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Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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EVALUATING THE IMPACT OF BLUE ECONOMY SECTOR ON 

NIGERIA'S ECONOMIC GROWTH 
 

Aienloshan Omo Obeamata and Eke Robert Ike PhD, FCA. 

Department of Accounting and Finance, College of Social and Management Sciences, Wellspring 

University Benin City, Edo State. 

E-mail: aieloshanomo@gmail.com and robbyeke19@yahoo.com 

Phone Number: 08035069365 and 08034712733 

DOI: https://doi.org/10.5281/zenodo.17122034 

 

Abstract: This study evaluates the impact of blue economy sectors on Nigeria’s economic growth 

over the period 1981–2024, using advanced econometric techniques to uncover long-run 

relationships. The study employs Fully Modified Ordinary Least Squares (FMOLS) and Johansen 

Cointegration Tests to assess the long-term contributions of these sectors to Nigeria’s Gross Domestic 

Product (GDP). Unit root tests confirm the stationarity of the data, while diagnostic tests such as the 

Breusch-Godfrey serial correlation LM test, White’s heteroscedasticity test, and CUSUM stability test 

validate the robustness and reliability of the estimated models. Empirical results reveal that all three 

blue economy sectors have a statistically significant and positive long-run relationship with Nigeria’s 

GDP, with marine biotechnology and renewable energy emerging as untapped but high-potential 

contributors. These findings are consistent with similar studies in other developing and coastal 

economies and highlight the need for strategic investment in these underutilized sectors. The findings 

underscore the necessity of policy frameworks that prioritize blue economy development as a 

pathway to economic diversification, sustainable growth, and environmental stewardship.  

KEYWORDS: Blue Economy, Maritime Transport Revenue, Coastal and Marine Tourism, Fisheries, 

Economic Growth 

 

SECTION ONE 

1. INTRODUCTION 

1.1 Background of the Study 

The blue economy encompasses the sustainable use of ocean resources for economic growth, improved 

livelihoods, and jobs while preserving the health of marine and coastal ecosystems. In recent years, it 

has gained significant traction as a viable growth frontier for many developing countries, including 

Nigeria, whose vast maritime domain remains largely untapped. Nigeria, with a coastline stretching 

over 850 kilometers and a sizable exclusive economic zone (EEZ), possesses immense potential to 

harness sectors such as fisheries, maritime transport, marine tourism, renewable ocean energy, and 

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American Research Journal of Economics, Finance and Management  
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

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marine biotechnology to drive inclusive economic growth. However, despite the strategic importance 

of these sectors, their actual contributions to national GDP have been insufficiently explored in a 

consolidated and empirical manner. 

The lack of empirical studies examining the relationship between blue economy sectors and Nigeria’s 

macroeconomic performance creates a significant research gap, especially given the increasing global 

interest in sustainable ocean-based development (Olaniyi and Okonkwo, 2023). While various 

government initiatives and policy frameworks have highlighted the importance of leveraging marine 

resources, these efforts are often hampered by limited data integration and fragmented sectoral 

planning. Moreover, studies focusing on Nigeria’s economy tend to prioritize traditional sectors such 

as oil and gas, agriculture, and manufacturing, with minimal focus on the ocean economy despite its 

long-term growth potential (Adebayo and Onuoha, 2022). 

As Nigeria diversifies away from hydrocarbons, understanding how each blue economy sector 

contributes to GDP growth becomes vital for evidence-based policymaking. Coastal and marine 

tourism, for example, remains underdeveloped despite Nigeria’s natural attractions, while maritime 

transport continues to be constrained by infrastructure challenges and policy inconsistencies 

(Nwachukwu and Ibrahim, 2024). Additionally, marine renewable energy and biotechnology, though 

nascent, represent promising future revenue streams. By applying rigorous econometric methods such 

as the FMOLS and Johansen cointegration test, this study aims to quantify the long-run impacts of 

these sectors on economic growth over the period 1981 –2024. It will provide policymakers with 

actionable insights into which areas of the blue economy hold the greatest potential for sustainable 

growth and economic resilience in the face of environmental and global economic uncertainties (Eze 

and Salami, 2025). 

