Analyzing the Impact of Logistics Efficiency in Nigerian Seaports on Global Trade Competitiveness

Abstract

The performance of Nigeria in global competitiveness ranking shows that it faces logistical challenges in trade. Consequently, the purpose of this paper was to analyze Nigerian seaports' logistics efficiency in relation to trade strategy for global competitiveness. The paper assessed Nigeria's global trade competitiveness by analyzing the processing of various seaport clearance sub-systems, including Form M, Pre-Arrival Assessment Report (PAAR), Assessment of Duty (AD), Payment of Duty (PD), Examination (E), Custom Release (CR), and Delivery (D).The paper used a questionnaire survey to gather data on 23 Nigerian manufacturing firms listed on the NSE between 2010 and 2019 that regularly import cargo via Lagos seaports. Regression analysis conducted with SPSS showed that the cost of seaport clearance, which measured Nigeria’s global trade competitiveness has a high positive association (r=0.575) with the Form M number of agencies involved having a statistically significant influence (p=0.042)among other variables. It appears that the average cost of seaport clearance increases by ₦ 119,878 for each extra Form M agency involved.The results above make it abundantly evident that Nigeria's competitiveness in global trade is impacted by seaport logistics, particularly with regard to the clearing system. Therefore, one way to increase Nigeria's competitiveness is through effective seaport logistics. Effective seaport logistics can lower trade costs, making Nigerian goods competitive on the global market and vice versa.