THE EFFECTS OF MOBILE BROADBAND ON ECONOMIC GROWTH IN NIGERIA

Abstract

This paper analyzes the effects of mobile broadband on economic growth between 2010 and 2020 in Nigeria. The paper set out two objectives to analyze the effects of mobile broadband on (1). Economic growth and on (2) employment in Nigeria. The rising mobile broadband penetration rates in the face of declining growth and the growing unemployment rates call for an investigation into its impact on the Nigerian economy. The review of the literature suggested that the impact of mobile broadband in the economy is positive while its effects on employment are both positive and negative. The paper employed structural equations and GMM techniques for the analysis. The findings of this paper revealed that mobile broadband influences economic growth and employment in Nigeria. But the results depended upon instrumental variables such as population growth, broadband speed, capital stock, financial deepening and prices of crude oil in the international market. Mobile broadband subscriptions showed the evidence of reducing unemployment and other labour market outcomes in Nigeria. The quality and speed of mobile broadband was instrumental to enhancing economic growth and employment in Nigeria. The paper concluded that the potentials of mobile broadband are yet to be fully utilized in the country. The paper recommends that the government should invest in unserved areas, deepens the financial system, and reduce the regulation of the social media platforms because they help reduce unemployment and improving mobile broadband penetration in Nigeria.