AN ASSESSMENT OF THE COMMUNICATION SECTOR’S ROLE IN PROMOTING ECONOMIC DEVELOPMENT IN NIGERIA

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Over a century ago, the movement of people and information relied heavily on sailing ships, which meant that communication across distant regions of the world could take several months. However, significant technological advancements, particularly during the first six decades of the twentieth century, greatly accelerated both communication and transportation. In the last three decades, the pace of development in communication technology has further intensified, triggering a global revolution in how information is exchanged and business decisions are made and executed. Three decades ago, the global communication infrastructure was rudimentary by today’s standards. Telephone connections were manually operated and often unreliable, satellites were still in early development, and photocopying or faxing were virtually nonexistent. Physical mail was the primary method for sending documents, and international delivery could take weeks. Computers were in their infancy, and jet aircraft had only recently begun replacing slower and less dependable propeller planes. Today, the landscape has transformed dramatically. Direct international dialing is available at a fraction of the cost compared to 30 years ago, while facsimile machines, satellite links, high-speed jet travel, computer networks, affordable courier services, the internet, e-mail, and mobile cellular technology have made global communication virtually instantaneous and highly reliable. This transformation within the communication sector has been pivotal to the development of what is now referred to as the “global village”—a dynamic that Nigeria continues to strive to fully participate in. Communication, as defined by the Oxford Advanced Learner’s Dictionary (Special Price Edition), is the act of conveying messages, making information known, or expressing thoughts and emotions through various mediums. A robust communication network is foundational to the development of any nation. It accelerates economic activities such as trade, information sharing, security coordination, banking, and business transactions, thereby enhancing competitiveness, industrialization, and technological advancement, all of which contribute significantly to a nation’s Gross National Product (GNP). Moreover, communication supports distribution networks, since production cannot be deemed complete until goods and services reach end-users. Achieving this requires a reliable and efficient communication system. In Nigeria, the communication industry is segmented into three main sub-sectors: the Nigerian Telecommunications Limited (NITEL), the Nigerian Postal Services (NIPOST), and the Nigerian Mobile Telecommunications (M-TEL), all overseen by the regulatory authority—the Nigerian Communications Commission (NCC). Historically, all these agencies were managed and owned by the government. However, following the enactment of the privatization and commercialization decree on October 25, 1998, the communication sector was opened to private investment and competition. This policy shift allowed for NITEL to be commercialized, while NIPOST and M-TEL were deregulated in 1992. Under this reform, privatization refers to the sale of government-owned shares to the public or private entities, while commercialization implies the removal of government subsidies, thus enabling such enterprises to operate as profit-driven organizations. More recently, both NITEL and M-TEL have undergone privatization processes. NITEL, as the national telecommunications provider, is responsible for ensuring the provision of basic telecommunication infrastructure across the country. It serves as the national carrier and provides services such as facsimile and high-speed networking. M-TEL, which was carved out of NITEL in 1996, focuses exclusively on mobile telephony. Meanwhile, NIPOST remains the national mail carrier, delivering various classes of mail within and outside Nigeria. It also provides courier services, billboard advertising, retailing, agency services, and central workshop functions. Lastly, the Nigerian Communications Commission (NCC) continues to regulate the activities of all communication service providers. Despite the crucial role communication plays in facilitating economic growth, the sector has experienced slow impact on Nigeria’s broader economic development. Several challenges hinder progress, including foreign exchange constraints, inadequate management of infrastructure, limited network coverage, poor sectoral governance, and general undercapacity. For instance, the Nigerian communication sector has an installed telephone capacity of approximately 700,000 lines, but only about 450,000 are actively connected. This figure falls short of the International Telecommunication Union’s (ITU) recommended teledensity of at least one telephone line per 100 persons. Given Nigeria’s population of roughly 120 million people, the country would require a minimum of 1.2 million functional telephone lines to meet this standard. The current teledensity of 0.45 is far below this threshold, indicating that an additional 700,000 lines are necessary to bridge the gap. This shortfall has prompted the Nigerian government to embrace the privatization of the telecommunications segment of the communication sector as a strategy for boosting capacity and service delivery. 1.2 Statement of the Problem While communication infrastructure is universally recognized as a vital catalyst for economic development, its impact on Nigeria’s economy has been relatively limited. The slow progress of the sector has become a pressing concern, particularly as developing nations like Nigeria seek to meet the ITU’s minimum standard of one telephone line per 100 people. To accelerate national development, it is imperative to investigate and address the factors responsible for the slow growth of Nigeria’s communication infrastructure. Identifying these underlying challenges—ranging from systemic inefficiencies and policy shortcomings to infrastructural deficits and financial constraints—is essential for designing effective interventions that can enhance communication services and, by extension, contribute to Nigeria’s socio-economic development. 