Evaluation of the Relationship between Maritime Piracy and Port Revenue

The study investigated the relationship between maritime piracy and sea robbery on revenue generated in the Nigerian ports between 1995 and 2013. The study used secondary data sourced from the Nigerian ports authority, and the International Maritime Bureau (IMB) on the port revenue, levels of pirate attacks against ships in local; and global waters, level of cargo pilferages in ports and used for the study. It used multiple regression analysis method to analyze the dataset obtained using port revenue as the dependent variable while global attacks, local attacks and volume of cargo pilfered were used as independent variables. It was found that there is significant relationship between port revenue generated in the Nigerian ports and level of maritime piracy and sea robbery against ships in Nigeria waters. The result indicates that for every unit increase in pirate attacks against ships trading in global waters, revenue generated in the Nigerian ports increased by 60872.47 units. Similarly, for each unit increase in local attacks against ships in Nigerian waters, the revenue generated in the ports increased by 548297.8 units and for a unit increase in level of insecurity induced cargo pilferage in the seaports, port revenue decreases by 562,96 units. It was also found that this is a significant relationship between revenue generated in the ports and maritime piracy and sea robbery against ships in the maritime industry.