SECTORAL PATTERNS AND CONSTRAINTS OF DIGITAL EMPLOYMENT IN EMERGING MARKETS: EVIDENCE FROM NIGERIA

Abstract

This study examined the influence of digital skills, infrastructure adequacy, platform ecosystem quality, and digital technology adoption on employment outcomes within Nigeria's e-commerce and fintech sectors. Using a cross-sectional survey of 407 MSMEs and digital platform agents, the study employed descriptive statistics, Chi-square tests, independent-samples t-tests, and a log-linear multiple regression model to analyse the determinants of digital employment generation. The results revealed significant sectoral differences in employment characteristics, with fintech enterprises recording higher proportions of formal and full-time employment than e-commerce enterprises. The independent-samples t-test further showed that fintech firms reported significantly higher employment outcomes than    e-commerce firms (t(405) = 4.25, p < .001). The regression results indicated that digital skills (β = 0.150, p < .001), infrastructure adequacy (β = 0.082, p = .008), platform ecosystem quality (β = 0.118, p = .001), e-commerce adoption (β = 0.301, p < .001) and fintech adoption (β = 0.243, p < .001) exert positive and statistically significant effects on employment outcomes. The model explained 66.4% of the variation in employment outcomes (Adjusted R² = 0.664) and satisfied key diagnostic tests for multicollinearity, heteroskedasticity, normality and autocorrelation. The study concludes that strengthening digital capabilities, improving infrastructure, enhancing platform ecosystem quality and promoting digital technology adoption are critical for expanding sustainable employment opportunities within Nigeria's digital economy. The study recommends targeted investments in digital infrastructure and digital skills development, improvements in platform ecosystem governance, wider adoption of e-commerce and fintech technologies, and expanded access to digital finance through a more enabling regulatory environment to promote inclusive and sustainable employment growth.