The Role of Information Technology in Nigerian Economy

European Scientific Journal, 2014

The study analyses an impact relationship of Information and Communication Technology (ICT) on Bank Performance and Economic Growth in Nigeria. The study obtained an annual data of selected commercial banks in Nigeria for an 11 years period i.e. 2001-2011. The data comprises of net profit, total assets, total equity, ATM machines including e-banking services of the stated banks. The ordinary least squares (OLS), among the commonly used models in analysing panel data were used. Results of the study reveals that the use of ICT, from random effects model, does not improve bank performance in the Nigerian commercial banks. However, increased profitability, total equity showed significant relationships between bank performance and hence economic growth in the country. Similarly, a positive influence on bank performance is also revealed but is not statistically significant. The conclusion draws is that improved investment in ICT equipment does not improve bank performance. Rather relevant policies which could boost bank performance in term of profitability, capitalisation and consolidation should be pursued which are also the main determinants of economic growth.

Serbian Journal of Management, 2016

The study examines the effect of investment in telecommunication infrastructure on economic growth in Nigeria. Using time series data from 1980 and 2012, the study employs autoregressive distributed lag (ARDL) bounds testing approach proposed by Pesaran et al., (2001) to estimate the long run and short run effect of investment in telecommunication infrastructure on economic growth. The result from cointegration test showed presence of long run relationship between dependent and all explanatory variables. The study found foreign direct investment in information and communication technology more effective in improving and raising economic growth in Nigeria than government investment. The output from Chow breakpoint test shows that the liberalization of telecommunication industry introduced in 1992 has significant effect on economic growth in Nigeria. Therefore, it is imperative for Nigerian government to increase its spending on telecom and attract more foreign investment in telecommunication in order to boost productivity and economic growth.

The Information and Communication Technology (ICT) has been the major front-runner in addressing the needs and industries of low-income communities in countries likes Nigeria. However, it was in the last fifteen years that the awareness for the importance of the ICT's role in widening the economic break through was identified. Thus, this study examined the impact of ICT sector on economic growth in Nigeria using vector error correction model for the period 1981-2020. The data for the study were collected from National Bureau of statistic. The ADF test, Johansen Co-Integration Test and Vector Error correction model was used to test the stationarity, long run relationship and short run relationship between GDP and ICT sector. The results from the data analysis indicates that all the variables were not stationary; however, become stationary after first difference. The Johansen co-integration test result showed the existence of long run relationship between the GDP and ICT sector. The study also found that LNMPSRM has positive and significant effect on GDP, also LNTIS has negative and significant effect on GDP. The ECT coefficient of 0.251 indicates that a deviation from the long run equilibrium level of the contribution of ICT sector in one year is corrected by 25.1 percent over the following year. The Granger Causality result indicates a bi-directional relationship between LNMPSRM and LNGDP; and independent relationship between LNPUB, LNTIS, LNBRD and LNGDP. In order to ensure sustainable economic growth, the study recommends that Nigeria as a country should increase her investments in ICT sector as this will enable all the sub-sectors to contribute positively toward GDP of the Country.

Economic Research-Ekonomska Istraživanja

Africa is an emerging, frontier economy that is gradually becoming a gold miner of the fourth industrial revolution (industry 4.0) to achieve speedy economic growth and development. Through the transmission channel of technological drive that relies on the penetration of modern communication means (information and communication technology [I.C.T.]). It is on this basis that this study examines the performance of I.C.T., economic growth and development in Africa. In capturing I.C.T. performance; penetration of I.C.T. indicatorsmobile telephone, fixed-line telephone and Internet access subscriptions are used as measurements and reduced to a single index through principal components analysis (P.C.A.). Economic growth and development is measured with the real gross domestic product and the human development index (H.D.I.), respectively. The data for this study were sourced from the international telecommunication union (I.T.U.) and world development indicators from the World Bank databases. The results show that mobile telecommunication is growing faster than other telecommunication indicators and I.C.T. penetration has positive impacts on economic growth and development in Africa. The study, therefore, recommends that simultaneous investments are required in the fixed-line and Internet access telecommunications in Africa in order to fully tap into the optimal impetus of I.C.T. penetration for economic growth and development in Africa.

15th iSTEAMS Multidisciplinary Conference, Chrisland University Abeokuta, 2019

This paper explains the concept of Information and communication Technology (ICT), and its impacts in the Nigerian economy; with highlights on the merits of ICT in economic advancement as well as recommendations geared towards harnessing ICT for the overall development of the socioeconomic and political status of Nigeria. It is now widely accepted that Information and Communication Technologies (ICT) have an important role in national development, much of this state is due to lack of clarity on how ICT is conceptualized in this context. ICT is fast becoming the largest distribution platform for providing public and private facilities and services to millions of people .The value of information and accumulated knowledge within the country is therefore a strong point for national economic growth. In this paper, we attempt to further clarify how ICT is conceptualized in development and its impact on the economy of the nation.

This paper explores the economic value of ICT investment in Nigeria. Data were gathered from secondary sources after which different statistical packages were used to extract relevant information. Investigation revealed that ICT investment was on the increase from 2001 when the telecoms industry in Nigeria got their liberalization. The empirical results suggest that ICT investment has a significant impact on Nigeria‘s economic growth during the period reviewed, suggesting good payoffs from the investment. R-squared result shows that a high proportion (95%) of total change in GDP is accounted by private investment in ICT, ICT contribution to GDP and number of subscribers. ICT investments made by the private sector seem to have contributed significantly to the country’s growth. However, in order to sustain economic growth leveraged against ICT, more concerted efforts need to be made to increase ICT investment diffusion in the country. Such initiatives will ensure that the value potential of ICT investments in the economy is maximized, due to greater ICT-enabled potential that can translate to economic growth.

2011

This paper studies the impact of Information and Communication Technology (ICT) use on economic growth in different countries and regions of the world. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants) for 159 countries over the world. This study also finds that ICT use in the high income group has a higher effect on economic growth than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

NETNOMICS: Economic Research and Electronic Networking, 2019

This paper evaluates the impact of information and communication technology (ICT) on economic growth in Africa based on a sample of 54 countries from 2005 to 2015. The sample is further divided along five sub-regions and the outcomes measured by estimating pooled ordinary least squares, random and fixed effects and system generalised method of moments models. The ICT indicators are individuals using the internet, mobile subscribers and fixed telephone subscribers with trade openness and inflation rate as control variables. Findings, among others, reveal that: (1) ICT development has a statistically significant positive relationship with economic growth, (2) the output elasticities of the three ICT indicators are significantly different, (3) the “leapfrogging” hypothesis holds, (4) mobile subscription has the largest output elasticity across all specifications and has the biggest potentials to enable Africa to skip traditional developmental stages, (5) regressions for the sub-samples show statistically significant differences of the output elasticity of ICT indicators. The study recommends that concerted efforts must be directed towards harnessing the inherent benefits of ICT usage which includes reducing the rising cost attributable to the usage of communication technology facilities such as the cost of buying a cellular phone, internet connectivity rates, subscription rates and so on.

Journal of theoretical and applied information technology, 2012

This paper studies the impact of Information and Communication Technology (ICT) development on economic growth in different countries and regions of the world. The results indicate that there is a positive relationship between real GDP growth and ICT development (as measured by the ICT Development Index) for 153 countries over the world. This study also finds that ICT development in the upper-middle income group has a higher effect on economic growth than other countries. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT development.