Digital government Nigeria crucial as Microsoft warns outdated systems could slow growth despite rising innovation and internet use

Microsoft has warned that weak digital government Nigeria frameworks could undermine the country’s economic growth, despite rapid advances in innovation and rising internet penetration.

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In a statement issued by Nonye Ujam, Director of Government Affairs for West Africa, the company described digital governance as a decisive foundation for unlocking the full potential of the digital economy.

Ujam said Africa is facing a “once-in-a-generation opportunity” to accelerate development through digital transformation, but cautioned that outdated public systems remain a critical constraint.

She noted that processes such as business registration, tax administration, land transactions and licensing in Nigeria are still largely manual or only partially digitised, creating costly bottlenecks that slow economic activity and weaken institutional trust.

The digital government Nigeria gap, she explained, risks becoming more pronounced if reforms do not go beyond technology deployment to address governance, coordination and system integration challenges.

“Digitisation without broader institutional reform can reinforce inefficiencies,” Ujam said, pointing to fragmented platforms, inconsistent data standards and limited interoperability across agencies.

Microsoft stressed that digital government is fundamentally a governance issue requiring strong institutional capacity, cybersecurity frameworks and effective change management to deliver meaningful impact.

Despite these concerns, the company described Nigeria as a high-potential digital economy, citing more than 154 million internet users and a vibrant innovation ecosystem.

It projected that artificial intelligence could generate up to $136bn in productivity gains across major African markets by 2030, with Nigeria expected to account for about 43 per cent of that value.

Microsoft also highlighted sustained investor confidence in Nigeria’s technology sector, noting that startups attracted $410m in funding in 2024 and over $555m in 2025, particularly in fintech and digital services.

The company described the proposed National Digital Economy and E-Governance Bill 2024 as a significant step towards building a coherent digital framework, expected to strengthen interoperability and data governance across public institutions.

Drawing on global examples, Microsoft pointed to Estonia’s fully digitised public services, which reportedly save about two per cent of GDP annually, and India’s expanding digital infrastructure projected to contribute up to 20 per cent of GDP by 2030.

The firm emphasised the importance of public-private partnerships, noting its collaboration with the National Information Technology Development Agency and the Nigeria Data Protection Commission to advance digital capacity.

It added that initiatives such as Digital Skills Nigeria and the 3MTT programme have reached more than six million Nigerians, with over 150,000 certifications issued in digital and artificial intelligence skills.

Microsoft’s cloud platform, Microsoft Azure, was also highlighted as a key enabler supporting governments and businesses with scalable and secure infrastructure.

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Ujam concluded that achieving a resilient and inclusive digital economy will require strong leadership and coordinated reforms, describing efficient and transparent public systems as essential to long-term growth.