1.1 Background of the Study
Telecommunications facilities in Nigeria which were first established in 1886 by the then colonial administration. These were geared towards discharging administrative functions rather than the provision of socio-economic development of the country. Between 1960 and 1985 the telecommunications sector consisted of the Department of Posts and Telecommunications (P&T) in charge of the internal network and a limited liability company, the Nigeria External Telecommunications (NET) Limited, responsible for the external telecommunication services. NET provided the gateway to the outside world. Telecommunications development during this period is characterized by serious short-falls between planned targets and their realization, principally because of poor management, lack of accountability and transparency and low level of executive capacity. Telecommunications department was split into Postal and Telecommunications Divisions. The later was merged with NET to form Nigerian Telecommunications Limited (NITEL), a limited liability company, while the Postal Division was reconstituted into another organization called the Nigeria Postal Service (NIPOST). The main objectives of establishing NITEL were to harmonize the planning and co-ordination of the internal and external telecommunications services, rationalize investment in telecommunications development and provide accessible, efficient and affordable services.