The rapid expansion of the digital economy has created new opportunities for youth innovation and entrepreneurship across developing economies. In Nigeria, increasing internet penetration, mobile technology adoption, and digital platforms have enabled young entrepreneurs to participate actively in economic transformation and national development. This study examines the role of youth innovation and digital entrepreneurship as drivers of national development in Nigeria. The paper adopts a quantitative surveyresearch design using primary data collected through a structured questionnaire administred to 250 respondents. and policy reports, government documents, and international development agencies. The study explores how youth-driven digital enterprises contribute to employment generation, technological advancement, poverty reduction, financial inclusion, and economic diversification. It further identifies major challenges confronting young digital entrepreneurs, including inadequate infrastructure, limited access to finance, inconsistent government policies, digital skill gaps, and cybersecurity concerns. The study concludes that strengthening digital ecosystems, expanding innovation hubs, improving entrepreneurial education, and implementing supportive regulatory frameworks are essential for maximizing the contributions of youth innovation to sustainable national development. The paper recommends strategic public-private partnerships, increased investment in digital infrastructure, youth-focused financing schemes, and policy reforms aimed at fostering inclusive digital entrepreneurship in Nigeria.