ASSESSING THE RELATIONSHIP BETWEEN PORT INFRASTRUCTURE AND NIGERIA'S ECONOMIC PROGRESS

Abstract

Given the critical role that ports play in facilitating trade and economic growth, there is a strong need to assess the quality of Nigeria’s port infrastructure and its impact on the country’s economic performance. Sequel to this therefore, the study investigates the relationship between port infrastructure quality and economic growth in Nigeria. The study is based on quantitative method of secondary data collection method. Ex - post-facto research design was adopted to achieve the objectives of the study. The study draws its data from the annual reports of the Nigerian Port Authority and World Bank Statistical Bulletin with focus on information in the post-concession era from 2006 – 2022 for the period of 17 years. The ARDL Bound Test approach was adopted in estimating the relationship between the variables. The study findings shows that port infrastructure quality have insignificant relationships with economic growth in both the short-run and long-run. Specifically, the test of hypothesis one showed that there is no positive and statistically significant relationship between vessel traffic and gross domestic product in Nigeria. Similarly, the test of hypothesis two showed that there is positive and statistically significant relationship between cargo throughput and gross domestic product in Nigeria. Based on the findings, the study recommends that the government should modernize port facilities; increase the use of technology like automated systems, and enhancing cargo handling capacity. Finally, the government should expand the capacity for exports, especially of non-oil goods, to leverage on the increase in cargo throughput for broader economic benefits.