Telecommunication Infrastructure and Economic Growth in Nigeria: An Investigation into a Causal Linkage.

Nwaogwugwu, I.C (2016)

Staff Publications

Article

The Nigerian Telecommunication industry has experienced tremendous growth since 2001 when it was privatised by permitting private investment into the sector that was hitherto, under the full control of the Public Sector. Such an unanticipated growth has manifested in the form of domestic and foreign capital inflow into the sector, as well as increased teledensity (spurred by Global System of Mobile Communications,GSM; fixed wired and wireless telephony); and different variants of data services. While the telecommunication sector is booming, it has also been observed that the Nigerian economy has also been recording an impressive GDP growth for equally a period of more than a decade. Hence, this study relying on Granger (J 969) Causality technique investigates whether there exists causality between telecommunication infrastructure and economic growth in Nigeria. Results obtained from the analysis shows that telecommunication infrastructure granger-causes economic growth in Nigeria. The reverse could not be validated by this study and thereby suggesting a one way or uni-direction causality relationship that flows from telecommunication infrastructure to economic growth. The government is therefore, advised to ensure a sustained investment into the telecommunication sector.