1.1 Background of Study
The role of public infrastructure in economic growth has received greater attention since the research work of Aschauer (1989) and theoretical model of Barro (1990). It is believed that public investment on infrastructures such as electricity, transport and communication is essential in the process of growth in a particular economy, be it developing or developed. In essence, the conventional wisdom is that pubic investment in infrastructure, particularly in transport, plays a crucial role in facilitating economic growth and international competitiveness (Keho and Echui, 2011).
Transportation can be viewed as a public utility which supplies essential services, which cannot be cut off without danger of total or partial collapse of an economy (Bos, 2003). Along with power and communication, transport is one of the social overhead capitals which must be developed to a critical maximum level in order to facilitate investments in the other sectors. From its central point of view as one of artery of the economy, transport infrastructure constitute a major segment of the economy, while from the distributional point of view it contributes to providing consumers with necessities of life (Ogwude, 2011). Also, good transport linkages reduce transport costs, road congestion and promote industrial development throughout the country. This implies that the better the infrastructure the more successful the economic development polices of a country. (Ashipala & Haimbodi, 2003). Poor infrastructure facilities, especially in transport, communications and information technologies, are regarded as one of the major impediments for investment and growth in many African countries (World Bank, 1994).
Historically transportation in Nigeria dates back to the colonial era. Where road network,rails, and water(inland and sea water ways), were tailored towards the gains of the colonialist in the exportation of cash crops, such as groundnuts, cocoa, cotton and palm produce and to the importation of cheap, mass produced consumption goods. These early transport systems were planned in the most economic way possible, as typified in sub-standard road and rail alignments and a sub base, which later proved inadequate to accommodate heavy vehicles. But following the independence of the country in the 60s, transport became one of the instruments of the country and an important tool for social and economic development. At present, the modes of transport in Nigeria include road, railways, airways, inland waterways, coastal waters, the deep sea, and the pipeline (Anyanwu, et al. 1997).
In recent times, the transport sector has been grossly underdeveloped. The decay of transport systems in Nigeria can be attributed to several factors including lack of development of a master plan for the sector, low public investment in transport services and infrastructure in the form of poor funding, poor maintenance culture, policy non-implementation and reversals, corruption, lack of strong political will, etc. These and many other factors have responsible for the poor state of our transport systems. The prompting question is as to what extent has the transport sector contributed to the growth of the economy. This study seeks to answer the question of the importance of investment in transport infrastructures and it’s possible contribution to economic growth in Nigeria.
1.2 Purpose of Study
The purpose of the research work is to analyze the economic development of Nigeria State through investment in shipping (a case study of Lagos State):
- The economic impact of vessel traffic rerouting and/or reducing the speed in order to reduce the probability of vessel strikes or other negative impact to endangered marine species.
- Analysis and treatment of costs (constraints and penalties) from unexpected delays, in addition to the additional transit time cost.
- Estimation of the direct and indirect economic growth on the shipping industry and the effects of potential port call dislocation for the implementation of the proposed management options (e.g. speed deceleration or ship rerouting).
1.3 Statement of the Problem
Investigation reveals the following problems of the existing research work;
- Lack of information of the pre-requisite needed to enhance economy growth,
- Lack of information relating to the Investment/divestment constraints in shipping,
- Lack of precise and concise information of the influence of investment in shipping and economic growth in Lagos State
- Lack of proper investigation of the influence of growing economy through investment in shipping.
1.4 Objectives of the Study
The general Objective of this study is to analyze the economic development of Nigeria state through investment in shipping (a case study of Lagos State). The specific Objectives are to find out the following:
- To provide information that will be beneficial to the economy
- To provide information relating to the Investment/divestment constraints in shipping
- Provision of precise and concise information of the influence of investment in shipping and economic growth in Lagos State
- To investigate the influence of growing economy through investment in shipping.
1.5 Research Questions
The following research questions were formulated to guide this study:
- What is the effect of investment on economy growth in Nigeria?
- Is there any relationship between investment in shipping and economy growth in Lagos State?
- Are there any problems facing investment in shipping at Lagos State Waterways Authority?
1.6 Research Hypotheses
The following research hypotheses were formulated to guide this study:
Hypothesis 1
- H0: There is no significant relationship between investment in the transport sector and economic growth in Nigeria.
- H1: There is significant relationship between investment in the transport sector and economic growth in Nigeria.
Hypothesis 2
- H0: There is no significant relationship between investment in the transport sector and unemployment in Nigeria.
- H1: There is significant relationship between investment in the transport sector and unemployment in Nigeria.
1.7 Significance of the Study
This research work when completed and implemented it will help to provide information that will be beneficial to the economy, provision of precise and concise information of the influence of investment in shipping and economic growth in Lagos State and it will investigate the influence of growing economy through investment in shipping.
Besides, the study will serve as reference material for subsequent researcher in the field or related topics.
1.8 Scope of the Study
This study is limited to Lagos State Waterways Authority and upon the research topic which is growing the economy of Nigeria state through investment in shipping (a case study of Lagos State).
1.9 Limitation of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed forth is project work. There were lots of information needed from the staffs of this institute on to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
1.10 Definition of Terms
- Transportation: It is an act, process, or instance of transporting or being transported. Any device used to move an item from one location to another. Common forms of transportation include planes, trains, automobiles, and other two-wheel devices such as bikes or motorcycles.
- Accessibility: accessibility refers to ease of reaching destinations. People in places that are highly accessible would reach many other activities or destinations quickly and people in inaccessible places can reach many fewer places in the same amount of time, so that nearer or less expensive places are weighted more than farther or more expensive places.
- Logistics: Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.
- Logistics Management: Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverses flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.
- Investment: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.
- Economy: the state of a country or region in terms of the production and consumption of goods and services and the supply of money.
- Constraint: A constraint is something that limits or controls what you can do. Their decision to abandon the trip was made because of financial constraints.
- Shipping: Shipping is the physical moving of good from one point to another, such as the moving of merchandise from the warehouse to the customer. The shipping process follows the manufacture and the packing of goods and will be controlled by a shipping or logistics company.
- Shipping Investment: Shipping investments are a form of alternative investment into an asset related to worldwide shipping. This could be into ships themselves, or a related asset such as containers, with the expectation of capital appreciation, dividends, and/or interest earnings.
