The effect of market deregulation on competition in Nigeria’s telecommunications sector: Evidence from the NCC
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Background of the Study
Market deregulation has been a transformative force in the telecommunications sector, fostering competition and innovation. In Nigeria, the Nigerian Communications Commission (NCC) spearheaded deregulation initiatives between 2000 and 2020 to liberalize the market, encourage private sector participation, and improve service delivery. These regulatory changes led to increased market entry, reduced service costs, and the rapid adoption of advanced communication technologies (Olatunji, 2023). Deregulation has spurred competition among service providers, resulting in enhanced quality of services, expanded network coverage, and a broader range of consumer choices (Ibrahim, 2024). However, while deregulation has promoted competitiveness, challenges such as market consolidation, regulatory arbitrage, and infrastructural disparities persist, affecting equitable access and consumer satisfaction (Chukwu, 2025). This study investigates the impact of market deregulation on competition within Nigeria’s telecommunications sector by analyzing performance indicators and market dynamics. The research aims to provide a comprehensive assessment of deregulation outcomes and to offer recommendations for further enhancing market competitiveness and consumer welfare.
Statement of the Problem
Despite the intended benefits of market deregulation in Nigeria’s telecommunications sector, significant challenges remain. Market consolidation and uneven infrastructural development have led to concerns over reduced competition and consumer exploitation (Olatunji, 2023). Inadequate regulatory oversight further complicates the competitive landscape, resulting in disparities in service quality and pricing (Ibrahim, 2024). These issues undermine the positive impacts of deregulation on innovation and market efficiency. This study seeks to explore the extent to which deregulation has transformed the telecommunications market and to identify the key factors that continue to impede full competitive benefits, thereby providing a basis for policy improvements (Chukwu, 2025).
Objectives of the Study
1. To assess the impact of market deregulation on competition in the telecommunications sector.
2. To identify challenges that undermine effective market competition.
3. To propose recommendations for enhancing regulatory oversight and competitiveness.
Research Questions
1. How has market deregulation affected competition in Nigeria’s telecommunications sector?
2. What challenges limit the benefits of deregulation?
3. What policy measures can strengthen market competition?
Research Hypotheses
1. Market deregulation positively influences competition.
2. Regulatory gaps and infrastructural disparities reduce competitive gains.
3. Enhanced oversight can improve market outcomes in the telecommunications sector.
Significance of the Study (100 words)
This study is significant as it evaluates the effects of market deregulation on competition in Nigeria’s telecommunications sector, offering valuable insights for policymakers and industry stakeholders. The findings will inform strategies to strengthen regulatory frameworks, enhance consumer protection, and promote a more dynamic market environment. By addressing persistent challenges, the research contributes to a competitive telecommunications landscape that supports technological innovation and improved service delivery.
Scope and Limitations of the Study
The study is limited to examining the impact of market deregulation on competition within Nigeria’s telecommunications sector as regulated by the NCC. It focuses on market performance and regulatory issues, excluding broader economic factors.
Definitions of Terms
• Market Deregulation: The reduction or elimination of government restrictions to foster competition.
• Telecommunications Sector: The industry involved in the provision of communication services.
• NCC (Nigerian Communications Commission): The regulatory authority overseeing telecommunications in Nigeria.
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