Energy Price, Maritime Trade and Economic Growth in Nigeria

Abstract

Energy and maritime sectors are vital drivers of economic performance in resource-rich countries like Nigeria. However, fluctuations in energy prices and inefficiencies in maritime trade infrastructure pose challenges to sustainable growth. This study examined the relationship between energy prices, maritime trade, and economic growth in Nigeria. Data from 1990 to 2024 were used in the study which were estimated using the error correction technique. The findings showed that energy price has a positive and significant effect on economic growth in the longrun and short run. Maritime trade positively affect economic growth in the longrun and short run but not significant. There is a strong adjustment mechanism ensuring economic growth realign with its long-term equilibrium after a shock in the short-term based on the error correction term been negative and statistically significant. The study recommends that policymakers should prioritize investment in energy infrastructure to ensure stable and affordable energy supply. Emphasis need for diversifying energy sources and enhancing efficiency in energy distribution. The long run and short run positive effect of maritime trade on economic growth suggests that improving port infrastructure and enhancing maritime logistics can boost economic performance. Strategic development of seaport facilities and trade corridors for national economic priority.