In the bustling heart of Nigeria’s economic engine, the construction sector is grappling with a silent but formidable adversary: the inefficiencies of its seaports. A groundbreaking study published in the *CSID Journal of Infrastructure Development* (translated as the *Journal of Infrastructure Development*) has shed light on how these bottlenecks are chipping away at the sector’s contribution to the nation’s Gross Domestic Product (GDP). The research, led by Ismail Gbolahan Dere of the Federal University of Technology, Minna, Niger State, Nigeria, delves into the intricate relationship between port performance and economic growth, offering a roadmap for much-needed improvements.
The construction industry in Nigeria is a voracious consumer of imported materials, making the efficiency of seaports a critical factor in its success. However, delays and inefficiencies at these ports have led to increased costs and reduced competitiveness, ultimately impacting the sector’s GDP contribution. Dere’s study, which analyzed data from 2011 to 2023, reveals that key performance indicators such as cargo throughput, personnel efficiency, and ship traffic significantly influence GDP. “Our findings underscore the pivotal role of port efficiency in driving economic growth,” Dere asserts. “Improvements in these areas can unlock substantial economic benefits.”
The study employed advanced statistical methods, including regression and Stochastic Frontier Analysis (SFA), to quantify the impact of various port performance indicators on GDP. The results were striking: cargo throughput, personnel efficiency, and ship traffic all had positive and significant effects on GDP, with beta values of 0.462, 0.283, and 0.402, respectively. In contrast, inefficiencies such as prolonged turnaround time and waiting time had negative effects, with beta values of -0.178 and -0.098, respectively. “These findings are consistent with previous research and highlight the crucial role of port efficiency in driving economic growth,” Dere notes.
The study also found that the gross registered tonnage, a measure of a ship’s overall size, had a positive influence on GDP. This suggests that accommodating larger vessels can bring economic benefits, potentially by reducing the number of trips needed to transport goods. The regression model used in the study demonstrated strong explanatory power, with an R² of 0.908 and an adjusted R² of 0.882, indicating that the included variables could explain 88.2% of the variance in GDP.
So, what does this mean for the future of Nigeria’s construction sector and its broader economic landscape? The study recommends focused investments in modern cargo handling technologies, workforce optimization, and infrastructure upgrades to mitigate delays. It also advocates for strategic partnerships with international shipping companies and policy interventions, such as tax incentives for modernization and simplifying customs procedures, to enhance overall efficiency.
“Addressing existing inefficiencies and leveraging operational improvements can support Nigerian seaports in substantially contributing to the construction sector’s GDP,” Dere concludes. “This, in turn, can support broader sustainable economic development.”
As Nigeria strives to diversify its economy and reduce its dependence on oil, the construction sector’s role becomes even more critical. By improving the operational performance of its seaports, Nigeria can unlock significant economic benefits, not just for the construction sector but for the broader economy as well. The study published in the *CSID Journal of Infrastructure Development* serves as a clarion call for action, offering a roadmap for much-needed improvements in port efficiency. The ball is now in the court of policymakers and industry stakeholders to act on these findings and drive sustainable economic growth.