FISCAL POLICY AND MARITIME TRADE PERFORMANCE IN NIGERIA

Abstract

The maritime sector represents a critical, under-exploited avenue for economic diversification in Nigeria 
given the nation's continued dependence on crude oil earnings. This study investigates the fiscal-maritime 
nexus by examining the effect of fiscal policy instruments on maritime trade performance between 1994 
and 2024. Adopting an Ex-Post Facto research design, the study utilizes Ordinary Least Squares (OLS) to 
evaluate the impact of government capital expenditure, customs duties, non-oil tax revenue, and the 
exchange rate on seaborne trade value. Secondary data were sourced from the Central Bank of Nigeria, 
Nigerian Ports Authority, National Bureau of Statistics, and Federal Inland Revenue Service. Empirical 
results suggest that government capital expenditure and customs duties exert positive and statistically 
significant effects on maritime performance. However, exchange rate depreciation and bureaucratic 
bottlenecks significantly hinder the sector's full trade potential. The study concludes that a deliberate fiscal 
policy regime focused on port infrastructure renewal and tariff rationalisation is essential for economic 
diversification. Recommendations include increasing efficiently utilized capital allocations, stabilizing the 
exchange rate, and strengthening port institutions.