Nigeria needs $10bn blue finance to unlock coastal economy potential
Nigeria’s blue economy requires about $10 billion in investment over the next ten years to fully harness opportunities in shipping, fisheries, aquaculture, marine tourism, coastal infrastructure, renewable energy and ocean research. The current federal budgetary allocation of 10.5 billion naira is grossly inadequate, leaving a huge funding gap that public finance alone cannot fill. Despite a comprehensive policy framework approved by the Federal Government in May 2025, mobilising capital remains a challenge. The country spends roughly $1.2 billion annually importing fish to cover a domestic supply shortfall of about 2.2 million metric tonnes, draining foreign exchange earnings. With over 90 percent of Africa’s trade moving by sea, Nigeria’s Atlantic coastline offers a chance to become a dominant maritime logistics hub, supported by initiatives like the regional Sealink Initiative promoted by NEXIM. Experts say blue finance—instruments such as blue bonds, blue loans and debt‑for‑nature swaps—must become the preferred option for capital mobilisation. They recommend embedding blue finance in national development plans, building stakeholder capacity, and strengthening performance metrics and transparency standards. While Nigeria has the financial liquidity and growing demand for blue bonds, it lacks a de‑risked operational ecosystem; no domestic blue bond market exists yet. To unlock the sector, policymakers should consider issuing sovereign or corporate blue bonds, encourage blended finance mechanisms, and leverage concessional capital from development banks to de‑risk investments.