Performance of Air Cargo Export to Promote Economic Diversification in Nigeria

Abstract

The increasing growth in global trade is promoting economic diversification through efficient air cargo logistics. The overdependence of Nigeria on mono-product export, mainly crude oil, hinder the successful implementation of economic diversification policy. However, air cargo export plays a significant role in any successful economic diversification policy. Despite the importance of air export of cargo to the economy, literature is scarce on the role of air cargo export in economic diversification studies. This chapter assesses the performance of air cargo export by highlighting its inherent opportunity to support economic diversification in Nigeria. The analysis draws on air cargo export data by volume, types, and airline market share in Nigeria. Regression analysis established a significant relationship between Nigeria's gross domestic product (GDP) and air cargo export. Johansen cointegration test showed that both short and long-run cointegration exists between air cargo and GDP in Nigeria. An increasing trend in Nigeria's air cargo export volume indicates the significance of air cargo export to support economic diversification policy in Nigeria. Airlines market shares have British Airways, Virgin Atlantic, Emirates, and Saudi Air dominating the exportation of cargo in Nigeria. Agricultural products dominate the air cargo export with 34.6% volume, followed by manufacturing products (23.6%). An all-inclusive policy that promotes international trade for the economic emancipation of Nigeria through diversification into agriculture and manufacturing sectors is necessary.

Citation

Adenigbo, A.J. and Simon-Oke, O.O. (2022), "Performance of Air Cargo Export to Promote Economic Diversification in Nigeria", Nolan, J. and Peoples, J. (Ed.) The International Air Cargo Industry (Advances in Airline Economics, Vol. 9), Emerald Publishing Limited, Leeds, pp. 283-302. https://doi.org/10.1108/S2212-160920220000009012