Impact of Teledensity on Gross Domestic Product in Nigeria

Authors: *Adenodi R. A., Ojo O. L., Kolebaje O. T. and Akinyemi P.

Teledensity is the number of telephone connections for every hundred individual living in a country. It has significant correlation to economic growth and the Gross Domestic Product (GDP) of the country. This study aims at assessing the growth of teledensity and its contribution to GDP since its introduction in Nigeria in 2001. Teledensity data covering a period of forty four months reveals its steady growth. Also the growth in percentage contributions of teledensity to GDP for a period of thirteen years shows that telecommunication has significant impacts on the nation economics. However, the growth in installed capacity of the telecommunication infrastructure is stunted and does not commensurable with growth in teledensity. This is responsible for all forms of call failure that customers experience. All telecommunication companies must increase their installed capacity on a regular basis to ensure customers have value for their money. This will further increase the percentage contribution of teledensity to GDP and the acceptability of the operators.