Telecommunication Privatization in Nigeria
The Challenges of Telecommunication Privatization in Nigeria
In the 1990s, many multinational nongovernment agencies (such as: the IMF) encouraged the privatization of state owned entities in favor of privatization. The basic idea was to encourage these organizations to become more efficient, attract large amounts of working capital and to be more responsive to the needs of stakeholders. In Nigeria, this was touted as a solution for effectively dealing with inefficiencies impacting the telecommunications sector to include: corruption and the inability to modernize. This is having a positive impact on the telecommunications firms and consumers. Evidence of this can be seen with that fact that more people have access to these services and new technology (Anderian 2005) (Etieyibo 2011) (Dahlan 2009)
However, more improvement is needed in addressing critical problems. Most notably: effective strategies for leveling the playing field among carriers, better approaches for regulating the sector and innovative solutions for managing growth / maintaining a balance between governmental / privatized entities. This is useful in showing the positive benefits from the privatization of Nigerian telecommunication companies. It is also illustrating immediate challenges that must be addressed and solutions for dealing with these issues. These factors are highlighting the strengths and weaknesses of privatization over long-term and the best strategies for enacting positive changes. Yet, despite these benefits criticisms continue to mount. This research study will focus on these issues and how they can be addressed over the long-term. (Obo 2012) (Dahlan 2009)
Literature Review
The literature review is illustrating new challenges from the privatization of the industry. At the same time, it is highlighting potential areas where more investigation needs to be conducted in order to understand the overall scope of the problems and create workable solutions. That can address these issues and ensure an efficient model is created in the process. It is at this point when new strategies can be introduced to enhance the current approach.
One of the biggest challenges impacting privatization inside the Nigerian telecommunication industry is the lack of support among the general population and there are no social practices which are encouraging its development. According to Etieyibo (2011), this making the sector dysfunctional by having no model to work off of that is taking into consideration the needs of different stakeholders. This leads to various abuses and it increases corruption on the corporate level. It is also illustrating the challenges of making adjustments from a state sponsored monopoly based upon the industry's performance. (Etieyibo 2011)
Moreover, Chittoo (2010) came to similar kinds of conclusions in reference to the long distance carriers and their ability to privatize. This is because they were traditionally a monopoly and the public supported these kinds of structures. The challenges they are facing is many institutions are creating shifts in how they deal with customers and if society is in favor of these transformations. To create a more effective entity requires that reforms must occur inside the public sector and socially through liberalization / privatization. This is supporting Etieyibo's definition by offering enhancing views of the problems and the best ways to deal with them. (Chittoo 2010)
This information is highlighting gaps in the research to include: few studies that are dealing with characteristics of privatizing the telecommunication industries in Nigeria and how no single model has been found to support the best practices. At the same time, it is illustrating the different propositions of the study. Most notably: the problems Nigerian telecommunications…
Sample Source(s) Used
References
Anderian, A, 2005, 'Nigeria's Telecommunication Industry', Proceedings of the Sixth Engineering Conference, Port Harcourt, pp. 84 -- 93.
Chittoo, H, 2010, 'The Promises and Challenges of Privatization', Global Journal of Business Management and Research, vol. 10, no. 2, pp. 171 -- 175.
Dahlan, A, 2009, The Critical Success Factors, PHD Thesis, Southern Cross University.
Etieyibo, E, 2011, The Ethics of Government Privatization in Nigeria. PHD Thesis, University of Alberta.
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