The effect of deregulation on the Nigerian telecommunications industry: A case study of the Nigerian Communications Commission (NCC)
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Background of the study :
Deregulation in the telecommunications sector has been a transformative force in many economies, fostering competition, innovation, and improved service delivery. In Nigeria, the Nigerian Communications Commission (NCC) has played a crucial role in liberalizing the telecommunications market by reducing entry barriers and promoting a competitive environment (Eze, 2023). Deregulation has led to increased investments, enhanced network coverage, and reduced service costs for consumers. However, the rapid pace of technological advancements and market competition also presents challenges such as service quality disparities and regulatory oversights (Igbinedion, 2024). Recent studies indicate that while deregulation has spurred growth in the telecommunications sector, issues related to consumer protection, market consolidation, and infrastructure quality persist (Obiora, 2025). This study critically examines the effects of deregulation on the Nigerian telecommunications industry, focusing on the regulatory framework established by the NCC, market performance metrics, and the overall impact on consumer services. By integrating quantitative market data and qualitative stakeholder insights, the research aims to provide a comprehensive evaluation of deregulation’s benefits and challenges (Eze, 2023; Igbinedion, 2024).
Statement of the problem
Despite the positive impacts of deregulation in the Nigerian telecommunications industry, challenges remain. Issues such as uneven service quality, regulatory lapses, and market concentration threaten the gains made since deregulation (Obiora, 2025). The rapid expansion of telecommunications services has not been matched by adequate regulatory oversight, leading to potential consumer exploitation and infrastructural disparities. The gap between deregulation policies and their effective implementation creates uncertainties in the market. This study seeks to investigate these issues, evaluating how deregulation has affected market performance and consumer services in the telecommunications sector, and to identify strategies to address the existing challenges (Eze, 2023).
Objectives of the study:
- To evaluate the impact of deregulation on market competition in the telecommunications sector.
- To assess the effects of deregulation on service quality and consumer protection.
- To recommend measures for enhancing regulatory oversight post-deregulation.
Research questions:
- How has deregulation affected competition in Nigeria’s telecommunications industry?
- What is the impact of deregulation on service quality and consumer protection?
- What strategies can improve regulatory oversight in the sector?
Research Hypotheses:
- Deregulation has significantly increased market competition.
- Deregulation has improved service quality but raised consumer protection issues.
- Enhanced regulatory measures can mitigate the challenges of deregulation.
Significance of the study
This study is significant as it examines the effects of deregulation on Nigeria’s telecommunications industry, offering insights into the benefits and challenges of a liberalized market. The findings will inform policymakers and industry stakeholders on ways to improve service delivery, enhance consumer protection, and ensure sustainable market growth. The research contributes to a better understanding of the regulatory needs in a rapidly evolving telecommunications landscape (Eze, 2023).
Scope and limitations of the study:
This study is limited to assessing the effect of deregulation on the Nigerian telecommunications industry through the regulatory framework of the NCC only.
Definitions of terms:
- Deregulation: The reduction or elimination of government regulations in a particular industry to promote competition.
- Telecommunications Industry: The sector that provides communication services such as telephone, internet, and broadcasting.
- Nigerian Communications Commission (NCC): The regulatory authority overseeing the telecommunications industry in Nigeria.
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