The Economy Impact of the Deregulation of the Telecommunication Industry in Nigeria
CHAPTER ONE
AIMS AND OBJECTIVES
The main objective of the study IS to ascertain the quantitative and qualitative evidence concerning the efficiency and welfare improving effects of deregulation of the telecommunications sector in Nigeria. the specific objectives of the study are:
- To analyse the production structure of Nigerian telecommunications and estimate the total factor productivity growth.
- To decompose total factor productivity growth into scale economies and deregulation effects with a view to estimating efficiency gains due to deregulation.
- To assess the regulatory changes in the sector in the wake of commercialization.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Framework
Telecommunication
According to Raman (2015), telecommunication happens when two individuals share information. He continued, “Technology is used to transmit data through a physical medium, such as a signal cable or electromagnetic waves.” According to Sajjad (2017), telecommunication is one of the most commonly used modes of global communication. He continued by stating that telecommunications has become a significant part of the global economy, increasing productivity and the rate of GDP or GDP per capita growth. According to Badran, the telecom industry is a network industry, and broadband (or high-speed internet connectivity) is a new technology that is widely used to access the internet worldwide (2012). Telecommunications devices are systems that enable the transmission of signals between two or more points or users, allowing them to communicate and exchange data (Wainaina, 2005). According to Magaji and Eke (2013), telecommunication is simply communication over a long distance using defined devices at a high rate. However, the study is interested in the percentage contribution of telecommunications to Nigeria’s GDP. This is the percentage of overall real GDP that is allocated to telecommunications. It is important to keep in mind that telecommunications is a major driver of economic development in virtually every economy. As with roads and railways, telecommunications is a type of infrastructure. Similarly to how building a highway or railway in a particular area stimulates or boosts the economy, telecom has an impact on economic progress.
Teledensity
Teledensity, as described by the World Bank (2018), is the number of telephone connections per hundred people living in a region. Teledensity, as described by Mamoun and Talib (2017), is simply the number of telephone lines per 1,000 people. Teledensity, as described by Sulaiman (2013), is the rate of growth of mobile phone users. Teledensity (or penetration rate) was specified by Ani, Ugwunta, Eneje, and Okwo (2014) as the number of fixed-line and mobile phone subscribers per 100 persons.
According to Wainaina (2012), teledensity is known as an index of telephone lines, indicating a country’s telephone availability expressed in terms of the number of main lines per 100 inhabitants. Additionally, density is a proxy for the degree of connectivity between network members. A fully connected network is one in which all members are connected to one another, and the network density is 1.0. (Wilde & Swatman, 1997).
Consumer Price Index
According to Osuagwu (2012), telecommunications and teledensity have a significant impact on the consumer price index, CPI, which measures the general price of goods and services. Additionally, he said that the advantages of embracing technology include the fact that it expands the market and democratizes access for consumers and producers alike. Osotimehin et al. (2010) added that since telecommunications and teledensity significantly increase efficiency and the growth rate of GDP or GDP per capita, their immediate effect on CPI is visible. According to Onakoya, Tella, and Osoba (2012), since technology facilitates knowledge exchange, storage, and retrieval among economic actors, industries, and sectors of the economy, an economy’s CPI declines over time in comparison to the preadoption period.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
According to Nnadozie, E.O. (1998:42) designing a descriptive research involves planning the procedures to be used in data collection. This will include developing the necessary instruments and determining the sample to be used for the study. In view of the study the researcher used the survey research design in the study and based on that, random sampling was used and conclusions were drawn.
POPULATION AND SAMPLE SIZE TECHNIQUE
The population of the study includes all the public servants within and outside Enugu, government officials (politicians), unemployed graduates and undergraduates self employed graduates etc. For this study, a very small sample was selected such that N =Z2 x (1-p) (p) /e2.
CHAPTER FOUR
DATA PRESNTATION, ANALYSIS AND INTERPRETATION
In reference to the previous chapter, it indicates that a total of 196 questionnaires were distributed and only 123 questionnaires were duly completed and returned. By implication, 73 were not returned and therefore, we shall base our analysis on the 123 questionnaires returned.
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
SUMMARY OF FINDINGS
To a reasonable extent, this study has investigated the impact of deregulation of telecommunication sector on economy of Nigeria. Based on the study above, there were evidences that deregulation has an effect on poverty situation in Nigeria either negative or positive. From the result of the study, the following were found; at the beginning, the majority of the respondents were aware that government is selling their shares in the telecommunication sector to private individuals and supported that government should deregulate some of our telecommunication sector. They supported their views with the corrupt practices that were going on in the telecommunication sector which made telecommunication sector in Nigeria inefficient and unable to meet people’s expectations.
CONCLUSION
As already argued, deregulation has a potentially high impact on poverty alleviation. In light of this potential link, deregulation should be adequately integrated as a core part of any poverty alleviation strategy. Whatever the objective of the programme, it is important to take not of the concerns of the poor and where necessary, adequate measures be put in place to guarantee that in the end, the benefits of deregulation will reach the poor. If deregulation is carried out with sincerity of purpose, almost every group will come out and accept the result of divestiture. Workers will be shareholders, while consumers will be better off because of better services. New graduates and the unemployed will get jobs because of expansion and government will be relieved of the burden of subsidies. Similarly, investors will gain investment opportunities, and ultimately, the public will be free to pursue any private economic interest relating to the deregulated industry. In conclusion, if deregulation must be of necessity and bring forth the desired benefits, it has to be viewed not as an end itself, but as a means to get government interested in fostering a new division of labour between the public and private sectors.
REFERENCES
- Ayodele, S. (1988). Deregulation and Commercialization of Telecommunication sector and their Implication. In Adedotun P. (ed.) Economic Policy and Development in Nigeria.
- Ibadan, Nigeria, Nigeria Institute of Economic Research Ibadan.
- Bala, J.J. (2004). The Nigeria Deregulation Programme: Strategies and Timelines, 2003 – 2007. NESG Policy Dialogue Seires, 3(2), 11 – 28.
- Anyanwu, C.M. (1999). An Analysis of Nigerian Deregulation Programme, 1988 – 1993: Lesson of Experience. CBN Bullion, 3(3), 37 – 38.
- Chambers, B. (2008). A Critical Appraisal of Deregulation in Nigeria. Online available at: http://www.hg.org/ article.asp?id=5491.
- Cowan, L.G. (1987). Global Overview of Deregulation. In S.H. Hanke (ed.). Deregulation and Development (7 – 15). Publication of the International Centre for Economic Growth California: ICS Press.
- Elias, A. (2001). The Performance of Deregulated Firms in Nigeria. In D. Mahamoud (ed.). Deregulation and Economy of Nigeria. Online availableat:
- http://www.odi.org.uk/events/2004/06/16/32_background–paper_danjumamahamoud–deregulation–poverty–reduction–in–Nigeria.
- Igbuzor, O. (2003). Deregulation in Nigeria: Critical Issues of concern to civil society.
- Online available at: http://www.dawodu.com/otive2.html.
- Jerome, A. (1999). Telecommunication sector Reform in Nigeria: Expectations, Illusion and Reality. In A. Ayo (ed.). Economic Reform and Macroeconomic management in Nigeria. Ibadan: Univeristy of Ibadan Press.
- Jerome, A. (2008). Deregulation and Enterprise Performance in Nigeria: Case study of some Deregulated Enterprises. Online available at: http:///www.aercafrica.org/documents.
- Mahmoud, D. (2004). Deregulation and Economy of Nigeria. Online available at: http://www.odi.org.uk/ events/2004/06/1632-background-paper_danjumamahmoud-privatizatiton-poverty-reduction-Nigeria.
