Effects of Foreign Exchange Rate Fluctuations on Port Terminal Operators

Abstract

The study was carried out to investigate to investigate the effects of foreign exchange rate fluctuations on port terminal operators. Data for this study were collected through primary source which are from questionnaires. 100 questionnaires were administered to four selected terminal operators in Tin can Island and Apapa port complex in which 86 questionnaires were returned. Spearman rho correlation was used to analyse the three formulated hypotheses with the aid of computer based software known as SPSS version 21. The result showed that an increase in foreign exchange rate leads to decrease in profit of terminal operators, increase in foreign exchange rate leads to increase in operational cost and the level of unemployment. However, it was recommended that government should focus more on other sector of the economy apart from oil sales which is Nigeria’s major export earnings. Recommendation was also made in the aspect of reviewing the payment policy made by the government with the terminal operators as contained in concession agreement in such a way that it will be favourable to the operators.