Comparative Analysis of Nigerian Ports Operational Performance and their Effects on Nigerian Economy

Abstract

Nigeria's seaports' operational efficiency is vital to the nation's economic growth, especially when considering maritime GDP. The economic potential of Nigerian ports has been severely limited by inefficiencies, such as delays, traffic, and poor infrastructure, which have had a profound impact on industries that depend on imported goods. Comparative analysis of Nigerian seaports' operational performance and its effect on the country's maritime GDP is the goal of this study. The study uses Data Envelopment Analysis (DEA), Stochastic Frontier Analysis (SFA), and Multiple Linear Regression to analyze secondary data on seaport operational performance from 2011 to 2023 taken from the Abstract and Statistics Department of the Nigerian Ports Authority and Maritime GDP data from the Central Bank of Nigeria (CBN) website. Warri Seaport is the most efficient seaport, surpassing Onne, Apapa, and Tincan Island seaports, according to the Decision-Making Units' (DMUs') efficiency summary output for 2011–2023. Warri has the highest efficiency percentage (21.15%), followed by Apapa (19.23%), Onne (17.39%), and Tincan Island (15.38%). According to the study, there is a substantial correlation between seaport operations and GDP, with important indicators like ship traffic and cargo throughput accounting for 88.7% of the variation in economic output. Even though they had detrimental effects, variables like waiting time and berth occupancy were not statistically significant. The study concludes that bolstering Nigeria's maritime economy requires better port operations. To improve overall port efficiency and economic growth, it is advised that significant investments be made in port infrastructure, technology, and workforce development. These investments should be combined with expedited customs procedures and the development of strategic international partnerships.

Suggested citation

Ismail Gbolahan Dere, Joel Ademola Ojekunle, Lekan Mohammad Sanni, Adelanke Samuel Owoeye (2025). Comparative Analysis of Nigerian Ports Operational Performance and their Effects on Nigerian EconomyJournal of Business, Innovation, Entrepreneurship & Technology Management, 1(1). https://doi.org/10.69798/94724817

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