1.0 BACKGROUND OF THE STUDY
A more 100 years ago, people and news
traveled by sailing ship, so that it took months to communicate across various
part of the world. Advances in the first 60 years of the twentieth century
speed up both -communication and travel in the past three decades, the pace of
change in communication technology has accelerated.
The world has witnessed a,
communication revolution that has drastically changed the way business
decisions are made and implemented.
Three decades ago, telephone links
were laboriously and unreliably connected by operators, satellite were just being. discovered, photocopying and
telecopying were completely unknown, mail was the only way to send hard copy,
and getting it to overseas destination often took
weeks, computer were in their infancy, and jet were just beginning to replace
the much slower and less reliable propeller air craft.
Today/direct dialing is available to
most parts of the world, at a fraction of what long distance cells cost 30
years ago facsimile, satellite links, fast jet travel, computer networks, cheap
courier services, internet, E-mail, mobile cellular and a host of others have made communication reliable and often
instantaneously available through' out 'the world. This revolution in the
communication industry has been a major contribution to the development of what
has become known as the global village which Nigeria is still struggling to be
part of communication according to the Oxford Advanced Learners dictionary
(Special Price Edition) is the act of passing messages across, making things
known or expressing ones feeling through a means.
Effective communication, network is
the bedrock of any nation. Effective communication network is helps in speeding
up various economic activities such as trade, information network, security,
banking and other business transaction which has in all aided competition,
industrialization and improved technology which also increases the Gross
National product (GNP) of nations
communication also aids distributive,
channel, as it is a known fact that: production is not complete until goods and
services produced reached the final consumer. For- this to be accomplished good
and effective communication network is needed.
The Nigeria communication industry is
divided into 3 sub-sectors mainly, Nigeria telecommunication Limited (NITEL),
Nigeria postal service (NIPOST) Nigeria Mobile Telecommunication (M-tel) with a
regulatory body known as Nigeria Communication Commission (NCC all of which are
managed and controlled by Nigeria government.
The 1998 decree of October 25 on
privatization and commercialization of government establishment gave room for
the privatization and commercialization of government of which the Nigeria
communication industry is none.
Communication industry in Nigeria had
one of its sub-sectors commercialized that is, NITEL while all other sectors
such as NIPOST and NITEL were deregulated in 1992.
According to the decree,
privatization is the sale of, government owned share to the general Public' or
private sector while commercialization the removal of government subsidy in the
public sector so that such organization is left to operate as profit making
organization, recently the NITEL, and M-TEL, which are sub-sectors of the
communication industry in Nigeria, is now being privatized.
The Nigeria telecommunication Limited
(NITEL) is a public telecommunication operator it's responsibilities include,
providing basic network facilities to- all, parts of the' country, and administering the national network;
and carrying on functions of national carrier .
Other services include facsimile and
other high speed network.
The Nigeria Mobile Communication
Limited (M-TEL) which was caved out of NITEL
in 1996 [provided only mobile telephone
The Nigeria Postal Services (NIPOST)
is a national carrier of all classes of mail
items for delivery b6th within and outside
Nigeria. i Other services provided include courier service and retailing, Advertisement
using bill board, Agency Services, offering of central workshop etc Lastly,
Nigeria Communication Commission (Nee).
This body regulates the activities of
Nigeria communication industry.
being a facilitator of economic development has slow manifestation on the
Nigeria economy. This is due to the problem being faced by the government in
the industry and this include foreign exchange constraint poor management of
available infrastructures, poor network distribution and poor management of the
sector and under capacity. The Nigeria communication industry add to its credit
700,000 installed capacity out of
which 450,00 lines are connected, this
is below the recommended teledensity of act
lease I telephone to a hundred people,
This implies that with a population of
about 120 million people needs to provide at least 1.2 million telephone
lines out of which 0.45 teledensity has been provided. This means that 700,000 more liens at lease
is required to meet the required it’s recommendation, it is in this bid that
the Nigeria government has adopted for privatization of telecommunication
sector of the communication industry.
1.1 STATEMENT OF PROBLEM
Communication network is no doubt a facilitator in
economic development, but certainly it has slow manifestation on the Nigeria
economy, the need to accelerated to meet the recommended ITU minimum of one
telephone per 100 person is now of primary concern for all developing nations
like Nigeria, to accelerate pace of development there is need to identify
factors that has necessitated the slow pace of development.
1.2 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to appraise the contribution of
communication sector in the economic development in Nigeria with the following
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.
1.3 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
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
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.
the telecommunication industry in Nigeria will not enhance economic
HA: privatizing the telecommunication
industry in Nigeria will enhance economic development.
Ho: The government has failed in the
management of communication industry.
HA: The government has succeeded in the
management of communication industry.
Ho: Communication network is a catalyst
to economic development in Nigeria?
HA: Communication network is not catalyst to economic development in Nigeria?
1.5 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.
1.6 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.
1.7 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
1.8 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
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.
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
1.9 PLANT 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
Chapter two will comprise of general
literature review on communication and privatization from secondary sources of
Chapter three comprise of historical
background of Nigeria telecommunication sector, its role, role of privatization
in the telecommunication industry. The Nigeria telecommunication as it affects private investors, the role of private
investors in the industry, an overview of privatization in Nigeria, operations
of intracellular Nigeria limited and comparison between government owned
telecommunication and private telecommunication.
Chapter four will comprise data
presentation, analysis and evaluation of the performance of intercellular
Nigeria limited. Lastly chapter Jive will entail findings, solution, conclusion
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