Logistics Costs for Seaborne Trade in Nigeria: An Empirical Study

Abstract

Seaports are fundamentally connectivity points in the global economic system, especially container ports, which are supportive and well-connected to major global trade routes. Regular and dependable services from shipping are critical to lowering the costs of trade, particularly transportation expenses, integrating supply chains, and enabling global trade. For Nigeria, trade costs seem to be an impediment to international trade development, and improving trade logistics performance is crucial to enhancing nations' trade acceptability. Field surveys were conducted in some selected seaports and outward environments, and hypotheses were examined in order to assess the cost-effectiveness and efficiency of the ports' facilities and activities. The result revealed that logistics costs, customs effectiveness, quality of infrastructure, government policies, and logistics service deliveries have significant effects on the development of seaborne trade in Nigeria. Therefore, institutional improvements will lower logistics costs, providing opportunities to expand seaborne trade, and benefit consumers worldwide through competitive freight costs.