article · Zenodo (CERN European Organization for Nuclear Research)
An investigation into the relationship between digitalisation and economic growth in Nigeria between 1991 and 2024 reveals that internet adoption has not yet produced a statistically significant effect on gross domestic product. Although connectivity has expanded, internet usage remains predominantly concentrated in low-productivity activities rather than driving broader output. In contrast, human capital development demonstrates a positive and significant influence on economic growth. Measures of gross fixed capital formation and government effectiveness currently show weak or adverse effects. These outcomes indicate that expanding digital access alone is insufficient to fuel economic performance. Enabling digital technologies to contribute meaningfully to long-term national growth requires targeted measures that foster productive uses of connectivity, strengthen human capital, and address shortcomings in institutional effectiveness.
Expanding connectivity does not automatically translate into broader prosperity. These findings show that digital technology requires complementary foundations, notably skilled human capital and effective public institutions, if internet adoption is to move beyond casual use and become a genuine engine for national productivity and sustainable development.
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This study examined the relationship between digitalisation and economic growth in Nigeria using annual time-series data from 1991 to 2024. Digitalisation is proxied by the percentage of internet users, while economic growth is measured by gross domestic product, with gross fixed capital formation, human development index, government effectiveness and inflation included as control variables. The study employed Fully Modified Ordinary Least Squares (FMOLS) as the main estimation technique and Dynamic Ordinary Least Squares (DOLS) for robustness. The result showed that digitalisation does not yet have a statistically significant effect on economic growth in Nigeria, suggesting that internet usage remains largely concentrated in low-productivity activities. On the other hand, human capital exerts a positive and significant influence on growth, while investment and government effectiveness show weak or adverse effects. The findings highlight the need for policies that deepen productive digitalisation, strengthen human capital development and improve institutional effectiveness to enable digital technologies to contribute meaningfully to Nigeria’s long-term economic growth.
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DOI: 10.5281/zenodo.19462739
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