Enhancing Nigerian Economy Through Wireless Internet Network

Project and Seminar Material for Computer Science Education

Enhancing Nigerian Economy Through Wireless Internet Network

Chapter One


The past 15 years have brought an unprece­dented increase in access to telephone serv­ices. This growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper rollout of mobile networks.

The total number of mobile phones in the world surpassed the number of fixed-line telephones in 2002; by the end of 2008, there were an estimated four billion mobile phones globally (Wireless Intelligence, 2008)1. The proportion of mobile phone subscriptions in developing countries increased from about 30% of the world total in 2000 to more than 50% in 2004 – and to almost 70% in 2007.

No technology has ever spread faster around the world (The Economist, 2008). The intro­duction of competition in the mobile telephony market has often led to an immediate growth of mobile penetration (Figure 1). Countries that have taken decisive steps to establish in­dependent regulators and foster competition have seen notable improvements in sector per­formance. In some cases, the announcement of a plan to issue a new license has been effective in triggering growth, encouraging the existing mobile phone operator to improve service, reduce prices, and increase market penetration before the new entrant started operations.

In recent years, steep price reductions (Figure 2), driven by technological advances, market growth, and increased competition, have contributed to the rapid expansion in mobile phone use in many countries. Increased use of prepaid services allows mobile customers to make payments in small amounts instead of having to commit to fixed monthly subscriptions. For those who could not afford their own handsets, small loans were made available, mainly to the rural poor, to enable them to buy a mobile handset, an antenna and a large battery.

This gave enterprising individuals an opportunity to rent phones to other villagers and charge for calls (The Economist, 2009). Furthermore, prepaid cards, often available in small denominations, enable even low-income consumers to have access to mobile communications, leading to higher penetration rates in poor and rural areas

1.1 Background of the Study

In the past few years, several macroeconomic studies have suggested a link between mobile phones and economic growth (The Economist, 2009). Sridhar and Sridhar (2004) investigate the relationship between telecommunications and the economic growth using data from 28 developing countries. The study finds that there is a positive impact of fixed lines and a significant impact of mobile phone penetration on national output. The impact of telecommunications penetration on total output is found to be significantly higher for developing countries than for OECD countries.

Waverman et al ii(2005) have found that mobile telephony has a positive and significant impact on economic growth. Extra 10 mobile phones per 100 people in a typical developing country added 0.6 percentage points of growth in GDP per capita, and this impact is about twice as large in developing countries than in developed countries. The results concur with the theory that mobile phones in less developed economies are playing the same crucial role that fixed te­lephony played in the richer economies in the 1970s and 1980s. Mobile phones substitute for fixed lines in poor countries, but complement fixed lines in rich countries, implying that they have a stronger growth impact in poor countries.

Lee et al ii (2009) examine the effect of mobile phones on economic growth in Sub-Saharan Africa where a marked asymmetry has been ob­served between fixed line penetration and mo­bile telecommunications expansion (in favor of the latter).

The findings show that mobile cellular phone expansion is an important determinant of the economic growth rate in Sub-Saharan Africa. The contribution of mobile cellular phones to economic growth has been growing in the region, and the marginal impact of mobile telecommu­nication services is even greater in areas where fixed-line phones are rare. The research shall therefore investigate enhancing Nigerian economy through wireless internet network

1.2 Statement of the Problem

The advent and development of wireless internet have brought an unprecedented increase in access to telephone serv­ices. This growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper rollout of mobile networks. But how can this significant shift be made to propel developments in the economy; This research investigates enhancing Nigerian economy through wireless internet network.

1.3 Research Question

  1. What is the nature of wireless internet network?
  2. What is the significance of wireless internet network in enhancing Nigerian economy?

1.4 Objective of the Study

  1. To determine the nature of wireless internet network
  2. To determine the role of wireless internet network in enhancing the Nigerian economy

1.5 Significance of the Study

The study shall provide a theoretical and conceptual appraisal of wireless internet network and shall serve a reference point of information to IT consultants and professionals.

