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The impact of technological innovation on economic diversification in Nigeria: An evaluation of ICT policies in Abuja (2010–2020).

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Background of the study:
Technological innovation has become a cornerstone in advancing economic diversification in Nigeria, particularly through the strategic implementation of ICT policies in Abuja between 2010 and 2020. The rapid evolution of information and communication technologies has transformed traditional economic structures by facilitating the emergence of new sectors beyond oil dependency (Adeyemi, 2023). ICT policies introduced during this period sought to improve digital infrastructure, enhance broadband connectivity, and stimulate entrepreneurial ventures in technology‐driven industries. The integration of digital platforms in commerce, education, and governance has accelerated economic interactions and improved market efficiency. Moreover, governmental agencies have fostered collaboration between public and private sectors to drive innovation, resulting in a noticeable shift towards a knowledge‐based economy. However, infrastructural deficits, limited funding, and policy inconsistencies have hindered the full exploitation of these innovations, while regulatory uncertainties and skill gaps further restrict scalability (Chukwu, 2024). A critical analysis of these policies reveals that although substantial progress has been made, comprehensive strategies are still needed to address both technological and institutional challenges. This study, therefore, examines the mechanisms by which ICT policies have contributed to economic diversification in Abuja and identifies gaps that, if remedied, could further stimulate sustainable growth (Ibrahim, 2025).

Statement of the problem:
Despite the promising potential of ICT policies to drive economic diversification in Abuja, significant challenges continue to impede their full implementation. Inconsistencies in policy execution, coupled with infrastructural inadequacies and limited financial support, have resulted in uneven technological advancement across sectors. Regulatory uncertainties and deficits in human capital further limit the effective adoption of digital innovations. Consequently, while certain industries benefit from technological integration, others lag behind, undermining the overall diversification agenda. This study seeks to evaluate these challenges critically and explore strategies to bridge the gap between policy intent and practical outcomes, ensuring that ICT initiatives fully contribute to broadening Nigeria’s economic base (Adeyemi, 2023; Chukwu, 2024).

Objectives of the study:

  1. To evaluate the impact of ICT policies on economic diversification in Abuja.
  2. To identify challenges affecting the effective implementation of technological innovations.
  3. To recommend strategies for enhancing ICT-driven economic diversification.

Research questions:

  1. How have ICT policies influenced economic diversification in Abuja?
  2. What are the major challenges hindering the effective implementation of technological innovations?
  3. What policy measures can enhance the role of technological innovation in economic diversification?

Research Hypotheses:

  1. ICT policies positively influence economic diversification in Abuja.
  2. Infrastructural deficits and policy inconsistencies negatively affect technological innovation.
  3. Enhanced policy frameworks improve the effectiveness of ICT initiatives in promoting economic diversification.

Significance of the study:
This study is significant as it provides a comprehensive analysis of the role of technological innovation in driving economic diversification in Nigeria. By evaluating the effectiveness of ICT policies in Abuja, the research offers valuable insights for policymakers, investors, and industry leaders. The findings will help identify critical challenges and inform strategic interventions that can bridge gaps in digital infrastructure and human capital development. Ultimately, this study aims to contribute to the formulation of more robust ICT policies that foster sustainable economic growth and reduce the country’s reliance on traditional sectors (Ibrahim, 2025).

Scope and limitations of the study:
This study is limited to the evaluation of ICT policies and their impact on economic diversification in Abuja. It focuses on policy implementation, infrastructural challenges, and technological innovation within the region.

Definitions of terms:

  1. Technological Innovation: The development and application of new digital tools and processes.
  2. Economic Diversification: The process of expanding an economy’s range of sectors beyond its traditional bases.
  3. ICT Policies: Governmental strategies aimed at developing information and communication technology infrastructure and services.




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