Empirical Analysis of the Iimpact of Telecommunications on the GDP of Nigeria

Abstract

The importance of the telecommunication infrastructure cannot be overemphasized. The infrastructure promotes employment opportunities, improves services, create incentives for efficiency and reduces the burden on strained public resources. Though, there are several studies on this line of research, no knowledge is derived on the historical evolution of mobile communication. Therefore the present study will do that and then estimate the relationship between telecommunication infrastructure and economic growth in Nigeria from the period 2000-2016, employing both descriptive and econometric techniques. Findings from the study reveal that GSM has contributed significantly to Nigeria’s economic growth whereas teledensity has contributed insignificantly to economic growth in Nigeria. Based on the empirical result, the study recommends government’s improvement of GSM operations in Nigeria through the provision of efficient regulatory framework and environment as well as more investment in the sector in terms of increase or improvement in the mobile line penetrations (teledensity) in Nigeria to enhance productivity and economic growth.