Domestic financing of communication in developing countries

This a case study of the Nigerian communication situation which examined the efforts by this developing country towards the mobilisation of domestic resources to finance communication industry. The study revealed that except, during the period 1981-1985, 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 1960-1980, 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 throughout the twenty four year period beginning in 1962, except during the second development plan period between 1970-1974. The trend in domestic public financing appears to have been dictated by two factors, namely 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 1975-1980, although realized expenditure "fell slightly below to a level of 7.2%. The article observes that these observed trends show clearly that there does not seem to have been any strong commitment by the Nigerian government to communication services to meet the needs of a significant portion of the population, especially those in the rural areas, and notes that this situation is not likely to change soon due to that country's present poor economy and the overemphasis by the government on market forces.