Nigerian Journal of Banking and Financial Issues (NJBFI)

Blue Economy And Sustainable Development: Empirical Evidence From Nigerian Environment

Abstract

This study assessed how blue economy affected sustainable development in the Nigerian environment from 1981 to 2022. Due to the constraint of data availability, the study examined the effect of two blue economy variables; revenue from fishing as well as revenue from water transport, on sustainable development from two perspectives-economic and health (per capita income and life expectancy respectively).

The study used the fully modified ordinary least squares (FMOLS) regression technique to estimate the two models using data collected from the Central Bank of Nigeria’s Statistical Bulletin.

In the first model, the study found that revenue from fishing had a significantly positive effect on per capita income proxied by GDPCI (coeff. = 5.733343, p = 0.0000<0.05) while revenue from water transport also affected per capita income positively but insignificantly (coeff. = 220.7889, p = (0.0941>0.05). In the second model, findings revealed that revenue from fishing had a positive and significant effect on life expectancy (coeff. = 0.001847, p = 0.0000<0.05) while the effect of revenue from water transport on life expectancy was positive but insignificant (coeff. = 0.205509, p = 0.6969>0.05).

Finally, the study found out that per capita income and fishing revenue had no significant causal relationship, while revenue from water transport had a significant unidirectional causality with per capita income. Furthermore, while fishing revenue had a bidirectional causality with life expectancy, revenue from water transport had a unidirectional causality with life expectancy.

The study thus recommended increased investment through specific policies and initiatives, necessary support for research and development in innovative fishing technologies by the government and enhanced infrastructure for improved water transport in Nigeria.