ECONOMIC POLICY IMPLICATIONS OF PORT CONCESSION IN NIGERIA

ECONOMIC POLICY IMPLICATIONS OF PORT CONCESSION IN NIGERIA

ABSTRACT

Previous research on privatization has concentrated on the effects on output, profitability, investment, and efficiency at the firm level, ignoring economic growth and other consequences. Nigeria’s port privatization through concession in 2006 covered nearly all of the country’s ports. However, the few studies on the subject did not account for the complexity of the multiple port system or control for alternative explanations for economic changes. This correlational study tested the property rights theory by determining whether changes in port production efficiency following privatization are good predictors of Nigerian economic growth. Eight years of existing panel data from Nigerian ports were collected, yielding 160 observations on several selected variables. The analyses accounted for the impact. linear programming was used to address the port system’s complexity due to the presence of confounding or interacting variables. According to the multiple regression analysis, privatization, deregulation, cargo increases, interest rate, and inflation rate all accounted for significant variations in short and long-term economic growth. Through increased cargo throughput, port privatization contributed to economic growth. Following privatization, the Malmquist linear programming analysis revealed overall but modest improvements in production efficiency changes. This study may inform port managers in Nigeria on ways to improve overall competitiveness by identifying potential areas for efficiency improvements. The research has the potential to contribute to social change by clearly identifying the critical variables to economic growth in Nigeria to aid in economic planning, poverty alleviation, and improving the quality of life.