IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 3 2017

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Financial Performance of Some Classes of Trawling Vessels in Nigeria: A Comparative Analysis

J. A. L. Effiong, Oga, I. O., & Frank, N. N.

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Abstract

The study compared financial performance between different classes of trawling vessels. Data was collected from a cross section of 30 small and large vessels, 30 fishing and shrimping vessels and also 30 foreign owned and Nigerian owned vessels. Comparison was done according these paired groupings. Financial performance was assessed using Return on Investment (ROI) while comparison of financial performance between different classes of vessels was facilitated using t-test statistics for paired samples. Results from the study revealed a significant difference in the mean value of financial performance for small and large vessels showing that investment in large vessels is more viable than their small vessel counterparts. Smaller vessels encounter high cash outflows with relatively lower revenue resulting from lower fishing power in contrast with their larger counterparts who in addition to incurring high cash outflows earn higher revenue in view of their higher fishing power. The study also showed that the financial performance for shrimping vessels were significantly higher than that of fishing vessels at the 5 per cent level (p<0.05). This is attributed to the fact that products of shrimping vessels (shrimps) are mainly for export and commands high value in international market relative to products of fishing vessels (fish) which are for domestic market with attendant lower prices. The financial performance of foreign owned and operated vessels was approximately 20% higher than their Nigerian owned counterparts and is statistically significant at the 5 per cent level of probability. This is premised on the fact that foreign owned vessels are newer and equipped with sophisticated technology for fish detection and capture relative to Nigerian owned vessels which are as old as 20 years and which attracts higher repair and maintenance costs. This accounts for domination of marine capture fisheries by foreigners. The study recommends urgent implementation of the Cabotage

keywords:

Vessels, Trawling, Performance, Investment, Fishing, Shrimping, Financial

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