Ensuring the Longevity of Nigeria’s Digital Economy: Governance, Innovation, And Institutional Dynamics

Abstract

The longevity of Nigeria’s digital economy depends on effective governance, institutional efficiency, and continuous innovation. This study investigates how these factors interact to drive digital transformation and sustainable economic growth. Adopting a mixed-method approach, data were collected from policymakers, digital entrepreneurs, and regulatory agencies to identify critical challenges and opportunities. Quantitative analysis using regression and structural equation modeling (SEM) was employed to evaluate the effects of governance quality, institutional frameworks, and innovation on economic sustainability.
Findings reveal that Nigeria’s legal framework for the digital economy recorded the highest mean score (4.75), indicating stakeholder confidence in existing policies, while government support for digital growth was comparatively low (3.67), pointing to weaknesses in policy execution. Bureaucratic inefficiencies (4.20) emerged as significant obstacles to progress, despite moderate approval of regulatory oversight (4.11) and government funding (4.05). Additionally, weak institutional collaboration and poor enforcement mechanisms were identified as major barriers to fair competition and consumer protection.
The study recommends streamlining regulatory processes, expanding financial incentives for digital startups, strengthening public-private partnerships, and promoting digital literacy initiatives. By fostering a transparent, innovation-driven, and inclusive digital ecosystem, Nigeria can enhance global competitiveness and ensure long-term economic sustainability. These insights provide valuable guidance for policymakers, industry leaders, and development stakeholders seeking to fortify Nigeria’s digital economy.