From Tech Skills to Performance Gains: How Digital Literacy Drives Productivity Improvements in the Public Sector

With rapid technological advancements, developing a digitally literate workforce is imperative for public sector organizations to enhance performance. However, research linking digital literacy and employee outcomes in developing country contexts has been limited. This study investigated the relationship between digital literacy and productivity among local government employees in Nigeria. A survey was conducted with 113 employees in Ilorin West Local Government in Nigeria. PLS-SEM was used for the analysis. Digital literacy demonstrated significant positive effects on productivity. Access to ICT positively moderated the digital literacy-productivity relationship. The study makes important theoretical contributions by extending ICT adoption research to public sector contexts and revealing the performance benefits of digital literacy in the workplace. Practically, it capacitates public organizations to increase investments in structured digital skills development programs to motivate employees and unlock productivity improvements.