Exploring Productivity by Evaluating ISP Efficiency in Nigeria's Telecommunications Sector

Abstract

The digital divide in Africa, particularly Nigeria, has raised concerns about the efficiency of internet service providers (ISPs) in providing quality services to their subscribers. This research focuses on evaluating the efficiencies of the major ISPs in Nigeria, including MTN, Glo, Airtel, and 9mobile, using data envelopment analysis (DEA). The study examines vital efficiency metrics such as internet speed, cost of data, years of existence, and subscriber base over five years from 2015 to 2019. The results reveal varying levels of efficiency among ISPs, with MTN consistently ranking as the most efficient. These findings have implications for improving the quality of internet services and promoting healthy competition within the Nigerian telecommunications industry. The study also highlights the importance of considering multiple parameters in assessing ISP efficiency, shedding light on areas for future research and regulatory interventions by the Nigeria Communications Commission.