Evaluation of Cell Phone Business in Nigeria: A Paradox of Gains and Losses

INTRODUCTION According to Warren (2002) and Fong (2009), ICTs include technologies and methods for storing, managing and processing information (e.g., computers, digital and non-digital libraries) and for communicating information such as e-mail, radio and television, (mobile) cell phones and "the web." The importance of information and communication in human activities cannot be overemphasized. Economists have long emphasized that information is critical for the efficient functioning of markets (Jensen, 2007). Accurate and speedy communication of information is important for negotiating prices, terms of payment, securing stocks of commodities and coordinating deliveries especially for any innovative entrepreneur. In many instances it is common to resort to traditional modes like oral and other established indigenous information mechanisms for obtaining information. However, with advancement in technology, many media have been developed which make communication and information flow faster and easier; leading to the advent of what is known as Information and Communication Technology (ICT). Iziguzo (2010) opined that economic development across all sectors of a nation's economy can be accelerated by improvements in the ICT infrastructure of the country. This is because ICTs not only contribute to the development of commercial activities, education, health and governance but are also key enablers of broad-based social and economic development as well as sustainable human development in a more general sense (Iziguzo, 2010). In actual fact, in modern day Nigeria, daily activities such as shopping, entertainment, banking, manufacturing, official duties both in public and private organizations, education, medical care, governance and transportation (particularly air flights as well as road traffic reports) have become increasingly dependent on information and communications networks (Baez, Kechiche, & Boguszewska, 2010; Elegbeleye, 2005; Gold, Shaibu, & Yusuf, 2012). RELATED STUDY The benefits of ICT include cheaper and higher quality of communication; easier access to information and wider market reach; reduction of corruption and red-tape in terms of making available necessary information and data e.g. census figures, available on the internet courtesy of ICT, can help validate polls result thereby preventing (election) rigging (or manipulations characteristics of such exercise in most developing countries (Agwu, Uche-Mba, & Akinnagbe, 2008; Kamel, Rateb and El-Tawil, 2009; Kuppusamy & Shanmugam, 2007). Furthermore, ICT can foster closer collaboration among domestic and global economic agents thereby improving productivity, competitiveness and citizen engagement (Agwu, et al, 2008; Kamel et al, 2009; Kuppusamy & Shanmugam, 2007). Kamel et al. (2009) asserted that ICT has become an invaluable platform for economic growth with significant changes in different economic activities such as increments in the gross domestic product (GDP) by 7.8%, 8.0%, 8.3% and 8.4% in the US, UK, Singapore and Australia respectively. Apart from increment in investment from 20% in 2001 to about 120% in 2009 and provision of about 3.08million direct and indirect employment (Baez et al., 2010); ICTs' (particularly mobile communication technology) contribution to the Nigerian GDP increased from 0.06% in 1999 to 3.6% in 2009 and 8.2% in 2010 (Awoleye, Okogun, Ojuloge, Atoyebi, & Ojo, 2012; US Embassy in Nigeria, Economic Section, 2011). In specific terms, the use of cell phones has been shown to contribute immensely to improved livelihood of actors in the national economies such as farmers and micro-entrepreneurs (Boadi, Boateng, Hinson, & Opoku, 2007; Foss & Couclelis, 2008; Gold et al., 2012; Roldan & Wong, 2008; Sanusi, Aigbeakaen, & Ndagi, 2007). The introduction of global system of mobile communication (GSM) and cell phones has made information/communication easier for many Nigerian households (Aigbeakaen, Sanusi, & Ndagi, 2007a, 2007b). …