1.1 Introduction
Maritime security is defined as the protection of the maritime domain against threats such as piracy, armed robbery, smuggling, terrorism, and other illegal activities that undermine economic and strategic interests (Onuoha, 2018). In the context of Nigeria, maritime security is particularly significant due to the country's extensive coastline of over 850 kilometers and its dependence on seaports for the import and export of goods (Ibrahim, 2020). The Nigerian maritime sector is a major contributor to national development, facilitating international trade, revenue generation, and employment. However, insecurity in Nigerian waters is reported to pose a serious threat to these economic activities. Incidents of piracy, oil theft, and maritime armed robbery are observed to disrupt trade operations, increase operational costs, and erode investor confidence (Akinola, 2019).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of the Study
Maritime security in Nigeria has evolved significantly over the decades, shaped by both domestic and international factors. According to Onuoha (2018), the protection of Nigeria's territorial waters became a strategic priority following the discovery of oil in the Niger Delta in the late 1950s and early 1960s. The influx of oil exploration activities increased the economic importance of maritime routes, making them vulnerable to criminal activities such as piracy, smuggling, and illegal oil bunkering.
The Nigerian Navy, established in 1956, was initially tasked with coastal defense and safeguarding shipping lanes. Ibrahim (2020) reported that during the early post-independence period, the Navy faced challenges related to limited equipment, training, and manpower, which affected its ability to provide comprehensive maritime security. Nevertheless, by the 1980s, the Navy expanded its operational capacity in response to rising maritime threats, asserting that the security of maritime trade routes was integral to economic stability.
Maritime security is central to the economic stability and growth of nations with significant coastal and maritime activities. According to Onuoha (2018), maritime security involves the protection of shipping routes, ports, and other maritime infrastructures from threats such as piracy, smuggling, armed robbery, and terrorism. The maritime sector is reported to facilitate international trade, generate revenue, and create employment opportunities, making its security a critical aspect of national development (Onuoha, 2018).
In Nigeria, the maritime domain is a crucial conduit for trade, with the ports of Lagos, Port Harcourt, and Warri being vital for the import and export of goods. Ibrahim (2020) asserted that the prevalence of maritime insecurity, particularly piracy and oil theft in the Gulf of Guinea, negatively impacts the confidence of investors and business operators. High operational costs, disrupted supply chains, and increased insurance premiums are reported to be direct consequences of these security challenges.
Akinola (2019) stated that the Navy is responsible for patrolling maritime routes, conducting surveillance operations, and collaborating with regional and international partners to mitigate threats. However, lapses in intelligence, inadequate manpower, and limited technological resources are reported to constrain the effectiveness of these security measures. Onuoha (2018) affirmed that such gaps in maritime security enforcement often lead to delayed responses to criminal activities, which in turn reduces business confidence.
Furthermore, scholars contend that business confidence is closely linked to the perception of risk in maritime operations. Investors and shipping operators are more likely to engage in trade activities when maritime routes are secured, as secure environments minimize potential losses and enhance operational predictability (Ibrahim, 2020). It is reported that sustained maritime insecurity undermines investor trust, discourages foreign direct investment, and limits economic growth potential in Nigeria's maritime sector (Akinola, 2019). This study is set against the backdrop of the critical need to understand how the Nigerian Navy's maritime security measures influence business confidence.
1.3 Statement of Problems
Investigation revealed that business stakeholders frequently express concerns about the safety of maritime logistics and shipping lanes, which directly impacts the volume and efficiency of trade within Nigerian waters. On the other hand, despite the Nigerian Navy's ongoing efforts to patrol and secure territorial waters, gaps in maritime security still exist. Factors such as inadequate surveillance infrastructure, limited manpower, and delayed response to incidents are observed to weaken the effectiveness of security measures (Ibrahim, 2020).
Furthermore, the perception of risk in maritime operations is reported to influence insurance premiums and contractual negotiations, making maritime ventures less attractive to both domestic and foreign investors (Akinola, 2019). The inconsistency in security enforcement in intelligence sharing between agencies is stated to exacerbate these challenges, creating an environment where businesses are hesitant to expand or fully commit resources. It is against this backdrop that this study seeks to investigate the role of maritime security in enhancing business confidence in Nigeria.
1.4 Aim and Objectives of the Study
The primary aim of this study is to assess the impact of maritime security on business confidence in Nigeria, focusing on the operational role of the Nigerian Navy.
The specific objectives of this study are:
- To examine how the Nigerian Navy's maritime security measures influence business confidence in Nigeria.
- To identify the challenges faced by the Nigerian Navy in ensuring maritime security.
- To evaluate the effectiveness of current security policies and practices on maritime trade and investment.
- To provide recommendations that will enhance maritime security and promote business confidence.
1.5 Research Questions
Based on the stated objectives, the study seeks to answer the following questions:
- How do the Nigerian Navy's maritime security measures influence business confidence in Nigeria?
- What are the major challenges faced by the Nigerian Navy in ensuring maritime security?
- How effective are the current security policies and practices in supporting maritime trade and investment?
- What strategies can be implemented to enhance maritime security and promote business confidence?
1.6 Significance of the Study
The outcome of this research will be valuable to business operators, shipping companies, and investors who rely on secure maritime routes for trade and commerce. Also, this study will support the Nigerian Navy and other security agencies in understanding the effects of their operations on business confidence.
Furthermore, the research will contribute to safer shipping routes, reduced business risks, and improved investor trust. In addition, the study will contribute to academic knowledge by providing a detailed examination of the relationship between maritime security and business confidence.
Lastly, the study will serve as a reference for future research on maritime safety, security policies, and their impact on economic development.
1.7 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: Maritime security provided by the Nigerian Navy has no significant effect on business confidence in Nigeria.
- H1: Maritime security provided by the Nigerian Navy significantly enhances business confidence in Nigeria.
1.8 Scope of the Study
This study focuses on the role of maritime security in enhancing business confidence within Lagos State, focusing on the Nigerian Navy's operational activities.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- 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.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Maritime Security: Refers to the measures taken to safeguard vessels, ports, and maritime infrastructure against criminal activities, piracy, and terrorism (Onuoha, 2018).
Business Confidence: The level of trust and optimism investors and business operators have in the stability and safety of the business environment (Akinola, 2019).
Nigerian Navy: The naval branch of the Nigerian Armed Forces, responsible for defending Nigeria's territorial waters, securing maritime trade routes, and supporting national security (Ibrahim, 2020).
Piracy: Acts of robbery or criminal violence at sea, targeting vessels and cargo (Onuoha, 2018).
Maritime Trade: The transportation of goods and services via sea routes, essential for international commerce and economic development (Akinola, 2019).
…
