The impact of port privatization on economic development in Nigeria Essay

The impact of port privatization on economic development in Nigeria - Essay Example This however does not necessarily mean that the government stays away from the entity (Obed & Emeghara, 2012). It sticks to its role as a regulator of laws regarding the activities of the body. Port, privatisation in relation to ports, has two degrees of variation (Ogwezzy & Bello, 2013). One is comprehensive privatisation where the successor company becomes the sole owner of the entire ports and all the land and water areas including assets within the port. This is the same as selling the whole port to a private company (Ogwezzy & Bello, 2013). Partial privatisation is a scheme where only part of the assets and activities of a public port are transferred to the private sector. An example of this is where the government sells its existing berths to a private company or where the government concedes with a private company to build and operate a specialised port facility (Ogwezzy & Bello, 2013). Privatisation, therefore, expands the role of the private sector in the ownership and development of existing port facilities, together with developing new services. Economic development is the progress in the economy which usually involves the change of policies, adoption of new technologies and improvement of living standards. It is measured by the level of economic productiv ity. Economic productivity is the ratio of outputs to a volume measured by inputs to a volume measured by inputs. The growth of productivity of ports means that they can produce more output from the same level of input given before (Ogwezzy & Bello, 2013). Development and operation of ports in Nigeria started in the middle of the 19th century. Efforts to provide facilities for vessels using the ocean began with the opening of Lagos Lagoon in the early 1990 (Nwanosike, Tipi & Warnock-Smith, 2012). Development of the Apapa Port, which is the South West of Nigeria was allotted in 1913 and started in 1921. In 1913, the