The effect of digital technology on enhancing productivity in Nigeria’s service sector: Evidence from Abuja (2010–2020)
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Background of the Study :
Digital technology has rapidly transformed service industries worldwide by improving efficiency, reducing transaction costs, and enabling innovative business models. In Abuja, Nigeria’s capital, the adoption of digital tools—such as cloud computing, mobile applications, and data analytics—has been pivotal in enhancing the productivity of the service sector. Between 2010 and 2020, government initiatives and private sector investments fostered digital integration in sectors including finance, telecommunications, and logistics. These innovations have enabled faster service delivery, better customer engagement, and streamlined operations (Okonkwo, 2023). Empirical evidence suggests that digitalization correlates with higher productivity levels and competitiveness, as organizations can reallocate resources to value-added activities (Adeniyi, 2024). Nonetheless, challenges remain in terms of digital literacy, infrastructural inadequacies, and cybersecurity risks that potentially constrain productivity gains (Chukwu, 2025). This study examines the impact of digital technology on productivity in Abuja’s service sector by analyzing performance indicators, adoption rates, and operational efficiencies. The research employs both qualitative assessments and quantitative data analysis to determine whether digital innovations have led to measurable improvements in productivity and to identify policy recommendations for addressing remaining challenges.
Statement of the Problem
Despite increased digital adoption, productivity improvements in Abuja’s service sector have been inconsistent. Infrastructural gaps, low digital literacy, and cybersecurity concerns limit the full benefits of technology-driven processes. While digital technology promises enhanced efficiency, the gap between investment and outcomes remains significant. This study seeks to uncover the underlying factors that hinder productivity gains despite robust digital interventions. The aim is to assess the effectiveness of current digital strategies and propose actionable measures to overcome barriers, ensuring that technological investments translate into sustainable productivity growth (Okonkwo, 2023; Adeniyi, 2024).
Objectives of the Study:
1. To evaluate the impact of digital technology on service sector productivity in Abuja.
2. To identify barriers to effective digital integration.
3. To recommend policy measures to enhance technology-driven productivity.
Research Questions:
1. How has digital technology improved productivity in Abuja’s service sector?
2. What challenges hinder the full benefits of digital adoption?
3. Which strategies can optimize technology integration?
Research Hypotheses:
1. H1: Digital technology adoption positively impacts service productivity.
2. H2: Infrastructural limitations negatively moderate digital benefits.
3. H3: Enhanced digital literacy correlates with higher productivity.
Significance of the Study (100 words):
This study provides critical insights into the role of digital technology in enhancing service sector productivity in Abuja. Its findings will guide policymakers and industry leaders in designing strategies to overcome digital barriers, optimize infrastructure, and foster innovation. Ultimately, improved digital integration can drive economic growth and competitiveness, benefitting both businesses and consumers (Chukwu, 2025).
Scope and Limitations of the Study:
The study focuses on Abuja’s service sector from 2010–2020, using productivity and digital adoption indicators. Limitations include data availability and evolving technology trends.
Definitions of Terms:
1. Digital Technology: The use of digital tools and platforms to facilitate business processes.
2. Service Sector Productivity: Efficiency and output levels in service industries.
3. Digital Literacy: The ability to use digital tools effectively.
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