SHIPPING INDUSTRY'S OPERATIONS AND ECONOMIC GROWTH OF NIGERIA: ANY LINKAGE?

Abstract

This paper examined the effect of shipping industry's operations on the growth of the Nigerian economy from 1991 to 2020. Variables considered include Shipping industry's share of GDP denoted by SHIG, Real GDP denoted by RGDP, Inflation rate denoted by INFR, Exchange Rate denoted by EXCR, and degree of trade openness denoted by DOP. Data for the study were gotten from both the Central Bank of Nigeria Bulletin (2020) and the Nigerian Ports Authority Annual Report (2020). The study patterned after the Ordinary Least Square Technique through the aid of E-Views 9.0. The study reported that the shipping industry's operations have a high direct effect on the growth of Nigerian economy in the periods under review. However, exchange rate and inflation rate had a high adverse effect on the growth of the Nigeria economy in the periods under review. Meanwhile, the degree of trade openness is still very low at the moment. Hence, the study conclude that the shipping industry is and remains the most feasible means of achieving high economic growth provided the current inflation, exchange rate, and trade policies are considered accordingly. Hence, the study recommends that the Nigerian regulatory authorities should ensure that all her ports facilities and sea borders are upgraded since the industry is instrumental to the growth of the Nigerian economy.