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Digital Innovation, Data-Driven Technologies and Unemployment Reduction in Nigeria: Evidence From 2015-2025


Authors : Isah, Mohammed Ogaji; Obioru, Jolomi Irene; Saliu Abdulrazaq Adinoyi; Abubakar Isah

Volume/Issue : Volume 11 - 2026, Issue 6 - June


Google Scholar : https://tinyurl.com/3w7wjffw

Scribd : https://tinyurl.com/ydjfmnuy

DOI : https://doi.org/10.38124/ijisrt/26jun1872

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Abstract : This study examines the relationship between digital innovation, data-driven technologies, and unemployment reduction in Nigeria over the period 2015-2025. Employing a mixed-methods approach that combines quantitative time-series analysis with qualitative case study evidence, the research investigates how artificial intelligence, big data analytics, digital platforms, data science, and e-government systems have influenced employment outcomes in Africa's largest economy. The findings reveal a complex, non-linear relationship: while data-driven technologies have contributed to employment generation through digital payment systems (ATM, POS, mobile money), gig economy platforms, and ICT infrastructure expansion, they have simultaneously engendered job displacement in traditional sectors and exacerbated skill mismatches. The study contributes to the literature by demonstrating that the employment effects of digital innovation are contingent upon digital infrastructure, skill availability, and institutional frameworks—a nuanced finding that moves beyond the simplistic "technology creates jobs" narrative. Policy implications emphasize the need for coordinated investments in digital literacy, social protection for displaced workers, and regulatory frameworks that maximize the employment gains of digital transformation while mitigating its disruptive effects.

Keywords : Digital Innovation, Data-Driven Technologies, Unemployment, Nigeria, Artificial Intelligence, Gig Economy, Digital Skills, Employment Generation.

References :

  1. Babalola, C. I. (2025). Digital technology exposure and female youths' labour force participation in Nigeria. Covenant University, Ota.
  2. Bukola, A. A., & Oyejope, E. G. (2025). Acquisition of digital skills and its impact on unemployment reduction among Nigerian youth. Lead City Journal of the Social Sciences, 10(3), 96–115.
  3. Egbetade, I. S., Nwokocha, A. F., & Odufeso, M. S. (2026). Digital payment systems and the impact on employment generation: Evidence from Nigeria. Journal of Economics and Allied Research, 11(1), 244–261.
  4. NITDA. (2025). NITDA reaffirms drive for a digitally inclusive, innovation-led Nigerian economy. National Information Technology Development Agency.
  5. Okpala, C. S., Nworie, A. E., Christian, N. C., Mbam, N. M., & Nwodom, A. I. (2026). Re-evaluation of the relationship between information and communication technology and unemployment in Nigeria. African Journal of Politics and Administrative Studies, 19(1).
  6. Federal Ministry of Communications and Digital Economy. (2020). National Digital Economy Policy and Strategy (NDEPS) 2020–2030. Abuja: Federal Government of Nigeria.
  7. Nigerian Communications Commission. (2025). How telecom provided 500,000 jobs in two decades. NCC Press Release.
  8. World Bank. (2025). Nigeria digital economy diagnostic report. Washington, DC: World Bank Group.
  9. National Bureau of Statistics. (2023). Labor Force Statistics: Unemployment and underemployment report. Abuja: NBS.
  10. Bolt & Ipsos. (2026). Nigeria gig economy report.
  11. Federal Government of Nigeria. (2023). Nigeria Startup Act. Abuja: Federal Government of Nigeria.
  12. International Labour Organization. (2024). World Employment and Social Outlook: Trends 2024. Geneva: ILO.
  13. Digital Education Council & Global Finance & Technology Network. (2025). AI in the Workplace 2025 report.
  14. Leadership Newspaper. (2025). Federal Government begins personnel audit, skills gap analysis in civil service.
  15. BusinessDay. (2025). Catalysing Nigeria's digital transformation: Developing a roadmap.

This study examines the relationship between digital innovation, data-driven technologies, and unemployment reduction in Nigeria over the period 2015-2025. Employing a mixed-methods approach that combines quantitative time-series analysis with qualitative case study evidence, the research investigates how artificial intelligence, big data analytics, digital platforms, data science, and e-government systems have influenced employment outcomes in Africa's largest economy. The findings reveal a complex, non-linear relationship: while data-driven technologies have contributed to employment generation through digital payment systems (ATM, POS, mobile money), gig economy platforms, and ICT infrastructure expansion, they have simultaneously engendered job displacement in traditional sectors and exacerbated skill mismatches. The study contributes to the literature by demonstrating that the employment effects of digital innovation are contingent upon digital infrastructure, skill availability, and institutional frameworks—a nuanced finding that moves beyond the simplistic "technology creates jobs" narrative. Policy implications emphasize the need for coordinated investments in digital literacy, social protection for displaced workers, and regulatory frameworks that maximize the employment gains of digital transformation while mitigating its disruptive effects.

Keywords : Digital Innovation, Data-Driven Technologies, Unemployment, Nigeria, Artificial Intelligence, Gig Economy, Digital Skills, Employment Generation.

Paper Submission Last Date
31 - August - 2026

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