Importance of Port-Supply Chain Integration in enhancing Manufacturing Capacity Utilisation (MCU) in Nigeria
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Date
2023-12
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Journal of Economics and Allied Research
Abstract
The utilisation of manufacturing capacity at 57% holds significant implications for Nigerian
consumers. This paper explores the impact of integrating port supply chains on manufacturing
capacity utilisation in Lagos and Ogun States, Nigeria. Secondary sources were employed to
collect data on container port throughput (PT) and manufacturing capacity utilisation (MCU) from
the Nigerian Port Authority and the Manufacturers Association of Nigeria between 2014 and 2021.
The study reveals a positive relationship between Tin Can Port PT and Food and Beverages MCU,
indicating that a unit change in Tin Can Island port throughput results in a 35.4% increase in
manufacturing capacity utilisation. Conversely, a percentage change in Apapa port throughput
only leads to a 0.08% increase in manufacturing capacity utilisation. The findings suggest that port
supply chain integration can enhance MCU, provided the policy is tailored to specific ports. The
study emphasises the pivotal role of effective policies in boosting Nigeria's manufacturing capacity
utilisation, particularly in the food and beverages sector.