CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Despite the government of Nigeria’s efforts to combat corruption in all sectors, several unwholesome activities continue in the maritime sector, most notably by shipping agencies and terminal operators conspiring to slam fictitious charges on importers and agents under the watchful eye of government agencies in what has been described in the maritime domain as a never-ending economic rape. The result of this orchestrated graft, which frequently amounts to several billions of naira each year, has continued to increase the level of capital flight that the country experiences each year. Used autos, clothing, food, and other things are now cheaper to buy in Cotonou, Lome, and Ghana marketplaces than in Nigeria, thanks to this strategy (Thisday, 2015).
According to prior reports, terminal operators, shipping lines, and shipping agents have taken advantage of Nigeria’s highly uncontrolled maritime industry to raise charges such as demurrage, container deposit, and other fees that differ from those in neighboring West African ports. According to a complete research of shipping charges undertaken by a marine industry publication, “Shipping Position,” across three African countries – Nigeria, Ghana, and Benin Republic – port charges in Nigeria remain the highest in the ECOWAS area. Experts, on the other hand, have linked the exorbitant fees to unsavory practices among shipping businesses operating in Nigerian ports. While getting the container deposit reimbursement at other ports takes a few days once the empty container is returned, it could take up to a month in this port. Importers are further baffled by the fact that, in contrast to what is available in other West African countries’ ports, Nigeria only offers three days of free progressive storage, whereas Benin, Ghana, and Cote D’Ivoire all offer seven days. Maritime experts have stated that the move is jeopardizing the country’s standing as a sea center, as cargoes from Nigeria are being snatched up by the ports of Cotonou, Lome, and Accra. Some shipping companies choose to call at other West African ports where they have substantial advantages, including decreased prices, and it is thought that this development is to blame for the country’s partial cargo drought (Tancott, 2015). Smuggling is becoming more common as some importers struggle to make a profit.
STATEMENT OF PROBLEM
Ports play an important role in the Nigerian economy and development since they handle roughly 75 percent of all trade between Nigeria and the rest of the world. As a result, the necessity of guaranteeing port efficiency is linked to a country’s capacity to compete on a global scale. Unfortunately, extortion by shipping agencies, terminal operators, and government officials has continued to frustrate importers, resulting in increased commodity prices, increased smuggling, and reduced the competitiveness of Nigerian ports, as many importers prefer to use ports in neighboring West African countries. The researcher, on the other hand, is looking into the extent of fraud in the maritime sector to see how it affects the competitiveness of Nigerian ports.
OBJECTIVES OF THE STUDY
The following are the study’s objectives:
The goal of this study is to determine the extent of maritime fraud in Nigerian ports.
The purpose of this study is to see how maritime fraud affects the competitiveness of Nigerian ports.
The goal is to figure out how to tackle marine fraud.
RESEARCH QUESTIONS
How prevalent is maritime fraud in Nigerian ports?
What impact does maritime fraud have on Nigeria’s port’s competitiveness?
What can be done to combat marine fraud?
SIGNIFICANCE OF THE STUDY
The following are some of the study’s implications:
The findings of this study will inform the Nigerian government and the general public on the current state of corruption in the maritime sector, as well as how it affects the port’s competitiveness. It will also provide training on how to combat the threat of corruption in the maritime industry.
This study will add to the body of knowledge in the domain of the impact of personality traits on academic achievement in students, thereby forming the empirical literature for future research in the field.
RESEARCH HYPOTHESIS
HO: There is no link between maritime fraud and the competitiveness of Nigerian ports.
HA: There is a strong link between maritime fraud and Nigerian port competitiveness.
SCOPE OF THE STUDY
The scope of fraud in the Nigerian maritime sector, as well as how it affects the competitiveness of Nigerian ports, will be examined in this study.
LIMITATION OF THE STUDY
Financial constraints – A lack of funds impedes the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data gathering procedure (internet, questionnaire and interview).
Time constraint: The researcher will be working on this subject while also doing other academic tasks. As a result, the amount of time spent on research will be reduced.
REFERENCE
“16 new RTG cranes for APM,” says G Tancott in Transport World Africa. The date was September 12th, 2015.
THISDAY LIVE, 35, Creek Road, Apapa, Lagos, Nigeria, on January 18th, 2015.
Leave a Comment