In Nigeria, You cannot talk about the information and communication technology (ICT) without mentioning the mobile telecommunication sector. According to Olusegun (2014) the information and communications technology sector has almost multiplied its contribution to Nigeria’s GDP in the last three years and is expected to be the main driver of economic growth. And the industry currently contributes 9.58 percent to GDP and is further enabling other parts of the economy (Kevin, 2014). The industry is also viewed to be soon as critical as another major sector of the economy, such as oil and gas and agricultural sector.
The emergence of ICT has brought a new era in communication revolution to Nigeria (Agba, Ikoh, Ushie, & Bassey, 2010). According to Agba (2010) the internet, mobile phone and computer which superseded up to this point used communication devices like cables and telegrams, have brought about a fundamental shift in patterns of communication and human relationships. Agba says these new technologies in communication satellites enable sound, pictures and messages, to reach target audience almost simultaneously. Agba also said it is possible to record messages, put away them, recover and use freely. Communication revolution has brought about amazing social, economic, cultural and psychological transformation (Ogaboh, Moses & Bassey, 2010).
All these are due to Nigerian telecom sector that has become one of the fastest growing telecom markets in the world, drawing in significant foreign direct investment (FDI). But as much as this development has positively affected the life of many people in the country, there are concerns in some criminal activities affecting the economy negatively. Such as an increase in examination malpractices, access to pornography, fraudulent messages, trading of fake technologies and other negative outcomes that have, and could also result from the growth of the mobile telecommunication sector. Such concerns have been witnessed not only in Nigeria but all over the world as well. The Nigerian government has made efforts, such as forming of an organization known as, Economic and Financial Crime Commission (EFCC) and other smaller organizations, and empowering them with tackling all financial crimes, cyber crimes, and illegal online activities. Despite all this efforts by the government, there are occasionally reported cases in newspapers and articles concerning cyber crimes. Also, due to the nature of political status of the country, the telecommunication sector have been facing some challenges that tends to cost them a lot of money. The failure of the government to ensure adequate power supply and the high amount of tariffs charged by the operators in the telecom industry discourages multinational companies into investing in this sector of the country. For me creating an awareness is important. By letting the Nigerian government and the people know the kind of impact that has been felt, both positively and negatively, due to the increase in technology usage in the country, spearheaded by the rapid growth in the telecom sector, will go a long way in further improving economic situations for the better.
1.1 STATEMENT OF PROBLEM
Despite all the positive impact gotten from the growth of the Nigerian telecommunication sector, there have been so many factors that are hindering all the important contributions and services rendered by the sector to the country. The increase in foreign direct investment (FDI) that has enabled the overall development of the country is one of the most important contributions of the sector. Among the challenges being faced by the sector due to capacity constraint and infrastructural inadequacy are the poor power supply, insecurity, poor transportation, logistic problems, vandalism, corruption and political instability.
Since 1972 the Nigerian electric power authority (NEPA) now known as the power holding company of Nigeria (PHCN) has been a monopoly of federal owned electric utility body. Charged with the responsibility of generating, transmitting, distributing and selling electricity to everyone living Nigeria. But due to mismanagement, corruption, lack of adequate facilities and inadequate funding, the power sector has not been able to function properly. Which has resulted in mobile operators spending a lot of money on fuel in other to power there artificial or supplementary supply of electricity? It goes along in reducing the general performance of this sector because millions of dollars are spent and wasted unnecessarily due to lack of adequate power supply thereby discouraging investors.
What about transportation in Nigeria, the problems faced by the transportation sector is not due to lack of means such as trucks for transporting some technological items like mast for improvement of the signal in more of the rural areas, but the lack of good roads leading to this rural areas.
When we talk about corruption and political instability, there are no doubts that this is the leading cause of problems in the Nigerian economy. Due to corruption and bad leaders, the rate at which the country is supposed to develop is affected. All other problems mentioned above has their roots traced back to this particular problem. Billions of dollars are being embezzled every day by the leaders of the country thereby neglecting their civil duties to the masses by providing basic infrastructures needed for the telecommunication sector and other sectors of the economy to progress and function properly. These are also one of the reasons foreign investors get doubts shy away from investing in any sector of the economy for fear of the unknown.
The major source of income to Nigerian economy is petroleum. They produce 2.7% of the world's supply, making it African largest oil producer, but this hasn’t come without it own problems and disadvantages because the oil boom of the 1970s leads to Nigeria neglecting its strong Agricultural sector that was the major source of income before the discovery of crude oil. Nigeria as a country turned out to be excessively reliant on crude oil to the extent or degree that as at 2000 it accounted for more than 98% of export income and around 83% of government revenue thereby neglecting all other important sectors of the economy. It shows the dependent of the country on crude oil. But the growth of the mobile telecommunication sector has since been able to account for a little bit of income generated by the Nigerian economy.
It is also important to note that as much as there has been positive impact gotten from the telecommunication sector, there have also been some negative impacts that were mentioned briefly in the introduction sections, some of which are attributes of bad governance. This research is there for carried out to create awareness to the people Nigeria towards the great potentials the sector and also issues that should be tackled to enable this become a reality. Because a famous quote says '' Knowledge is power'' and ignorance is not an excuse.