Maritime Security Risks and Nigerian Maritime Trade-Related Economic Growth

The study examined the effects of maritime security risks on significance of Nigerian maritime trade-related economy. The objectives of the study were among other things: to examine the relationship between maritime security risks and the GDP contribution of the maritime trade-related in Nigeria, to examine the relationship between maritime security risks and unemployment rate in Nigerian maritime sector and to model the relationship between ship calls to Nigerian waters and variations in trend of maritime security risks. The study used quantitative research design method. Time series secondary data covering a duration of 22 years, that is, from 1999 to 2020 on pirate attacks against ships trading in Nigeria, attacks against offshore O&G infrastructure in Nigerian waters, frequency of illegal unreported unregulated (IUU) fishing activities in Nigerian waters, piracy related deaths and injuries affecting maritime personnel in Nigeria, Data sourced from the international Maritime Bureau (IMB) and Department of Petroleum Resources (DPR) were used as proxies for maritime security risks. Similarly, time series secondary data on value of Nigeria’s non-oil shipping trade, ship calls to Nigeria ports, GDP contribution of the shipping and maritime sector were sourced from the Central Bank of Nigeria (CBN), Nigerian Ports Authority (NPA) and used as proxies for maritime trade-related in Nigeria. The multiple regression analysis method, Log-Log constant elasticity model and paired sample t-test were used to analyse the data obtained. It was found that for each 1% increase pirate attacks against ships trading in Nigerian waters leads to a 0.636% increase in value of Nigerian non-oil shipping trade over the 22 years period covered in the study. The result also indicates that for each 1% increase in piracy related deaths in Nigerian maritime industry, the value of Nigeria non-oil shipping trade increases by 0.043%; and a 1% increase in illegal unreported unregulated (IUU) fishing operations increases by 7.188%. For each 1% increase in security attacks on the offshore O&G industry, the value of non-oil shipping trade in Nigeria increases by 0.682% while a 1% increase in piracy related injury increases by 0.023%. The relationship between the value of Nigeria’s non-oil shipping trade and variations in the trend of maritime security risks is not significant. The model showing the elastic relationship depicting the influence of maritime security threats on the GDP contribution of the Nigerian maritime transport industry is: LOGGDP = 4.218 + 0.489LOGPIRATE + 0.61LOGPIRDEATH + 1.418LOGIUU + 0.497LOGOGTACKS + 0.054LOGINJUR +e The model showing the elastic relationship depicting the influence of maritime security threats on the extent of unemployment in Nigerian maritime industry is: LOGUNRATE = 1.796 – 0.193LOGPIRATE – 0.044LOGPIRDEATH + 1.585LOGIUU – 0.032LOGOGTACKS – 0.0351LOGINJUR +e The model showing the relationship depicting the influence of maritime security risks on ship calls to Nigerian waters is: LOGSHCALS = 8.437 – 0.010LOGPIRATE – 0.053LOGPIRDEATH – 1.059LOGIUU + 0.141LOGOGTACKS – 0.041LOGINJUR +e. It was recommended among other things that in order to achieve increased growth in the value of Nigeria’s maritime trade-related, the security challenges in the Nigerian waters must be tackled using suitable security risk management strategies owing to the study finding indicated that maritime security risks are the caused of about 66% variation in the value of Nigerian maritime trade-related over the 22 years period.