Public enterprise reform in Nigeria: Evidence from the telecommunications industry
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Date
2002-03-28
Authors
Afeikhena Jerome
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
This study examines the qualitative and quantitative evidence relating to allocative and
productive efficiency in the publicly owned Nigerian Telecommunications Limited
(NITEL) in the wake of its commercialization and the deregulation in 1992. Estimates of
changes in internal efficiency using total factor productivity analysis suggest a substantial
improvement in efficiency as a result of the regime shift. Furthermore, the reform
undertaken resulted in increased profitability, network expansion and modernization of
telecommunications services. However, the momentum generated by reform has proved
impossible to sustain. The industry is still characterized by under-investment and large
unmet demand. The study recommends greater private sector participation in the delivery
of telecommunications services in Nigeria, the introduction of competition in the sector,
and the strengthening of ongoing reform efforts to embrace full privatization of NITEL
with a view to overcoming protracted constraints on telecommunications performance
and growth.
Description
HC 800 .A1
Keywords
telecommunication Nigeria , Government business enterprise - Nigeria , Nigeria Telecommunication limited