Privatization the Case of Nigerian Telecommunication Limited Nitel

Privatization

This study seeks to examine and determine the role of the government agencies in the situation of Nigerian telecommunications limited which is on the verge of collapse. The company has great infrastructure and the market has a lot of opportunities that can sustain several players yet it has been unable to sustain itself and has instead incurred debts amounting to millions of dollars. The purpose of this research is to explore if privatization of Nigerian telecommunications (NITEL) would or can facilitate the country to triumph over these difficulties. Findings from the study reveals that the issues affecting the company are many including its lack of profit, in ability to pay its staff and other debts.

Introduction

The recent deregulation of the mobile phone market in Nigeria has led to the entrants of new players in the telecommunication market. The market was predominantly dominated by the government owned NITEL through a monopoly that has now recently ended. The number of telecommunication services users in Nigeria has also grown in large numbers. Telecommunication has obvious as well as important role to play in enhancing economic growth in the Nigeria. The Nigerian telecommunication market is regulated by the Nigerian Communications Commission which oversees the business on behalf of the government (Information gatekeepers, Inc., 1990).

However, to achieve the desired growth the telecommunication infrastructure also requires to be developed. The tools used for communication such as telephones, personal computers and the internet have shown to have critical role in the growth of the economies through enhancing individual growth and economic development. The Federal Government of Nigeria has recently put in place commendable policies that have facilitated some of the changes that have been experienced in the telecommunications market. The objective of these policies is to expand and modernize the telecommunications systems and services in Nigeria. As a result the government aims at achieving both social and economic growth in Nigeria through an integrated communications network that has both internal and external linkages. The purpose of this research is to bridge the research gap on Privatization of Nigerian telecommunication (NITEL Plc) and its commendable policies to expand and modernize the telecommunications systems and services in Nigeria, and present an insight of the challenges facing NITEL as a company. The rest of this paper is structured as follows: a review of the literature on the Privatization Proceeds and the regulatory practices in Nigeria is first presented in order to highlight the paper's research questions. The paper then presents an account of the institutional context and background of the study, by examining the state of Privatizing in Nigeria, evolving system, issues and challenges, including relevant references to certain historical dimensions. Following on, the research methodology and the findings will be discussed, which precedes the conclusions and final remarks.

Background of study