1.6 Statement of Hypothesis

  1. H0 Wireless internet network is not significantH1 Wireless internet network is significant
  2. H0 The level of wireless internet network is low
    H1 The level of wireless internet network is high
  3. H0 The impact of wireless internet network on the economy is low
    H1 The impact of wireless internet network on the economy is high

1.7 Scope of the Study

The study centers on appraising enhancing Nigerian economy through wireless internet network.

1.8 Definition of Terms

Wireless Internet Networks:

The unprecedented increase in access to telephone services growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper roll out of mobile networks.

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Frequently Asked Questions (FAQ)

What is the concept of enhancing the Nigerian economy through wireless internet network?

  • Enhancing the Nigerian economy through a wireless internet network refers to the idea of utilizing wireless technology to provide widespread internet access throughout Nigeria. By improving internet connectivity and accessibility across the country, it aims to stimulate economic growth, promote digital inclusion, and enable innovation and entrepreneurship.

How does wireless internet network contribute to economic enhancement?

Wireless internet networks play a significant role in economic enhancement by facilitating several key factors:

  • Access to Information and Communication: Improved internet connectivity allows businesses, entrepreneurs, and individuals to access a wealth of information, communicate more effectively, and engage in online activities such as e-commerce, remote work, and online education.
  • Digital Economy: A robust wireless internet network enables the growth of the digital economy, including sectors such as e-commerce, online services, and digital entrepreneurship. It provides a platform for innovation, job creation, and the development of new business models.
  • Increased Productivity: Reliable wireless internet access empowers businesses and workers with efficient communication tools, cloud-based services, and collaborative platforms. This leads to increased productivity, streamlined operations, and cost savings.
  • Rural Development: Expanding wireless internet coverage to rural areas can bridge the digital divide, bringing economic opportunities to underserved communities. It enables farmers to access market information, promotes e-agriculture, and fosters rural entrepreneurship.
  • Technology Adoption: Reliable internet connectivity promotes the adoption of digital technologies, such as cloud computing, Internet of Things (IoT), and artificial intelligence (AI), which can enhance business processes, optimize resource utilization, and drive innovation.

What are the challenges in implementing a wireless internet network in Nigeria?

Implementing a wireless internet network in Nigeria faces several challenges, including:

  • Infrastructure: Building the necessary infrastructure, such as cell towers, base stations, and fiber-optic cables, requires significant investment and logistical planning, particularly in remote or underserved areas.
  • Affordability: Internet service affordability is a major hurdle in Nigeria. Many people, especially those in low-income communities, may not be able to afford the cost of internet access or the necessary devices to connect.
  • Power Supply: Reliable and uninterrupted power supply is crucial for maintaining wireless network infrastructure. Nigeria’s power infrastructure faces challenges, and alternative power sources or backup systems are required to ensure network availability during power outages.
  • Spectrum Allocation: Effective spectrum management and allocation are essential for optimizing wireless network performance. Ensuring proper spectrum allocation and mitigating interference requires coordination and regulatory efforts.
  • Digital Literacy: Enhancing the economy through wireless internet requires a digitally literate population. Promoting digital skills, training programs, and awareness campaigns is necessary to enable people to effectively utilize internet resources for economic growth.

What initiatives have been taken to enhance Nigeria’s economy through wireless internet network?

Several initiatives have been undertaken to enhance Nigeria’s economy through wireless internet networks. These include:

  • National Broadband Plan: The Nigerian government developed a National Broadband Plan aimed at increasing broadband penetration and coverage across the country. The plan sets targets for broadband access and outlines strategies for infrastructure development and regulatory reforms.
  • Public-Private Partnerships (PPPs): Collaboration between government agencies, telecommunications companies, and other stakeholders is crucial for expanding wireless internet networks. PPPs have been formed to invest in infrastructure development, extend coverage to underserved areas, and promote digital inclusion.
  • Internet Service Provider (ISP) Expansion: Efforts have been made to increase the number of ISPs operating in Nigeria, fostering competition, and driving down the cost of internet access. This has led to increased connectivity options for businesses and individuals.
  • Community Connectivity Initiatives: Non-governmental organizations (NGOs) and community-based initiatives have played a role in extending wireless internet access to underserved communities. These initiatives often involve setting up community networks, providing training, and promoting digital literacy.
  • Technology Hubs and Incubators: The establishment of technology hubs and incubators has created environments conducive to innovation, entrepreneurship, and digital skills development. These hubs provide infrastructure, mentorship, and networking opportunities to support tech startups and digital enterprises.

