveal that AI can modernize university management, support ethical digital governance, and foster student centered learning environments. However, implementation faces major challenges including poor digital infrastructure, limited AI literacy, low funding, ethical concerns, and fear of job displacement. The paper concludes that successful AI adoption in Lagos State universities requires visionary leadership, ethical foresight, and inclusive digital policies. It recommends the establishment of a Lagos State Artificial Intelligence in Education Policy, investment in infrastructure, continuous capacity building, and the creation of AI research centers. Through these measures, Lagos State universities can achieve secure, efficient, and human centered digital transformation.