Domestic financing of communication in developing countries: a preliminary investigation of the Nigerian case.

A case study examines the Nigerian effort to finance their communication industry. The study revealed that except during the period 1981-85, planned public investment in the communication sector has been moderately high at a level of 6.1% of aggregate ex ante expenditure. For the period 1960-80, actual communications expenditure as a ratio of actual total expenditure was lower at an average of 4.5%. Total sector performance measured by the degree of resistance to plan distortions was lower for the communication sector relative to aggregate performance through the 24-period beginning in 1962, except during the 2nd development plan period between 1970-74. The trend in domestic public financing appears to have been dictated by 2 factors: The philosophy of economic planning and the fluctuations in economic fortunes. The oil book of the mid-1970s prompted the largest planned allocation of 9% during the period 1975-80, although realized expenditure fell slightly below to a level of 7.2%. These observed trends show clearly a lack of any strong commitment by the Nigerian government for communication services to meet the needs of a significantly portion of the population, especially those in the rural areas. This situation is not likely to change soon due to the country's presently poor economy and the overemphasis by the government on market forces.