INVESTMENT OPPORTUNITIES FOR OPTIMIZING THE EFFICIENCY OF MARITIME TRANSPORT SECTOR IN NIGERIA

Abstract

The study examines several investment opportunities for optimizing the efficiency of the maritime transport sector in Nigeria and it reviews the significance of the sector as a vehicle for revenue diversification of the national economy. It highlights the investment opportunities in the sector based on the wide range of service activities provided to vessels, cargo and inland transport. Furthermore, the study identifies alternative sources of funding investments and the need to explore them through bilateral and multilateral agreements with multinational shipping and logistics firms and other nations. The study uses descriptive survey design and simple random sampling technique to draw a sample of 219 from the target population of 396. Descriptive statistics was used and data were obtained from interviews, empirical literature and media reports to identify the investment opportunities, challenges and prospects to enhance the efficiency of the maritime transportation sector. Structured interview (involving focus group) was used to identify the following challenges in the sector: lack of funding, maritime insecurity, foreign dominance, obsolete regulatory instruments, lack of automation of operations, insignificant participation of indigenous shipping operators, and undeveloped inland waterways system. The findings revealed that the challenges identified have contributed to the inability of indigenous shipping operators to compete effectively against foreign firms and that if investment opportunities in the sector were well utilized, they  would enhance trade facilitation, ease import/export flow, reduce cost of logistics, and minimize attendant corruption, while improving the efficiency and transparency of port processes. Thus, the paper recommends that Government should: encourage private sector involvement by offering them incentives to invest in infrastructure and services in coastal and inland waterway transportation; explore public-private partnerships, equity investments, and project financing arrangements; encourage investment in the sector towards full digitization through automation to integrate Nigerian port towards port community system. Key words: Investment, optimizing, public-private partnership, infrastructure, funding