1.2 Statement of the Problem 

Despite Nigeria’s extensive marine and coastal endowments, the country has yet to fully leverage the 

economic potential embedded within its blue economy sectors. Existing literature and national 

development strategies have largely centered on traditional economic drivers such as oil and gas, 

agriculture, and manufacturing, with limited empirical focus on marine-based sectors (Adebayo and 

Onuoha, 2022). This oversight persists despite mounting evidence from other coastal nations that 

investments in fisheries, maritime transport, marine tourism, and ocean-based renewable energy can 

significantly boost GDP, create jobs, and enhance environmental sustainability (UNCTAD, 2023). In 

Nigeria, although government policy documents acknowledge the blue economy as a frontier for 

economic diversification, there remains a significant research gap in quantifying the sectoral 

contributions of its components to long-run economic growth. 

Most studies that touch on the blue economy in Nigeria tend to be descriptive or policy-based, with 

insufficient econometric validation to support strategic planning (Olaniyi and Okonkwo, 2023). 

Additionally, there is a dearth of comprehensive time-series analyses that examine the dynamic 

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American Research Journal of Economics, Finance and Management  
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

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interactions between marine economic sectors and national output. This has led to a lack of empirical 

clarity on the causal and cointegrated relationships between Nigeria’s GDP and variables such as 

fisheries revenue, maritime transport income, marine tourism receipts, marine renewable energy  

output, and biotechnology exports. Without such insights, policymakers are left with little quantitative 

basis to prioritize investments or measure sectoral impact. 

Moreover, the fragmented nature of data collection across marine sectors further complicates efforts to 

understand their macroeconomic implications (Eze and Salami, 2025). As Nigeria grapples with 

economic volatility and the urgent need for diversification, research in this direction becomes crucial. 

This study seeks to bridge these gaps by applying robust econometric techniques to determine the 

extent to which blue economy sectors have influenced Nigeria’s GDP from 1981 to 2024, thereby 

guiding informed policy interventions and sustainable development planning. 

1.3 Aim and Objectives of the Study 

To evaluate the impact of key sectors within Nigeria’s blue economy on the country's Gross Domestic 

Product (GDP) from 1981 to 2024, using time-series econometric analysis. Other specific objectives are: 

1. To examine the effect of revenue from fisheries (capture and aquaculture) on the Gross Domestic 

Product (GDP) of Nigeria. 

2. To assess the impact of revenue from maritime transport on Nigeria’s Gross Domestic Product 

(GDP). 

3. To evaluate how coastal and marine tourism receipts influence the Gross Domestic Product (GDP) 

of Nigeria. 

1.4 Research Questions 

The study provides answers to the following research questions: 

1. To what extent does revenue from fisheries (capture and aquaculture) affect the Gross Domestic 

Product (GDP) of Nigeria? 

2. What is the impact of maritime transport revenue on Nigeria’s Gross Domestic Product (GDP)?  

3. How do receipts from coastal and marine tourism influence the Gross Domestic Product (GDP) 

of Nigeria? 

1.5 Research Hypotheses 

The study is guided with the following null hypotheses: 

1. H₀₁: Revenue from fisheries (capture and aquaculture) has no significant effect on the Gross 

Domestic Product (GDP) of Nigeria. 

2. H₀₂: Revenue from maritime transport does not significantly influence the Gross Domestic 

Product (GDP) of Nigeria. 

3. H₀₃: Coastal and marine tourism receipts have no significant impact on the Gross Domestic 

Product (GDP) of Nigeria. 

