ABSTRACT<.=”text-align: justify;”>The research examines the contribution of communication sector to economy development in Nigeria. The qualitative and quantitative evidence related to allocative and productive efficiency of NITEL in the wake of its commercialization and deregulation in 1992. The communication industry has expanded in terms of increased availability of telecommunication facilities, improved services, low can completion rate, Global system Mobile (GSM) etc.

The meaning, objectives, concepts and structural phases of communication industry was thoroughly examined. In line with this, other relevant concepts necessary to enhance the strength of communication industry on Nigeria economy were discussed.

The arithmetic data’s collected were analysed and interpreted using the chi-square method.

The study recommends that the greater private sectors participation will strengthen the reform efforts of telecommunication sectors.

The private sector should try and reduce their costs so that the efforts made by the government in order to provide accessibility will not be defeated by high cost.