Effects Of Revenue Leakages on Maritime Sector Growth in Nigeria

Abstract

This study examined the Effects of Revenue Leakages on Maritime Sector Growth in Nigeria. The objective of the study is to assess the scenarios that aid revenue leakages and its effect on maritime sector growth in Nigeria. The research work employed the Keynesian economic theory to explain the effect of leakage on capital in the economy. Theory believes that when capital becomes scarce, that the government may to inject money to stimulate the economy afresh. The study used primary data sources of stratified random sampling of 60 respondents and tested same using ANOVA/SPSS statistical tools at the 5% confidence level. The result indicates that the relationship between import waiver and maritime gross domestic product is negative and insignificant, implying that a 1% rise in import and duty waiver, will cause a corresponding fall in maritime gross domestic product. Similarly, there exist a positive and significant relationship between customs duty and maritime sector growth. This implies that for every increase in the maritime sector growth, there is an increase of about 32% in custom duty fraud within the year in view; while, the relationship between cargo diversion and maritime gross domestic product is positive (0.52). The implication of this is that for every increase in the maritime sector, leads to an increase of 52% in cargo diversion in Nigeria ports. It shows that revenue leakages in the maritime sector can be stopped by decreasing the percentage of cargo diversion in Nigeria port. The study recommends among others that the federal government should as a matter of necessity digitalize the custom inspection process to reduce vessel waiting time and demurrage incurred by shippers.