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By Chinenye Anuforo
Microsoft has stressed the need for digital government as a critical foundation for Nigeria’s digital economy, warning that outdated public systems could limit growth despite rising innovation and internet penetration.
In a statement by Nonye Ujam, Director of Government Affairs for Microsoft West Africa, the company said Africa stands at a “once-in-a-generation opportunity” to accelerate development through the digital economy, which it described as central to job creation, productivity, and global competitiveness.
Ujam noted that while private sector innovation is advancing rapidly, the efficiency of public systems remains a key factor in determining economic outcomes. She explained that across many African countries, including Nigeria, processes such as business registration, tax administration, land transactions, and licensing are still largely manual or only partially digitised.
According to her, this creates bottlenecks that increase costs, slow business activity, and weaken trust in public institutions. She warned that digitisation without broader institutional reform could end up reinforcing inefficiencies, citing fragmented platforms, inconsistent data standards, and poor interoperability among government agencies.
Microsoft maintained that digital government is fundamentally a governance issue rather than just a technological one, requiring strong institutional capacity, effective change management, cybersecurity, and coordinated implementation to deliver meaningful results.
The company, however, acknowledged Nigeria’s strong potential to emerge as a leading digital economy in Africa, pointing to its more than 154 million internet users and a vibrant innovation ecosystem. It added that artificial intelligence could generate up to $136 billion in productivity gains across major African markets by 2030, with Nigeria expected to account for about 43 per cent of that value.
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It also noted that Nigeria’s startup ecosystem continues to attract investment, securing $410 million in 2024 and exceeding $555 million in 2025, particularly in fintech and digital service delivery.
Microsoft further described the proposed National Digital Economy and E-Governance Bill 2024 as a major step toward building a coherent and future-ready digital framework. The bill is expected to institutionalise electronic administrative processes, improve interoperability across government institutions, and strengthen data governance in the public sector.
Drawing from international experience, the company cited Estonia and India as examples of successful digital transformation. Estonia, it said, has fully digitised its public services and saves about two per cent of its GDP annually through streamlined processes, while India has built a robust digital public infrastructure with its digital economy projected to contribute up to 20 per cent of GDP by 2030.
Microsoft emphasised the importance of public-private partnerships in driving digital transformation, noting its collaboration with agencies such as the National Information Technology Development Agency and the Nigeria Data Protection Commission.
The company said its initiatives, including Digital Skills Nigeria and the 3MTT programme, have reached over six million Nigerians with digital and artificial intelligence skills, with more than 150,000 certifications issued to date.
It added that its cloud platform, Microsoft Azure, is supporting governments and businesses with secure, scalable infrastructure for next-generation digital services.
Ujam concluded that achieving the full benefits of the digital economy will require more than technology deployment, stressing the need for strong leadership, governance, and institutional reform to build efficient, transparent, and citizen-focused public systems.
