ABSTRACT
The study, which spans the years 1976 to 2006, examines the impact of ocean cargo commerce on Nigeria’s economic development. In all three hypotheses, the ocean shipping commerce in thousands of tons served as the independent variable, while the gross domestic product Nigerian value of foreign reserve served as the dependent variable.
The following findings were reached after testing the three hypotheses:
1) The shipment export trade has had a favorable impact on the overall economy.
2) Shipment Export Trade has a considerable positive impact on Nigeria’s level of external reserves.
3) Similar to the previous two disclosures, the Shipmen Export Trade has a major impact on Nigeria’s foreign debt payment, particularly throughout the investigation period, 1976-2006.
As a result, the findings of this study highlight the necessity for the following recommendations:
Because of the perceived weak institutional framework, it is necessary to enhance the institutional setting in order to increase the contribution of external trade to the economy as a whole. Even though Shipment Export has been found to contribute positively to the economy in general, whether in terms of contribution to GDP, external reserve, or external debt payment, one might be tempted to argue that more contributions would have been recorded if the institutional setting had been stronger.
Similarly, our country’s weak transparency and corruption appear to be endemic, necessitating a deliberate effort to enhance performance.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
For a long time, shipping has been acknowledged as one of the most powerful accelerators for socioeconomic development. “A firm working in a country town without connections to the outside world can never attain high levels of efficiency because its small market will limit the degree of specialization,” Adams Smith wrote in 1776. Due to distances, it has been at the forefront of world openness from ancient times, and hence a primary driver in the globalization process. Globalization has had both a cause and an impact on shipping, particularly container shipping. Shipping containers could be considered the world’s first truly global industry. Container transportation, more than any other business, might claim to be the most environmentally friendly. Without container shipping, the world’s trade, and eventually our existence as consumers, would be inconceivable to imagine. Shipping has resulted in a tremendous increase in global merchandise commerce, which has continuously outpaced output growth. The total amount of commodities loaded at ports around the world in 2006 was predicted to be 7.42 billion tonnes, up from 5.98 billion tonnes in 2000. The entire value of global exports climbed by 64% from US$6,454 billion in 2002 to US$40,393 billion in 2005.
STATEMENT OF PROBLEM
The study, which spans the years 1976 to 2006, looks into the impact of ocean cargo commerce on Nigeria’s economic development. The independent variable in all three hypotheses was the ocean shipping commerce in thousands of tons, while the dependent variable was the GDP domestic product Nigerian value of foreign reserve.
The following results were reached when the three hypotheses were put to the test:
1) The shipment export commerce has benefited the economy as a whole.
2) Shipment Export Trade has a substantial positive impact on Nigeria’s foreign exchange reserves.
3) Similar to the previous two disclosures, the Shipmen Export Trade has a major impact on Nigeria’s external debt payment level, particularly throughout the investigation period, 1976-2006.
This is hampered by governments of various types’ inability to launch an indigenous national carrier to date.
As a result, the following are the basic questions that will stir the researcher’s head.
a. What has been the shipping or marine commerce trend and pattern in Nigeria?
b. What are the reasons for the current trends in the shipping industry?
c. Using economic measures such as Gross Domestic Product (DPD), External Reserves, and Debt Service Payment as yardsticks, what has been the influence of maritime trade on economic growth in Nigeria?
OBJECTIVES OF THE STUDY
The main goal of this research is to establish the impact of ocean shipping export commerce on Nigeria’s economic development objectively. The study aims to accomplish the following objectives:
1. Determine the link between Nigeria’s gross domestic product and ocean shipping export commerce.
2. To determine the impact of the ocean shipping export trade on Nigeria’s foreign exchange reserves.
3. To see if the ocean shipping export trade has a substantial impact on the payment of external loans.
4. To identify policy barriers to the efficient use of ocean shipping export trade to grow the economy and make policy recommendations.
RESEARCH QUESTIONS
As a result of the aforementioned objectives, we consider the following research question for the study?
1. What is the nature of the relationship between Nigeria’s economic development and ocean shipping export trade?
2. Has the level of Nigeria’s gross domestic product been influenced by the ocean shipping export trade?
3. What is the impact of Nigeria’s foreign exchange reserves on the ocean shipping export trade?
4. How has Nigeria’s debt service payment been influenced by the ocean shipping export trade?
5. What are the policy obstacles in Nigeria that prevent the effective use of ocean shipping export trade?
RESEARCH HYPOTHESIS
We will establish the following assumptions in order to conduct an adequate research project and assess the relationship between the required variables: H0:1 There is no statistically meaningful association between ocean shipping export commerce and GDP.
H0:2: Ocean shipping export commerce and external reserve have no meaningful association.
H03: There is no link between ocean shipping export trade and the payment of foreign loans.
SIGNIFICANCE OF THE STUDY
It goes without saying that the question of economic growth and development is one of Nigeria’s most sensitive issues today. The scenario of abject poverty in a land of excess, as in Nigeria, is one reason for the sensitivity of this problem. The reason for this is that every plausible Nigerian level of underdevelopment is present. Because of the current level of poverty and penury, even future generations are shackled and sold into economic slavery.
A study of the relationship between economic development, external reserves, debt repayment, and ocean shipping export commerce in Nigeria is therefore urgently required at this time. The requirement to offer a
SCOPE OF THE STUDY
This study attempts to provide an overview of the nature of the relationship between the ocean shipping export trade and Nigerian economic development, with a focus on several key measures of economic growth in Nigeria, such as gross domestic product, foreign reserves, and external debt repayment. Other countries that are relevant to this research project will be mentioned. The research spans 31 years, from 1976 to 2006.
LIMITATION OF THE STUDY
The goal of this study was to conduct an overview analysis of Nigeria’s ocean shipping export trade in connection to the country’s economic development and growth. It would evaluate the idea of ocean shipping export trade in respect to current levels of economic growth, with a focus on the relationship between ocean shipping export trade and certain economic growth indicators. However, due to time constraints and a lack of strong data bases and information sources in Nigeria, as well as a lack of research work, it was not possible to cover all of the country’s economic growth data.
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