IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON ECONOMIC GROWTH IN NIGERIA
This research study critically explored the relationship between information and communication technology (ICT) and economic growth in Nigeria vis-à-vis the relationship between ICT and employment generation in Nigeria, the link between ICT and poverty reduction in Nigeria, and to find out the relationship between ICT and industrial productivity. To achieve the objective of the study, secondary data from the Central Bank of Nigeria statistical bulletin and the National Bureau of Statistics for the period of 2000-2016 was collected. The analysis of data was conducted using econometric analysis by employing tool of Ordinary Least-Square (OLS). The result of the research has showed that ICT is a significant predictor of employment generation in Nigeria, and also that there is a significant relationship between ICT and poverty reduction in Nigeria. Moreover, the result indicated that ICT impacts significantly on industrial productivity. This result indicates that each component of the explanatory variables has variant impact on the dependent variable. This implies that the estimated model can be used for policy analysis as well as for economic inference. It is interesting to note that the regression equation is significant at 5 percent level of significant and show a high degree of influence on the independent variable as shown by the co-efficient of determination R2. The study recommended that since investment in IT infrastructures play a vital role in economic growth, it becomes necessary for the Nigerian government to encourage the increase its spending on IT in order to boost productivity and growth. Adequate government investment in telecom infrastructures and technology will facilitate and improve capacity building of industries in the country. Government investment in ICT projects must include the local communities. It should be in technologies that people in the society can easily adapt to.
of the Problem
Nigeria, which was one of the richest 50 countries in the early 1970s, has retrogressed to become one of the 25 poorest countries at the threshold of the twenty first century. It is ironic that Nigeria is the sixth largest exporter of crude oil and at the same time host the third largest number of poor people after China and India (Igbuzor, 2006).
Despite the increased flow of oil revenues, foreign aids into Nigeria and the enormous potential of foreign aid in accelerating economic growth through bridging of the savings and foreign exchange gaps, Nigerian economy is still characterized by low level of income, high level of unemployment, very low industrial capacity utilization, and high poverty level.
Consequently, Njoku (2011) highlighted reasons for the slow economic progress in Nigeria. Furthermore he suggested that the major reason why Nigeria is experiencing slow economic progress is not far-fetched from the monocultural economy that is practised, high population growth rate, import dependency, political instability, inadequate investment in information and communication technology (ICT) etc.
It is quite evident that Nigeria at present lacks innovation, capacities and capabilities in information technology (IT) management and hardware maintenance. This notwithstanding, the country has been and will continue to import and use a wide range of durable consumer electronics, computers and telecommunication equipments. It must therefore begin to accumulate the capabilities to repair and maintain these vintages. Indeed, if Nigeria is not to be left behind in global trade and development, it must be able to master certain basic capabilities in ICT.
Therefore, this study shall assess the link between information and communication technology and economic growth in Nigeria from 2000-2016.
1.2 Objective of the Study
The general objective of this study is to assess the link between information and communication technology and economic growth in Nigeria from 2000-2016. Other specific objectives include;
i. To examine the relationship between ICT and employment generation in Nigeria.
ii. To investigate the link between ICT and poverty reduction in Nigeria.
iii. To find out the relationship between ICT and industrial productivity.
1.3 Research Questions
The undertaking of this research work shall be guided by the following research questions:
1. What is the relationship between ICT and employment generation in Nigeria?
2. What is the link between ICT and poverty reduction in Nigeria?
3. What is the relationship between ICT and industrial productivity?
1.4 Research Hypotheses
The researcher intends to test the following hypotheses:
Ho: There is no significant relationship between ICT and employment generation in Nigeria
Ho: There is a significant relationship between ICT and employment generation in Nigeria
Ho: There is no statistical link between ICT and poverty reduction in Nigeria.
Ho: There is a statistical link between ICT and poverty reduction in Nigeria.
Ho: There is no relationship between ICT and industrial productivity.
Ho: There is a relationship between ICT and industrial productivity.
of the Study