Economic Evolution of The Nigerian Telecommunication Industry:Emne’s and Downstream Value Chain Transmission

Abstract

Recent developments in the Nigerian telecommunication industry have significantly been attracting multinational investors from emerging markets into the country, especially from African and Asian countries. This has led to massive influx of investors into the country’s Global System for Mobile (GSM) communications market since 2001. This paper investigates the value chain effect of these developments on the telecommunications sector of the Nigerian economy. There is focus on the industry itself, subsidiary industries as well as the downstream value chain creation arising from the influx of emerging markets multinational enterprises (EMNEs) into the sector. Using basic statistical techniques, the study finds that the entrance of the multinational investors into the industry following the market liberalization policy of 1999 has not only created a vibrant telecommunications market but also enhanced the value chain on the Nigerian economy at large. The findings of this study provide further insight into the value chain creation debate as it concerns the telecommunications industry not just in Nigeria but in countries of similar economic stature and structure. Additionally, the findings are important to the regulators and policy makers in developed and developing economies alike, for evidence-based policies.