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FINANCING MARITIME INFRASTRUCTURE IN NIGERIA. A CASE STUDY OF LAGOS PORT

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Maritime is essential to the world’s economy as over 90% of the world’s trade is carried by sea and it is, by far, the most-effective way to move huge volumes of goods and raw materials around the world.

From a very broad perspective, maritime activities have a key role to play in the alleviation of poverty and creating wealth because they constitute an important source of income and employment for many people in maritime nations of the developing world, including Nigeria, in the form of supply of seagoing personnel, labour for ship recycling, ship owning and operating, ship building and repairs, as well as port services, among others. Therefore, if maritime transport or maritime related activities are threatened or become terribly in-secured, it can have serious impact on the nation’s economic growth.

The survival of the Maritime Industry in any country depends to a considerable extent on the level of aggregate demand for shipping services and the country’s shipping lines market share. The later depends on the operational efficiency of the lines and the former on how well the Country is performing. Using the trend in the total number of vessels and the cargo throughput of Nigerian Ports, there is an observable growth in the demand for shipping services in Nigeria. Besides, the nature of the Nigerian economy, which is import dependent, and oil economy which boosts her export cargo, indicates that the maritime industry will continue to be relevant to the nation’s economy, which would in turn require that modern infrastructures as well as adequate maritime security are provided.

In addition, the Maritime industry in Nigeria, to a large degree, plays important roles in civilization, development in the acquisition and construction of vessels, types of cargoes, enhancement of navigational waterway, application of exciting technology to the efficient extraction of oil and gas from the offshore fields as well as construction of efficient ports for cargo handling such as Lekki and Badagry deep sea ports that are under construction.

1.2 Statement of the problem

Nigeria requires a practical and holistic plan to address a number of issues challenging the Maritime Industry and to harness the potentials for the benefit of the nation. The Industry is vast but highly untapped despite years of persistence and several attempts to revitalize it.

1.3 Objectives of the study

1. To understand the impact of financing maritime infrastructure on the Nigeria economy

2. To understand the relationship between the development of maritime infrastructure in Nigeria and the growth of Nigeria economy

1.4 Research questions

1. What is the impact of financing maritime infrastructure on the Nigeria economy?

2. What is the relationship between the development of maritime infrastructure in Nigeria and the growth of Nigeria economy?

15. Research hypothesis

H0: There is no relationship between the development of maritime infrastructure in Nigeria and the growth of Nigeria economy

H1: There is a relationship between the development of maritime infrastructure in Nigeria and the growth of Nigeria economy

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