PRIVATE INVESTORS IN THE SHIPPING INDUSTRY IN NIGERIA

Abstract

This study was on private investors in the shipping industry in Nigeria. Three objectives were raised which included: To ascertain the effect of private investors in shipping industry in Nigeria, to ascertain the effect of lack of transparency with private investor in shipping industry in Nigeria and to find out the challenges faced by shipping industry that affect private investors. The total population for the study is 75 staffs Admiral Marine Shipping Nigeria Ltd and Emiros Cargo Limited in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies

Chapter one

Introduction

1.1Background of the study

Maritime shipping comprises a large variety of different businesses which according to UNCTAD (2011) can be categoried as follows: Shipping building, ship owning, ship operation (container ships), ship financing, ship scrapping, ship classification, ship registration, ship insurance (Protection & Indemnity), seafarer supply and port operation (container terminal operators). These areas of maritime activities have prospects for sustained growth as supported by the positive trends in value of exports on ships, floating structures and the world seaborne trade. Shipping as a service sector is an important component of the national economy. It makes a direct significant contribution to GDP, job creation and provides crucial inputs for the rest of the economy

There is no gainsaying the fact the maritime industry plays a prominent role in the economy of most nations. As a matter of fact, events around the world have shown that the maritime sector, when handled rightly, can go a long way in the reduction of poverty, wealth creation, skills acquisition promotion and encouraging entrepreneurship. The maritime sector, if well harnessed, not only has the capacity to boost a country’s economic development but also contribute very significantly to the growth of the national gross domestic product (GDP). Some of the opportunities the sector can bring include: providing a platform for global shipping and commerce; act as a source of renewable energy; enabling fisheries, tourism, maritime transport and infrastructure, to mention but a few (Ekpo Imoh, 2012)

In Nigeria, the maritime industry has for some decades now, been bedeviled by myriads of challenges including but not limited to paucity of funding/financing and public private partnership (PPP), inadequacy of the legal and regulatory framework, inadequate incentives for private investors, lack of political will and inconsistencies in policy formulation (Ndikom Obed et a, 2017). It is against this background the researcher wants to investigate the private investors in the shipping industry in Nigeria

 Statement of the problem

Some of the key factors that influence the development of shipping industry in Nigeria include: inadequate financing, inefficient ports infrastructure, deficit in maritime infrastructure, inefficiencies, lack of transparency and sharp practices. The maritime industry is highly capital intensive and financing is very pivotal to increasing private sector participation in the maritime industry. This is true for the maritime sector in Nigeria. Disappointedly, the nation’s maritime industry has been marked with stunted growth until recent times. The stunted growth can be mostly attributed to inadequate financing. Paucity of funding or inadequate financing has brought about inefficiency and ineffectiveness in the management of maritime industry services. Thus, affecting investments in maritime infrastructure and equipment, which are critical to the efficient delivery of services in maritime operations. Based on this background the researcher wants to investigate private investors in the shipping industry in Nigeria

Objective of the study

The following objectives will be ascertain;

1. To ascertain the effect of private investors in shipping industry in Nigeria
2. To ascertain the effect of lack of transparency with private investor in shipping industry in Nigeria
3. To find out the challenges faced by shipping industry that affect private investors

Research question

The study formulated the following research question

1. What is the effect of private investors in shipping industry in Nigeria?
2. What is the effect of lack of transparency between private investor and shipping industry in Nigeria?
3. What are the challenges faced by shipping industry that affect private investors in Nigeria?

Research hypotheses

The study formulated the following research hypotheses;

H0: there is no significant effect of private investors in shipping industry in Nigeria

H1: there is significant effect of private investors in shipping industry in Nigeria

H0: there is no significant effect of lack of transparency between private investor and shipping industry in Nigeria

H2: there is significant effect of lack of transparency between private investor and shipping industry in Nigeria

H0: there are no significant challenges faced by shipping industry that affect private investors in Nigeria

H3: there are challenges faced by shipping industry that affect private investors in Nigeria

Significance of the study

The study will be of huge benefit to students, lecturers and maritime industry. The study will give a clear insight on the private investors in the shipping industry in Nigeria. The result of the study will help to sort out the challenges shipping industry get with private investors. The study will also serve as a reference to other researcher that will embark on the related topic

Scope of the study

The scope of the study covers private investors in the shipping industry in Nigeria. The study will be limited to maritime industry in Lago state

Limitation of the study

The researcher encounters some constraints which limit the scope of the study namely:

The research material available to the researcher is insufficient, thereby limiting the study

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Definition of terms

Private investor: Private Investors are the individuals or firm that shows a keen interest in investing their money in a company to lend a financial hand to the company & contribute to its growth & earning a value for their investments. Private Investors are a key source to raise startup capital for the businesses

Shipping industry: The international shipping industry is responsible for the carriage of around 90% of world trade. Shipping is the life blood of the global economy. Without shipping, intercontinental trade, the bulk transport of raw materials, and the import/export of affordable food and manufactured goods would simply not be possible

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