An Analysis of Investment Trends, Innovation and its Impact on Cabotage and Local Content Regime: Nigerian Experience from Businesses in Oil and Gas and Maritime Industries
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Published:
Jul 1, 2024
Keywords:
Cabotage Law, Investment Trends, Innovation, Local Content Law, Nigeria
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Abstract
This study looks into how Nigeria's oil and gas and maritime industries are affected by laws against cabotage and local content, with particular attention to employment rates, investment trends, technological developments, and communication. The study adopts the quantitative survey methodology. The target population comprises 358 oil and gas and maritime industries’ employees. Stratified random sampling was adopted to size the population into strata. Data was collected through a closed-ended structured questionnaire. The study used the primary and secondary data sources. The study examines the effects of local content and cabotage regulations in the two sectors, evaluating theories about employment rates, innovation, and investment trends. The result showed that there was a positive and significant effect of investment trend and innovation on cabotage law in the oil and gas industry in Nigeria (t-statistics (43.312) > critical value (0.000). Also, the study revealed that there was a positive and significant effect of investment trends and innovation on local content law in the oil and gas and maritime industry in Nigeria (t-statistics (48.491) > critical value (0.000). The findings show a strong positive correlation between compliance with these regulations and investment patterns. Turning barriers/obstacles into opportunities has proven to need effective innovation. The study recommends that policy improvement, improved innovative capacity, industry cooperation, monitoring, and enforcement will help improve compliance with the regulations and enhance investment patterns/innovation.
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How to Cite
Adeyemi, Omolade S., and Timilehin O. Olubiyi. 2024. “An Analysis of Investment Trends, Innovation and Its Impact on Cabotage and Local Content Regime: Nigerian Experience from Businesses in Oil and Gas and Maritime Industries”. ABUAD Journal of Social and Management Sciences 5 (2), 285-301. https://doi.org/10.53982/ajsms.2024.0502.04-j.
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References
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https://doi.org/10.46827/ejhrms.v5i2.1077
Osemwegie, A. A (2019). An analysis of the challenges hindering the Nigerian cabotage act. https://commons.wmu.se/all_dissertations
Arokodare M.A, Falana, R. B. & Olubiyi, T. O. (2023). Strategic agility, knowledge management and organisational performance in a post-pandemic era: A mediation analysis. Journal of Family Business and Management Studies, 27, 83-108
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https://doi.org/10.3390/su152115228
Dike, A. R., Obioma, O. P., Ezema, N. J. C., Nnani, J. O., & Chinelo, E. I. (2023a). Legal Framework for Cabotage Regime in Nigeria: Making a Case for Reform Initiatives. International Law Research, 12(1), 115. https://doi.org/10.5539/ilr.v12n1p115
https://doi.org/10.5539/ilr.v12n1p115
Dike, A. R., Obioma, O. P., Ezema, N. J. C., Nnani, J. O., & Chinelo, E. I. (2023b). Legal Framework for Cabotage Regime in Nigeria: Making a Case for Reform Initiatives. International Law Research, 12(1), 115. https://doi.org/10.5539/ilr.v12n1p115
https://doi.org/10.5539/ilr.v12n1p115
Edih, U. O., Igemohia, F., & Faghawari, N. (2022). The effect of optimal port operations on global maritime transportation: a study of selected ports in Nigeria. Journal of Money and Business, 2(2), 173-185. https://doi.org/10.1108/jmb-07-2022-0037
https://doi.org/10.1108/JMB-07-2022-0037
Etuk, E. U. (2022). A Critical Review of The Legal Framework for Local Content Development in Nigeria. https://ssrn.com/abstract=4558752
https://doi.org/10.2139/ssrn.4558752
Makinde, G. O., Olubiyi, T.O. & Okoro, L. U. & Abosi, E. (2023). Assessing strategic thinking and teaching hospital performance post-pandemic: A survey from Nigeria, Asian Journal of Engineering, Social and Health, 2(10),1196- 1207
https://doi.org/10.46799/ajesh.v2i10.151
Nigerian Oil and Gas Industry Content Development ACT 2010 Act No. 2 PART I-Nigerian Content Development in Oil and Gas Industry, (2010).
