June 2025 Edition

INFLUENCE OF DIGITAL ECONOMY ON BUSINESS OPERATIONS IN LAGOS STATE, NIGERIA

Rukevwe J. OLUGHOR (Ph.D), Theophilus A. Aguguom (Ph.D) & Ngozi A. Chikere (Ph.D)

Abstract

This study investigated the influence of the digital economy on business operations in Nigeria, with a particular attention on the impact of digital infrastructure and digital financial services on operational efficiency and profitability. A survey design was employed, and data were collected through structured questionnaires administered to 100 respondents across digital business firms. Descriptive statistics, correlation, and regression analyses were used to examine the relationships among variables. The findings revealed strong and statistically significant positive relationships between digital economy dimensions and business operations. Digital infrastructure showed a strong correlation with business operations (r = 0.722, p < 0.01), while digital financial services also demonstrated a significant correlation (r = 0.648, p < 0.01). A moderate positive correlation was observed between digital infrastructure and digital financial services (r = 0.453, p < 0.01), suggesting a corresponding relationship. Regression results further confirmed the predictive strength of both dimensions. Digital infrastructure explained 52.1% of the variance in business operations (R² = 0.521, F = 106.489, p < 0.001), with a beta coefficient (? = 0.663), indicating a 66.3% improvement in business operations. Similarly, digital financial services accounted for 42.0% of the variance (R² = 0.420, F = 71.450, p < 0.01), with a beta value (? = 0.578), indicating a 57.8% rise in profitability. The study emphasized the importance of strengthening digital infrastructure and expanding access to financial technologies. It recommends targeted investments and digital capacity-building to enhance business performance, contributing empirical evidence to the digital transformation discourse in emerging economies

Keywords

Business Operations, Digital Economy, Digital Financial Services, Digital Infrastructure, Operational Efficiency.

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