Sustainability of Nigeria's Digital Economy, the Interplay of Governance, Innovation, and Institutional Framework

The sustainability of Nigeria’s digital economy depends on effective governance, strong institutional frameworks, and continuous innovation. This study explores how these factors influence digital transformation and long-term economic growth. Using a mixed-method approach, data were collected from policymakers, digital entrepreneurs, and regulatory agencies to assess key challenges and opportunities. Quantitative analysis, including regression and structural equation modeling (SEM), was applied to determine the impact of governance policies, institutional support, and digital innovation on economic sustainability. Findings indicate that Nigeria’s legal framework for the digital economy received the highest mean score (4.75), reflecting confidence in existing policies, whereas government support for digital growth scored lower (3.67), highlighting gaps in policy implementation. Bureaucratic bottlenecks (4.20) remain a significant challenge, despite moderate approval of regulatory oversight (4.11) and government funding (4.05). Additionally, inadequate institutional collaboration and weak enforcement mechanisms hinder fair competition and consumer protection. To enhance the digital economy’s sustainability, the study recommends streamlining regulatory processes, increasing financial incentives for digital startups, strengthening public-private partnerships, and improving digital literacy programs. By fostering a more inclusive and supportive digital ecosystem, Nigeria can unlock new economic opportunities, drive innovation, and strengthen its position in the global digital economy. These insights provide valuable guidance for policymakers and industry stakeholders seeking to advance Nigeria’s digital transformation.