1.3     AIM AND OBJECTIVES OF THE STUDY The aim of this study is to appraise the Communication Sector’s Role in Promoting Economic Development in Nigeria with the following objectives; i.        To evaluate the problems faced by government in the management of the communication industry. ii.       To examine the prospect of private investors in the industry. ", iii.      To suggest solutions to the problem facing both government and private investors in the industry. iv.     To evaluate the' role of the communication industry in economic development. 1.4 RESEARCH QUESTIONS i.What are the problems faced by government in the management of the communication industry? ii. What is the prospect of private investors in the industry? iii. What are the solutions to the problem facing both government and private investors in the industry? iv.What is the' role of the communication industry in economic development?. 1.5     HYPOTHESIS HYPOTHESIS I Ho;   privatizing the telecommunication industry in Nigeria will not enhance economic development. HA:    privatizing the telecommunication industry in Nigeria will enhance economic development. HYPOTHESIS II Ho:   The government has failed in the management of communication industry. HA:    The government has succeeded in the management of communication industry. HYPOTHESIS III Ho:   Communication network is a catalyst to economic development in Nigeria HA: Communication network is not catalyst to economic development in Nigeria 1.6    SIGNIFICANCE OF THE STUDY The research work is meant for the people, government and it's agencies and international community. A lot of people are not aware of what privatization itself entails. They are also not aware of what is happening in the communication industry as it affects economic development and the effect of privatization of the communication industry on economic development of the country. But however, by the completion of this research work, people will be aware of all these and will be adequately informed. To the government, it will enable them see the problems affecting them and private sector in the communication industry and this will help them in policy for this research will give them an insight as to how' to be informed. And finally, to the international institution, this research will give them an insight as to how the Nigerian government intends to privatize the communication industry to move towards globalization. And 'also it makes, them in coining to' invest ill the Nigerian communication industry. 1.7   METHOD OF RESEARCH The research method adopted in the course of this study is the secondary source of data.  This implies the use of published texts, journals, seminar and other relevant literatures. Primary data such as the use of questionnaires and personal interview is adopted, data gathered for this research work is analysed using the inferential method i.e. chi-square technique. This technique has been chosen since it is the best method to test relationship descriptive method is also adopted as in the use of percentages. Data gathered for this research work will be classified into response from private investors (intercellular) customers and Nitel staffs. 1.8    SCOPE OF THE STUDY The scope of this research work will cover the operations of the Nigerian communication industry in the face of government operation and also private participation. This research work has been limited to the Telecommunication aspect of communication industry since it is the only sector-being stated for privatization. However, this is not to say that all other aspect of communication is neglected completely. 1.9     LIMITATION OF THE STUDY The limitation of this research work is also based on the fact that the communication industry in Nigeria has been a government parastatal and this has probably been the reason why there are not much write up on the subject matter. The movement of the government establishment from Lagos to Abuja has also hindered the effectiveness of this research work. 1.10     DEFINITION OF THE TERMS COMMUNICATION: Is the act of making things known or passing messages across through a means. PRIVATIZE: To sell an organization industry or service that was previously owned controlled by a government. TELECOMMUNICATION: the process or business of sending and receiving message by telephone, ratio and television. MOBILE PHONE: A phone that you can carry with you and use in anyplace. FACSIMILE: An exact copy of a picture, pieces of writing formal a (FAX). SATELLITE: A machine that has been sent into space and goes around the Earth, Moon etc used for radio, television and others electronic communication. PHOTOCOPY:. To make .a photographic copy, especially of something printed, written or drawn. E-MAIL:  A system that allows people to, send messages to each other by computer. NIPOST: Nigeria postal service is a national carriers of all classes of mail items for delivery both within and outside Nigeria. NITEL: Nigeria telecommunication Limited IS a public telecommunication operator it's provide basic network facilities to all part of the country e.g. facsimile and the high speed network. 1.11     PLAN OF THE STUDY This research work will be divided into five chapters. Chapter one will comprise of the general introduction and also problem of the study, aims and objectives of the study, significant of study, hypothesis, method of research, scope of study, limitation of study, definition of terms and plan of study. Chapter two will comprise of general literature review on communication and privatization from secondary sources of data. Chapter three will comprise of research methodology, Chapter four will comprise data presentation, analysis and evaluation of the performance of intercellular Nigeria limited. Lastly chapter Jive will entail findings, solution, conclusion and recommendations.