A Correlational and descriptive study on the economic effect of telecommunication industry in Nigeria

Given Nigeria’s continued preference for telecommunications services and a rise in teledensity, the Nigerian economy remains plagued by low growth, high unemployment, and high business costs and it is against this context, that this study used a dynamic descriptive analysis with the help of the covariance correlation technique to examine the economic effect of telecommunication industry in Nigeria. Empirical investigations on the effect of telecommunication industries operations in Nigeria were conducted based on the concerns raised in the literature review. Results showed that the percentage contribution of telecommunication to GDP, teledensity, and the Consumer Price Index positively influence the Nigerian economy more than foreign direct investment, while manufacturing value added negatively influences the Nigerian economy. The study concluded that, in order to achieve high and sustainable growth, governments and telecommunication industry stakeholders should closely monitor the trend of telecommunication, teledensity, and economic growth in order to formulate and implement policies that will checkmate the downward trend that causes economic growth distortions, and that policy formulations in the midst of other internal and external macro-economic shocks.