The Impact of Maritime Piracy on the Output of the Shipping Industry in Nigeria
1AHMODU, Kingsley Olufemi,2.OBAYORI, Joseph Bidemi, 3.ONYEMA, Henry Kelechi
The study assessed the impact of maritime piracy on the output of shipping industry in Nigeria from 2002-2013. The literatures of the study revealed that the shipping industryhas been so much affected by the end result of maritime piracy. This led to loss of revenue to the federal government occasioned by high insurance premium changeable on both ships and cargoes coming to Nigeria. This study mainly employs secondary data relating to the dependent and independent variables from 2002 to 2013 via publications from abstract of Port statistics of the Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency (NIMASA) and International Maritime Bureau (IMB). The technique of Ordinary Least Square of multiple regressions was used. The findings from the OLS regression results showed that an increase in the incident of maritime piracy will reduce the output of the shipping industry in Nigeria. Also, an increase in the number of people /seafarer attacked by maritime pirate will reduce the output of the shipping industry; and increase in the security expenditure will increase the output of the shipping industry and hence the growth of the Nigerian economy.Based on these findings,the following recommendations amongst others were made; building capacities in security agencies saddled with the responsibility of security the Nigerian waterways could go a long way to prepare and professionally mandate a better service delivery. The need to introduce radar technology in monitoring the sea and the establishment of Regional Maritime Awareness Centreis not only imperative but a desire.Also,security expenditure should be well utilized to provide security of life and properties on the Nigeria territorial water ways; this will put an end to pirate activities.