SOURCE:

Faculty: Management Sciences
Department: Business Administration

CONTRIBUTORS:

Igbodo, R. O.
Ikezue, C. N.

ABSTRACT:

The dwindling nature of economic growth in Nigeria as a result of reliance on single product – the endowment with numerous human and natural resources notwithstanding – has been a great concern to well meaning Nigerians and foreigners who have businesses to do with the country. This is so because one finds it incomprehensible as to why a country so endowed with tremendous human and natural resources should dwell in a vicious cycle of economic downturn. This study “performance of the maritime subsector and economic growth in Nigeria, 1995 – 2015” was an attempt to determine the extent to which maritime subsector has contributed to Nigerian economic growth over the years with a view to knowing how much it can help to stimulate the nation’s economic growth when adequately harnessed. Four objectives, four research questions and four hypotheses were developed. The expo-facto research design was adopted which called for the usage of secondary data in analysis. Data were obtained from Central Bank of Nigeria and National Bureau of Statistics, among other secondary sources. The data were regressed in determining the relationship between variables of maritime performance and variables of economic growth. The findings showed that there is a positive relationship between indicators of maritime subsector performance and indicators of economic growth in Nigeria. That means ship haulage, berthing and custom duties have positive relationships with balance of payments, external reserves and total revenue respectively. The findings further showed that Nigeria can rely on the maritime subsector to grow economically if the subsector is fully exploited. In conclusion, the maritime subsector is seen as a veritable engine of growth for the Nigerian economy when well harnessed. It was recommended that the government of Nigeria should shift emphasis from oil sector to this very viable subsector in terms of policy making, massive investment, control of custom duty invasions and encouragement of indigenous participation. These will certainly take the country out of economic stagnation.