IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 11 NO. 3 2025
DOI: 10.56201/ijssmr.vol.11no3.2025.pg.118.141

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Exchange Rate Dynamics and Port Operations in Nigeria

Ndalu, ThankGod Chukuemeka, Ph.D, Igwe, John Charly, PhD, FCA, Nkem, Itoro Gregory

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Abstract

Efficient port operations are essential for boosting Nigeria’s economic growth, as they directly affect sectors like manufacturing, oil and gas, and agriculture. Evaluating the impact of exchange rate fluctuations on cargo throughput can provide insights into improving economic outcomes; this therefore has necessitated this study. The study examines the relationship between exchange rate dynamics and port operations in Nigeria. Secondary data collection method was used and Ex - post-facto research design was adopted to achieve the objectives of the study. The study draws its data from the annual reports of the Nigerian Port Authority and World Bank Statistical Bulletin with focus on information from 1997 – 2023 for 27 years period. The ARDL Bound Test approach was adopted in estimating the relationship between the dependent and independent variables. The study findings indicate that exchange rate dynamics are not primary drivers of port operations in Nigeria. The study findings further show that there is no positive significant relationship between exchange rate and cargo throughput in Nigeria; there is positive and statistically insignificant relationship between interest rate and cargo throughput in Nigeria and inflation rate have negative and insignificant relationship with cargo throughput in Nigeria. Based on the findings, the study recommends that port authorities should enhance port infrastructure, automation, and efficiency to improve cargo handling capacity and throughput, regardless of exchange rate dynamics. Finally, the government should focus on maintaining a stable macroeconomic environment, managing inflation through sound fiscal and monetary policies, and ensuring that inflation does not spiral to levels that could hurt port-related businesses.

keywords:

Exchange rate, Interest rate, Inflation rate, Port operations, Cargo

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