2. LITERATURE REVIEW 

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2.1 Conceptual Review 

2.1.1 Blue Economy 

The blue economy is a complex notion that refers to the sustainable use of ocean resources for economic 

growth, improved livelihoods, and job creation while also protecting the health of marine and coastal 

ecosystems (UNCTAD, 2022). It covers a wide range of industries, including fisheries, maritime 

transportation, tourism, renewable ocean energy, marine biotechnology, and the sustainable use of 

marine ecosystem services. The blue economy paradigm encourages economic development that is 

consistent with environmental sustainability and social inclusion, making it especially important for  

developing countries looking to diversify their economies. 

In Nigeria, the blue economy provides a largely untapped possibility that corresponds with government 

goals for economic diversification and resistance to oil reliance (Olawumi and Ibe, 2023). Nigeria has 

850 kilometers of coastline, a sizable Exclusive Economic Zone (EEZ), and access to a diverse marine 

ecosystem. These characteristics position the country to gain greatly from marine-based businesses, 

notably fisheries, maritime transportation, offshore renewable energy, and coastal tourism (Ezekwesili 

and Bala, 2024). However, fulfilling this potential needs intentional policy interventions, strategic 

infrastructure investments, and capacity building across critical institutions. 

The worldwide emphasis on the blue economy has increased as people become more aware of ocean-

related sustainability challenges, climate change adaptation demands, and the potential for job creation 

and poverty reduction in marine-based industries (FAO, 2021). Furthermore, sustainable ocean 

development is consistent with the United Nations' Sustainable Development Goals (SDGs), 

particularly SDG 14, which focuses on life below water. Integrating the blue economy into Nigeria's 

national development policies might assist reduce the country's reliance on hydrocarbons, promote 

inclusive growth, and improve environmental resilience. Thus, the notion serves as both an economic 

framework and a strategic avenue for accomplishing long-term national goals such as sustainable 

development, climate adaption, and socioeconomic change (UNDP, 2024). 

2.1.2 Maritime Transport Revenue 

Maritime transport revenue includes port charges, freight services, cargo handling, and shipping-

related operations. Maritime transport is an important part of the blue economy since it facilitates 

international commerce, improves connectivity, and stimulates auxiliary economic activity. For 

Nigeria, which has a long coastline and strategically positioned ports such as Apapa, Tin Can Island, 

and Onne, marine transport provides a tremendous opportunity for economic expansion and 

diversification. Nigeria's role as a vital West African marine center enhances the sector's potential. 

Despite these benefits, inefficiencies such as congestion, obsolete infrastructure, long turnaround 

times, bureaucratic bottlenecks, and policy inconsistencies have hampered optimal income production 

(Ameh and Uche, 2022). Furthermore, little investment in deep seaport expansion, poor multimodal 

transportation links, and insufficient port process automation all contribute to income leakages and 

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ISSN: 2836-9416 

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operational delays. To address these difficulties, new steps have been implemented to improve marine 

security and efficiency, including the Deep Blue Project, port concessioning changes, and the 

digitalization of customs and cargo clearing operations (Obi & Hassan, 2024). 

There is a growing realization that strong marine logistics and infrastructure are critical to lowering 

trade costs and increasing competitiveness in global markets. According to Ibrahim & Olayemi (2021), 

countries that have invested in effective marine transportation infrastructure have seen considerable 

increases in export growth, job creation, and fiscal income. Nigeria need a more integrated maritime 

strategy that integrates security, infrastructural, and regulatory goals in order to fully achieve the 

sector's potential. Evaluating maritime transport revenue is thus critical for understanding its role in 

Nigeria's economic diversification strategy and for aligning sectoral development with the Sustainable 

Development Goals (SDGs), particularly those related to industry, innovation, and infrastructure 

(UNCTAD, 2024). 

2.1.3 Coastal and Marine Tourism 

Coastal and marine tourism include recreational activities and services related to coastal locations, 

beaches, and marine ecosystems, such as beach tourism, diving, sport fishing, cruise travel, and cultural 

heritage experiences. It is an important section of the worldwide tourist business with the potential to 

greatly boost national economies, particularly in coastal nations such as Nigeria. Nigeria has significant 

potential for building a strong maritime tourism business due to its large coastline, natural attractions, 

and various coastal cultures. However, the industry is still underdeveloped due to infrastructure gaps, 

insufficient marketing, and security concerns in coastal areas (Nwachukwu & Ibrahim, 2024). 