How can wireless internet network contribute to job creation in Nigeria?

Wireless internet networks can contribute to job creation in Nigeria in several ways:

  • Digital Entrepreneurship: Improved internet access enables the emergence of digital entrepreneurs who can start online businesses, offer digital services, or create innovative platforms. This fosters job creation and economic growth.
  • Remote Work: With reliable internet connectivity, more Nigerians can engage in remote work opportunities, providing services to companies and clients worldwide. This expands employment options beyond geographical boundaries.
  • E-commerce and Online Marketplaces: Access to wireless internet facilitates the growth of e-commerce platforms and online marketplaces. These platforms create job opportunities in logistics, customer support, marketing, and other related fields.
  • Technology and Telecom Industries: Expanding wireless internet networks boosts the technology and telecommunications sectors, creating jobs in areas such as network infrastructure deployment, maintenance, customer support, software development, and data analysis.
  • Digital Skills Training: Enhancing internet access encourages the development of digital skills among Nigerians. This increases employability in the digital economy and enables job creation in various technology-related fields.

How can the Nigerian government encourage the enhancement of the economy through wireless internet network?

The Nigerian government can encourage the enhancement of the economy through wireless internet networks by:

  • Policy and Regulatory Reforms: Implementing supportive policies and regulatory frameworks that promote investment in infrastructure, encourage competition, and ensure fair market practices.
  • Investment in Infrastructure: Allocating resources and partnering with private sector entities to expand and improve wireless internet infrastructure, especially in underserved areas and rural communities.
  • Digital Literacy Programs: Establishing programs to promote digital literacy, providing training and resources to enhance digital skills among the population, particularly in remote and disadvantaged communities.
  • Entrepreneurship Support: Offering incentives, funding, and support programs for digital entrepreneurship, start-ups, and small and medium-sized enterprises (SMEs) to foster innovation and job creation.
  • Collaboration with Stakeholders: Collaborating with telecommunications companies, NGOs, and other stakeholders to drive initiatives that extend wireless internet access, improve affordability, and promote digital inclusion.
  • Public-Private Partnerships: Forming partnerships with private sector organizations to jointly invest in infrastructure development, expand coverage, and bridge the digital divide.

What are the potential economic benefits of enhancing Nigeria’s economy through wireless internet networks?

Enhancing Nigeria’s economy through wireless internet networks can bring about various economic benefits, including:

  • Increased GDP: Improved internet access can contribute to increased economic activity, leading to higher Gross Domestic Product (GDP) growth.
  • Job Creation: Expanded connectivity and the growth of digital industries can create new job opportunities, reduce unemployment rates, and drive economic development.
  • Digital Entrepreneurship: Enhanced internet access enables the emergence of digital entrepreneurs, fostering innovation, and promoting the growth of new businesses.
  • E-commerce Growth: Widespread internet access facilitates the growth of e-commerce, opening up new markets, promoting trade, and boosting economic transactions.
  • Innovation and Knowledge Economy: Access to information and communication through wireless internet networks promotes knowledge sharing, innovation, and the development of a thriving digital economy.
  • Rural Development: Extending wireless internet coverage to rural areas can bring economic opportunities, improve agricultural practices, and enhance the overall standard of living in underserved communities.
  • Foreign Investment: A robust wireless internet network can attract foreign investment, particularly in sectors dependent on reliable connectivity, such as technology, outsourcing, and digital services.
  • Improved Government Services: Enhanced internet access enables the delivery of efficient and accessible government services, promoting transparency, accountability, and better public service delivery.

It’s important to note that the successful implementation of wireless internet networks and the realization of these economic benefits require a comprehensive and collaborative approach involving government, private sector entities, and civil society.


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