This paper examined the challenges and potential benefits in e-governance for effective bureaucratization in Nigeria. The study through review of extant works in e-governance and bureaucracy assessed the concepts of bureaucracy, bureaucratization and e-governance. An instrumental case study research design was adopted for the study. Data for the study was collected through secondary sources, personal observations and interactions during conferences. Content analysis was utilized to analyze information generated. The paper, therefore found out that application of modern information and communication technologies stand to improve on public bureaucracy by infusing accountability, accessibility, and flexibility in public administration. These could be achieved through the use of close circuit cameras, computer applications and software as well as artificial intelligence in public offices. However, the challenges in tapping into this gold mine of technology in public administration in Nigeria ranges from inadequacy of skilled ICT personnels, corruption and bureaucratic resistance, poor/inconsistent policies and regulatory frameworks, inadequate public and digital awareness, inadequate ICT infrastructure and digital divide, among others. The study consequently recommended among others that government should provide modern ICT infrastructure, promote cybersecurity and theft consciousness and develop ICT policies in Nigeria.