Abstract:
This research analyses communication FDI and its effect on the development of Nigerian telecommunication industry. The 1999 deregulation introduced the presence of ‘umbrella people’ in almost every corner of the streets, express-roads, pathways in many suburbs and towns across Nigeria. Today, Nigerian economy is one of the targeted countries by multinational telecommunication industries due to its ready market, population size, and growing economy. This research is an ‘ex-pesto’ because it is an evaluation research on FDI and communication sector, but the focus is on the telecommunication subsector.
The hypotheses were to analyse the significant benefit from Nigerian labour market to the international GSM operators. Also, the relationship between Nigerian increased paid-up capital and the multinational GSM operations, and the effect of the mobile penetration and the growth of the teledensity
in the host communities.
The study is confined to the MTN Nigeria and Zain Nigeria, the two major GSM mobile operators in Enugu state. Most of the population in Enugu urban is subscribers to these.
The instrumentation used is structured questionnaire constructed into fixed alternative questions with inter-rater scale and personal interview. The secondary data is the recorded data in the CBN annual statistical bulletin 2005, FOS report 2005, and retrieved data from selected websites, journals, and textbooks. A probability sampling with random technique is used. This employed a stratified random sampling. The sample size is 108 units. The validated instrument, which is the fact-finding package, was distributed and collected from the selected respondents on the two different periods based on cross-sectional method. The test retest is used to measure the variables stated in both the statement of research problem, research questions and the hypotheses. The statistical tools used are chi-square(X2), Pearson’s contingency coefficient, and Yates’ correction formula.
From the field surveying, HO was rejected in the three hypotheses tested. The significance shown that X2–value calculated are greater than X2-value critical except in seven items of the questionnaires. For instance in the analysis, 37% of the respondents believed that whether Nigerians are gaining or not, these international GSM investors are benefiting more in terms of capital flight, tax waivers, labour concession, etc
In concluding, the recommendation is that the foreign contact should be encouraged in the development of telecommunication in less developed countries like Nigeria but, there will be the need to check on the capital flight, and the standard of their services should be of international quality.
