Generative AI tools stand at the threshold of innovation and the erosion of the long-standing values of creativity, critical thinking, authorship, and research in higher education. This research crafted a novel framework from the technology, organization, and environment (TOE) framework to guide higher educational institutions in Nigeria to navigate the ethical dilemma of generative AI. A questionnaire was used to collect data from twelve higher institutions among lecturers, students, and researchers across the six (6) geopolitical zones of Nigeria. The structural equation modeling was used to analyze the data using the SPPS Amos version 23. The results revealed that factors such as perceived risks of generative AI, Curriculum support, institutional policy, and perceived generative AI trends positively impact the need for a generative AI ethical framework in higher educational institutions in Nigeria. Furthermore, the study contributes to the adoption of theory to navigate the ethical dilemma in the use of generative AI tools in higher educational institutions in Nigeria. It also provides some practical implications that suggest the importance of inculcating ethical discussions into the curriculum as part of institutional policy to create awareness and guidance on the use of generative AI.