FOREIGN DIRECT INVESTMENT (FDI) IN TELECOMMUNICATIONS: THE SUCCESS STORY OF MTN IN NIGERIA

  • Type: Project
  • Department: Economics
  • Project ID: ECO0607
  • Access Fee: ₦5,000 ($14)
  • Pages: 15 Pages
  • Format: Microsoft Word
  • Views: 986
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853
Introduction
In 1999, one of the worst post-colonial dictatorship regime in Africa comes to a end.  Sani Abacha’s military ruling in Nigeria is overthrown and a transitional regime led by Olusegun Obasanjo is put into place. The country, touted in the 70’s as one of the potential success stories of Africa following the discovery of huge oil reserves and the building of decent infrastructure in cities such as Lagos and Port Harcourt, is in ruins.
Part of the challenge, second only to the need to restore the rule of laws, was to rebuild the country infrastructure. Very soon, it was obvious that the quicker fix could be done in the telecommunication sector, thanks to the introduction of advanced mobile technologies such as GSM, which reduces drastically the need of civil works compare to former fixed line technology. Hence, at the end of 1999, the Nigerian government announced their decision to offer 3 GSM licenses for a fixed price of 250 Millions US$ each.
Nigeria was (and still is today) a challenging environment for foreign companies willing to invest in what represent potentially the 2nd biggest market in Africa after South Africa. 
It is the most populated country in the continent (137 million people in 2003), with 50% of the population below 18 years and 60% living below the poverty line. Its religious and ethnic diversity (44% Muslims, 22% Christians, 34% Animists, over 250 ethnic groups) creates a fertile ground for internal conflicts.  The country is renowned for its flourishing scamming industry and its very high level of corruption (consistently rated by Transparency International in the 3 worst countries out of the 133 surveyed). Finally, the disastrous management of FDI in the oil sector created heavy resentment against expatriates, especially in the Delta Region.

TABLE OF CONTENTS
1 Introduction 3
2 MTN Success in Nigeria 5
2.1 MTN approach to investing in Nigeria 5
Strategy 5
Financial aspects 6
2.2 Results in March 2004 7
Sustainability of the results 8

3 Benefits of MTN’s investment to Nigeria 10
3.1 Economic Development 11
Job creation 11
Time and Expense Saving 12
Transparent Market Place 12
3.2 Social Development 12
Healthcare 12
Education and Knowledge Spillovers 13
Governance 14

4 Conclusion 14


TABLE OF FIGURES
Figure 3 1: An ICT Based Development Model: New Virtuous Circles 10
Figure 3 2: MTN Nigeria value chain 11



Share This
  • Type: Project
  • Department: Economics
  • Project ID: ECO0607
  • Access Fee: ₦5,000 ($14)
  • Pages: 15 Pages
  • Format: Microsoft Word
  • Views: 986
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Economics
    Project ID ECO0607
    Fee ₦5,000 ($14)
    No of Pages 15 Pages
    Format Microsoft Word

    Related Works

    Introduction In 1999, one of the worst post-colonial dictatorship regime in Africa comes to a end.  Sani Abacha’s military ruling in Nigeria is overthrown and a transitional regime led by Olusegun Obasanjo is put into place. The country, touted in the 70’s as one of the potential success stories of Africa following the discovery of huge oil... Continue Reading
    Introduction In 1999, one of the worst post-colonial dictatorship regime in Africa comes to a end. Sani Abacha’s military ruling in Nigeria is overthrown and a transitional regime led by Olusegun Obasanjo is put into place. The country, touted in the 70’s as one of the potential success stories of Africa following the discovery of huge oil... Continue Reading
    The broad objective of this study is to examine the impact of foreign direct investment and domestic investment on economic growth in Nigeria for the period of 1986 to 2013. To achieve the broad objective, the following specific objectives were raised:(i) Analyse the trend of foreign direct investment, domestic investment and economic growth in... Continue Reading
    The broad objective of this study is to examine the impact of foreign direct investment and domestic investment on economic growth in Nigeria for the period of 1986 to 2013. To achieve the broad objective, the following specific objectives were raised:(i) Analyse the trend of foreign direct investment, domestic investment and economic growth in... Continue Reading
    ABSTRACT The study was carried out to determine the influence of Foreign Direct investment (FDI) and Domestic investment (DI) on the economic growth of Nigeria. The study employed Augmented Dickey-Fuller test to test for time series property of the data. Johansen co-integration was also examined and consequently error correction model was... Continue Reading
    ABSTRACT The study was carried out to determine the influence of Foreign Direct investment (FDI) and Domestic investment (DI) on the economic growth of Nigeria. The study employed Augmented Dickey-Fuller test to test for time series property of the data. Johansen co-integration was also examined and consequently error correction model was... Continue Reading
     ABSTRACT The research investigates the determinants of foreign direct investment (FDI) in Nigeria over the period for 1980-2007. Cochrane Ocutt method of regression was utilized in the study. The findings indicate that exchange rate (economic factor) and political instability are the... Continue Reading
    ABSTRACT The research investigates the determinants of foreign direct investment (FDI) in Nigeria over the period for 1980-2007. Cochrane Ocutt method of regression was utilized in the study. The findings indicate that exchange rate (economic factor) and political instability are the crucial... Continue Reading
    ABSTRACT The research investigates the determinants of foreign direct investment (FDI) in Nigeria over the period for 1980-2007. Cochrane Ocutt method of regression was utilized in the study. The findings indicate that exchange rate (economic factor) and political instability are the crucial... Continue Reading
    CHAPTER ONE INTRODUCTION Background of Study The economies of the developing countries has of recent been experiencing very torrid times due to low domestic investment thereby, creating shortage in production and rising inflations. Duasa and Kassim (2009) described such countries as... Continue Reading
    Call Us
    whatsappWhatsApp Us