Nwekeaku, C., & Atteh, J. (2016). Cabotage Act and the Challenges of Nigerian Shipping Lines in Sub-Sahara Africa. Advances in Social Sciences Research Journal, 3(5). https://doi.org/10.14738/assrj.35.1988
https://doi.org/10.14738/assrj.35.1988
Nwozor, A., Olanrewaju, J. S., Adedire, S. A., & Lawal, E. E. (2020). Reform in a Limbo: The politics and politicisation of reforms in Nigeria's petroleum sector. International Journal of Energy Economics and Policy, 10(4), 184-193. https://doi.org/10.32479/ijeep.9085
https://doi.org/10.32479/ijeep.9085
Obiri, K. A., & Bjeirmi, B. (2019). A Comparative Analysis of Local Content Policies in the North Sea and the Gulf of Guinea Regions. Journal of Scientific Research and Reports, 1-13. https://doi.org/10.9734/jsrr/2019/v25i530195
https://doi.org/10.9734/jsrr/2019/v25i530195
Okon, I. (2019). The impacts of cabotage law implementation on Nigeria's indigenous shipping industry: A study of the Onne Sea Port, Rivers State, Nigeria. www.isdsnet.com/ijds
Olatunji Ajiye LLB, S. (2013). Nigerian Cabotage: Its Policy, Prospects and Challenges. In Journal of Economics and Sustainable Development www.iiste.org ISSN (Vol. 4, Issue 14). Online. www.iiste.org
Coastal and Inland Shipping (CABOTAGE) ACT, 2003, 1 (2003). Olubiyi T. O. (2024). An investigation of the role of airline safety management and its impact on passenger satisfaction: a study of commercial airline businesses in Nigeria. Journal of the Management Sciences, 60(4). Retrieved from https://journals.unizik.edu.ng/jfms/article/view/3396
Olubiyi, T.O. (2023a). Unveiling the role of workplace environment in achieving the Sustainable Development Goal Eight (SDG8) and employee job satisfaction post-pandemic: Perspective from Africa" Revista Management & Marketing Craiova, XXI (2), 212-228.
https://doi.org/10.52846/MNMK.21.2.02
Oluwatosin, L. (2014). RADAR Has the Nigerian oil and gas Local Content Development policy had any impact on the indigenisation of employment and job creation? A Stakeholder Analysis.
Onuoha, A., & Nnubia, O. C. (2004). Nine Evaluating The Impact Of International Law On Cabotage And Petroleum Industry In Nigeria. African Journal, 7, 107-120. http://www.duharine.or/leial
Ovadia Jesse. (2013). Measurement And Implementation Of Local Content In Nigeria-A Framework For Working With Stakeholders To Increase The Effectiveness Of Local Content Monitoring And Development.
Rapu, S. C., Sanni, H. T., Akpan, D. B., Ikenna-Ononugbo, A. A., Yilkudi, D. J., Musa, A. U., Golit, P. D., Ajala, K., & Ibi, E. H. (2013). Fiscal Incentives in Nigeria: Lessons of Experience Central Bank of Nigeria.
Scholarworks, S., & Ikpogu, N. M. (2021). Barriers to Technology Adoption Among Maritime Industry Barriers to Technology Adoption Among Maritime Industry Stakeholders in Nigeria Stakeholders in Nigeria [Doctor of Philosophy Management , Walden University]. https://scholarworks.waldenu.edu/dissertations
Scholarworks, S., & Onwuka, U. (2021a). Strategies for Improving Local Content Development in Nigeria Oil Strategies for Improving Local Content Development in Nigeria Oil and Gas Industry and Gas Industry [Walden University]. https://scholarworks.waldenu.edu/dissertations
Scholarworks, S., & Onwuka, U. (2021b). Strategies for Improving Local Content Development in Nigeria Oil Strategies for Improving Local Content Development in Nigeria Oil and Gas Industry and Gas Industry [Doctor of Business Administration, Walden University]. https://scholarworks.waldenu.edu/dissertations
Team - PwC Indonesia, R. (2023). Oil and Gas in Indonesia: Investment and Taxation Guide. www.pwc.com/id
Ukabi, O. B., Uba, U. J., Ewum, C. O., & Olubiyi, T. O. (2023). Measuring Entrepreneurial Skills and Sustainability in Small Business Enterprises Post-Pandemic: Empirical Study from Cross River State, Nigeria. International Journal of Business, Management and Economics, 4(2), 132-149
https://doi.org/10.47747/ijbme.v4i2.1140
UNCTAD. (2013). Local Content Requirements and The Green Economy.
United Nations Conference on Trade and Development. (2023). Review of Maritime Transport 2022. United Nations.
Wabote Simbi Kesiye. (2022). LocalContentDigestH220. 1-80.