This study investigated the implication of illegal oil trading on the Nigerian maritime industry covering the period between 1995and 2012. Data were mainly derived from the records of the Nigeria National Petroleum Corporation (NNPC), the Nigeria Maritime Administration and Safety Agency (NIMASA) and the Central Bank of Nigeria. The data sets were analyzed with descriptive and inferential statistics. The hypothesis was tested with a linear regression model with ordinary least square properties. Thus, a multiple regression approach was adopted, with the cargo throughput (CARPUT) as the dependent variable. The study revealed that a significant relationship exists between illegal oil trading and the Nigerian maritime industry. Other findings are that the volume of oil theft as an explanatory variable, in most cases met the a priori expectation with its negative coefficient, together with the one-year lagged variables of the dependent variables, was statistically significant in terms of contributions to the dependent variable. The study concluded that illegal oil trading has negative effects on the Nigerian maritime industry. The paper recommended that law enforcement authorities should brace up to the challenge and that adequate and effective sanctions be instituted against offenders to serve as a deterrent.
Keywords: Illegal oil trading, lagged variables, sanctions, offenders, a priori expectation, maritime industry
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