BI-DIRECTIONAL DETERMINANTS OF PUBLIC SERVICE EFFICIENCY ON DIGITAL TRANSFORMATION IN NIGERIA

Abstract

This study investigates the bi-directional relationship between public service efficiency (PSE) and digital transformation (DIT) in Nigeria from 2014 to 2024, using E-Government Development Index (EGDI) for DIT and proxies like Public Debt-to-GDP Ratio (FS), Government Effectiveness Index (GOV), Public Sector Employment (GS), and Inflation (INF) for PSE. Descriptive statistics show moderate DIT progress, rising debt, and volatile inflation. ADF tests confirm mixed stationarity; Granger causality reveals bi-directional effects between DIT and FS/INF, and unidirectional DIT to GS. Findings indicate DIT enhances fiscal efficiency (p=0.071, FS→DIT; p=0.069, DIT→INF), but governance quality remains unresponsive. Recommendations include deploying digital fiscal platforms, AI- driven inflation tools, and e-governance frameworks to boost efficiency and sustainability.