Impact of Seaport Operations on International Trade and Economic Growth in Nigeria

Abstract

In this paper, the authors examined the impact seaport operations played on international trade and economic growth in Nigeria. The study was motivated by decrease in growth rate in 2016 and 2020 and trade deficit in 2020 when compared to 2019 and Nigeria being import dependent despite strategies geared towards revitalizing the economy. Annual time series data from 1990-2022 were used to conduct this research. Key variables such as container throughput, container traffic, logistic performance index and seaport infrastructure index served as variables of seaport operations. The variables were tested using Augmented Dicker Fuller (ADF) and Philip-Perron tests to check for unit root and Philip-Ouliaris Cointegration test was used to determine long-run relationship. The data were fully analysed using the Dynamic Ordinary Least Square (DOLS) technique. The study revealed that Seaport operations (including cargo throughput, container traffic, logistic performance and seaport infrastructure) exerted significant positive impact on international trade and economic growth in Nigeria. Therefore, this paper recommended the initiation and implementation of portgate policies such as truck appointment systems, provision of integrated intermodal transport system and computerisation of processes for effective port operations. Also, Nigerian government should focus on investment in port infrastructure and revitalisation of other Eastern ports to full capacity utilisation.