MARITIME TRANSPORT PERFORMANCE AND ECONOMIC GROWTH IN NIGERIA

Abstract

Maritime transport is also important in international trade and economic development, especially in coastal economies like Nigeria, where seaports are the main points of entry and exit for imports and exports. Although Nigeria is strategically located in a maritime setting, and there have been efforts to transform and enhance the efficiency of its ports, there are still concerns about the efficiency of marine operations in relation to the industry’s ability to sustain economic growth. This paper investigates the connection that exists between the performance of maritime transport and economic growth in Nigeria during the period of 1995 and 2022. In particular, it determines the effect of cargo. throughput, ship calls, and gross registered tonnes on the real gross domestic product (RGDP) and considers the influence of the port turnaround time on economic growth. The Nigerian Ports Authority, Central Bank of Nigeria Statistical Bulletin, National Bureau of Statistics, and UNCTAD maritime Statistics databases were used to get annual time-series data. The research utilises the Autoregressive Distributed Lag (ARDL) modelling framework in order to estimate short-run and long-run links between the variables. Unit Root tests using the Augmented Dickey-Fuller (ADF) method were performed. to test stationarity, and then the ARDL bounds test was conducted to test co-integration. The diagnostic tests and Error Correction Models (ECM) were also conducted to make the models reliable and stable. The findings show that There are substantial long-run relationships between cargo throughput and gross. registered tonnage and Nigeria’s real GDP; hence, cargo volumes and ship Capacity positively impacts economic growth. However, the effect of ship calls is not statistically significant. Moreover, port turnaround time indicates a strong negative correlation to economic growth, meaning that the longer the vessel takes to be processed, the worse the economic performance. This research concludes that to enhance the economic growth of Nigeria, maritime operational Efficiency should be improved. The proposed policy to improve the productivity and the competitiveness of the maritime industry in Nigeria is investment in port infrastructure, improved cargo processing, and the creation of regulations that would help reduce the turnaround time of vessels.