IMPACT OF SEAPORT OPERATIONAL EFFICIENCY ON NIGERIA'S SUSTAINABLE INDUSTRIAL DEVELOPMENT

Abstract

This study investigates the influence of seaport operational efficiency on Nigeria's Sustainable Industrial Development, filling a gap in the literature. The study examines the effects of variations in operational benchmark and seaport delays across seven clearing processes: Form M processing, PAAR processing, custom duty assessment, duty payment, container examination, customs release, and container delivery on sustainable industrial development in Nigeria. The study's data was gathered through a questionnaire survey of manufacturing firms listed on the Nigerian Stock Exchange (NSE) between 2010 and 2019. The study population consisted of 31 firms, including consumer goods, healthcare, and industrial goods manufacturers. These companies regularly import cargoes via Lagos seaports and are required to submit a minimum of 20 import declarations annually. The study utilized the census sampling technique, utilizing all the population as a sample. Out of the 31 questionnaires distributed, 74% were filled and returned. The results of the error correction model (ECM) estimation approach show that in the log-run, standard time and delay in Form M processing negatively and significant impacted on industrial development of the sampled firms. Similarly, standard time and delay in custom duty assessment, examination, and customs release have an indirect influence on sustainable industrial development indicators like turnover, cost of sales and profit respectively. Addressing these delays is crucial for improving turnover, profitability, and promoting sustainable industrial development in Nigeria.