Harnessing The Blue Economy for Economic Diversification in Nigeria: Opportunities and Policy Imperatives

Abstract: Nigeria's reliance on crude oil has created an economic vulnerability, and as such, economic diversification has become one of the most urgent policy imperatives. This study examines the potential of the blue economy as a means for economic diversification in Nigeria over the period. This study utilised secondary data from the National Bureau of Statistics and other data sources such as the Central Bank of Nigeria, Nigerian Ports Authority, FAO Fisheries Database, UNCTAD, and World Bank indicators for evaluation. Descriptive statistics, correlation, and regression analyses were utilised to determine the contributions made by maritime trade, fisheries and aquaculture, tourism, and employment. The results indicate that non-oil GDP rose from 85.6 per cent in 2010 to 90.3 per cent in 2024, and confirmed the strong positive correlations between tourism, fisheries, maritime trade, and employment sectors of the blue economy and economic diversification. Tourism was the most significant contributor, followed by maritime trade, and despite fisheries revealing a weaker but significant impact on economic diversification. Regression results verified the contribution of the blue economy sectors to economic diversification. The study concludes that the blue economy in Nigeria has the capacity to address and improve its significant dependence on oil and fossil fuel, however, challenges related to infrastructure, governance, and financing need to be addressed. Policy implications include the need for investment in the modernization of strategic national port infrastructure, national fisheries development programs and projects, proactive tourism marketing campaigns, innovative financing programs utilizing blue bonds, better policy coordination between the various sectors of the blue economy, and improvement in human capital development.