Evaluation of the Effects of Port Pricing Policy on Shipper’s Demand for Port Services in Nigeria

The study evaluated the effects of port pricing policy on shipper’s demand for port services in Nigeria from 1977 to 2022. The objectives of the study among other are to determine the influences of harbor dues charged by the Nigerian Port Authority (NPA) per tonnage of shipping import trade handled in the ports and to ascertain the relationship between harbor dues charged by the NPA and the trend of shipping export delivered by the shippers through the Nigerian seaports over the years. The study obtained historical data on harbor dues charged by the Nigerian port per ton of shipping trade handled in the port, the tonnage of shipping import and shipping export trade handled by the ports over the 45 years covered in the study from the Nigerian ports authority. While the harbor dues charged per tonnage of trade was used as proxy for port pricing policy, the tonnages of shipping import and export trade handled were used to represent shipper’s demand for port services over the period. Regression analysis method was used in each case to analyze the data obtained in order to provide answers to the research question. It was found that, it was found that, there is a significant impact of port pricing policy on shippers’ demand for port services in Nigeria. Increase in harbor dues (port charges) paid by shippers (importers and exporters) between 1977 and 2022 saw an equally increasing trend in patronage to port services by the shippers over the period.