Impact of Shipping on Nigerian Economy: Implications for Sustainable Development

Abstract

It is imperative to explore avenues that exert impact on the citizenry of Nigeria Vis-à-vis an improvement
material per capita income, hence, improved material income and standard of living. Shipping as a capital
and/or Inland water trade has tremendous impact on the nation’s economy of which the study is aimed at
exploring through cargo reservation, transportation and haulage of wet and dry cargo within and outside
the Nigerian waterways. The study will invariably invoke, recreate and set in motion the impact and
economic opportunities of the Nigerian shipping sector for possible investment by public or private sector,
or a combination. The investment climate in Nigerian Shipping Industry is guided by the current National
economic development policy which is aimed at promoting strong private sector driven industry with
government as the enabler. Nigeria looses a lot of revenue due largely to lack of cargo carrying capacity of
Nigerian fleet. Example, the liquefied natural gas (LNG), liquefied petroleum gas (LPG), iron ore, and other
bulk cargo is mostly carried by foreign ships. Nigeria cannot afford to toy with the maritime sector due to
the linkages between shipping activities and economic development as it is a primary logistic provider.
There are opportunities for investment in dry bulk, tankers, liner/container, coastal cruise services, and
offshore services if properly harnessed. With Nigeria as a flag state, proper funding and good management
will attract foreign ships for registration. Nigerian oil and gas is useless and valueless without shipping. Oil
and gas are like Siamese twins. Shipping facilitates movement of oil and gas from point of production to
point of need locally and internationally.