Performance evaluation of mobile network operators in Nigeria using Data Envelopment Analysis

Abstract

This research concerns the deployment of Data Envelopment Analysis (DEA) to evaluate the performance of Mobile Network Operators (MNOs) in Nigeria. The existing performance evaluation methods for MNOs is studied and analyzed; thereafter, the Data Envelopment Analysis (DEA) model was used to compute and compare the technical efficiency of each of the major MNOs in Nigeria for a period of six years (2015- 2020). The result obtained was analyzed into efficient and the inefficient MNOs and then performed ranking of the MNOs. The findings show that, among the four major Nigerian MNOs (MTN, 9mobile, GLO and Airtel) examined, MTN is the most efficient mobile operator based on Banker, Charnes and Cooper/ Variable Return to Scale BCC/VRS model followed by 9mobile, Glo and Airtel which has the least efficiency. This finding shows that mobile operators like MTN and 9mobile are committed to the best practice use of resources. It was further revealed that the efficiency of mobile operators for all the observed years is proportional to the GDP contributions and hence a lower efficiency in 2017 has shown a drop in the GDP contribution.