Study on the Effect of Maritime Insecurity on Shipping Business within the Gulf of Guinea in Africa

Abstract

This research was conducted in order to expose the extent to which activities of Maritime Piracy and armed robbery (MPAR) affects the movement of ships between the Gulf of Guinea and the other parts of the world. Secondary data were collected from websites of International Maritime Bureau and The World Bank from 2007 to 2018. Data obtained were analysed using descriptive statistics, tables and graphs with the aid of Microsoft Office Excel and Minitab statistical software. Results of the analysis indicated that, the number of vessels, cargo throughput and LSCI showed no fluctuations across the 12 years under study. However, 2014 has the highest record in each of the three variables and that can be seen to have a direct relationship with the drop in MPAR and preparation of the 2015 general elections in the country. Again, 2018 has the lowest record of 2,008 vessels, 35.9 million cargo throughput, while having the highest frequency of MPAR. That MPAR affects largely the Number of Ships and Cargo Throughput into the region seaports as compared to the lesser effect it has on LSCI. On the other hand, strong positive correlations were found between Number of Vessels, Cargo Throughput and LSCI within the Gulf of Guinea. It is therefore, recommended that all countries within the region should put in effective measures that would reduce to the barest minimum cases of maritime piracy and armed robbery, thus encourage more ships to come into the region to load or discharge cargoes, hence raising the standard of living of the people.