Ifeoma Loretto Nnaji, Musa Adekunle Ayanwale, Ikechukwu Ogeze Ukeje, Raphael Abumchukwu Ekwunife, Collins Moses Igwe, Emmanuel Onyekachi Okwor, Chidi Iroko Nwuzor
Digital transformation is critical for strengthening governance and improving performance in Nigeria's higher education institutions (HEIs). However, persistent gaps in digital skills, infrastructure, and policy implementation continue to hinder progress. This study investigates these challenges and examines how AI-enabled digital tools can enhance governance, institutional effectiveness, and sustainable education management (SEM). Using a qualitative research design, the study drew on interviews with 21 key stakeholders including university administrators, ICT personnel, policymakers, and student leaders supplemented by documentary and policy analysis. Data were analyzed using interpretative phenomenological analysis and thematic procedures to capture lived experiences and institutional practices related to digital transformation. Findings reveal four dominant issues: inadequate digital literacy among staff, weak governance implementation structures, limited readiness for AI adoption, and significant infrastructural deficits. While participants acknowledged the potential of AI to improve administrative efficiency, decision-making, and academic processes, they also raised concerns about job displacement, ethical risks, and regulatory gaps. To address these challenges, the study proposes the AI-Driven Staff Training Modules and Performance Appraisal (AI-STMsPA) framework, designed to strengthen staff digital skills, promote transparent HR processes, and support sustainable higher education governance. Overall, the study demonstrates that effective digital transformation in Nigerian HEIs requires coordinated interventions that integrate capacity building, ethical AI governance, infrastructure development, and inclusive policy implementation. These insights contribute to achieving Sustainable Development Goals (SDGs) 4, 8, 9, and 16 by promoting quality education, decent work, innovation, and strong institutions.