Foreign Direct Investment and Technological Transfer in Telecommunication Sector in Nigeria

Abstract

The Nigerian state for quite some time has been saddled with the challenge of technology transfer as the country has remained a producer of raw materials for industrial countries. Among the various ways Nigeria has sought to overcome her technology advancement challenges is through foreign direct investment. This study therefore, assesses the impact of foreign direct investment on technological transfer in the telecommunication sector in Nigeria. This study utilized ex post facto research design and made use of dependency theory as its framework of analysis. Findings of the study revealed that a sum of 144.8 billion dollars was received from foreign capital importation during 2013-2024, out of which FDI inflow stood at 12.2 billion dollars and a sum of 6,562,813,316.68 dollars was received in the telecommunication sector. Thus, the Multinational Corporations (MNCs) operating in the telecommunication sector in Nigeria have provided training programs to Nigerians working in the telecommunication sector of the economy. However, the
overall impact of FDI on technological transfer in the telecommunication sector is low and limited, as productive capacity and innovation ability of Nigerians working in the telecommunication sector was not profoundly enhanced by these inflows. The study therefore recommends the Nigerian government needs to increase funding for Research and Development (R&D) activities to support technological advancements. This can be done through partnerships between government, private sector, and academic institutions to create R&D centres in order to enhance technological advancement in the country.