Furthermore, the absence of coordinated tourist planning, uneven legislative frameworks, and 

insufficient investment in transportation and hospitality facilities continue to stymie the sector's 

growth. Many coastal settlements have yet to be connected to major economic areas, which limits access 

and discourages potential visitors. Furthermore, the lack of qualified personnel, tourist -specific 

training, and community-based tourism initiatives limits local engagement and ownership (Ibrahim & 

Okoye, 2023). Addressing these difficulties would need coordinated public-private partnerships, 

stronger regulatory frameworks, and deliberate marketing of Nigeria's coastal tourist assets on global 

platforms. 

Investments in eco-tourism, marine protection, and tourism-supporting infrastructure are critical for 

realizing economic advantages from this industry. According to Adebayo and Yusuf (2023), well-

managed seaside tourism may boost job generation, improve foreign exchange profits, and encourage 

local entrepreneurship. Furthermore, sustainable practices such as environmental legislation, 

community involvement, and marine resource conservation are critical for long-term success (Eze and 

Salami, 2025). Integrating marine tourism into national development objectives will boost GDP while 

simultaneously promoting environmental stewardship and inclusive growth. As global trends turn 

toward sustainable travel, Nigeria stands to benefit considerably from the organized development of its 

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American Research Journal of Economics, Finance and Management  
Volume 13 Issue 3, July-September 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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coastal and marine tourist sectors, establishing itself as a prominent participant in the West African 

tourism industry. 

2.1.6 Economic Growth 

Economic growth, generally assessed as an increase in a country's GDP, represents an economy's overall 

health and productivity. It is the result of a number of dynamic forces, including capital accumulation, 

labour productivity, technical innovation, industry diversity, and good governance. Over time, 

researchers have broadened growth models to include ecological and marine components, 

acknowledging the contributions of developing sectors like the blue economy to long-term and 

equitable development (Okonkwo & Ede, 2022). In Nigeria, where the economy is primarily reliant on 

crude oil exports, the need for a diverse economic framework has become critical. 

Economic instability caused by oil price variations, environmental deterioration, and global economic 

shocks has revealed the vulnerability of Nigeria's mono-resource economy. As a result, there is growing 

agreement on the importance of incorporating alternative development drivers including fisher ies, 

maritime transport, marine tourism, and marine biotechnology into national economic planning 

(Nwankwo & Akpan, 2021). These industries not only provide long-term revenue streams, but they also 

create jobs, encourage innovation, and enhance trade balances. 

The inclusion of blue economy sectors in national growth policies is consistent with the larger aims of 

the Sustainable Development Goals (SDGs), notably those pertaining to decent employment, 

innovation, climate action, and life below water (UNCTAD, 2024). Empirical research from other 

coastal nations suggests that targeted investments in these areas lead to long-term benefits and 

economic resilience. GDP is the dependent variable utilized in this study to examine the influence of 

Nigeria's blue economy sectors using time-series econometric modelling from 1981 to 2024. This 

technique allows for the identification of long-term correlations, trends, and sectoral impacts, which 

may then be used to guide evidence-based policies aimed at promoting sustainable growth, reducing 

poverty, and conserving the environment. 

2.2 Theoretical Review 

2.2.2 Sustainable Development Theory 

Sustainable Development Theory emphasizes meeting current development needs without 

compromising the ability of future generations to meet theirs (Brundtland Report, 1987). This theory 

is especially relevant to the blue economy, which seeks to balance economic exploitation of ocean 

resources with environmental sustainability. It underpins the study by framing the importance of 

integrating ecological constraints into economic planning. Nigeria’s fisheries, marine transport, and 

tourism sectors must operate within environmental limits to remain viable in the long term (UNCTAD, 

2022). Sustainable use of ocean resources, therefore, becomes not only a moral imperative but also an 

economic strategy. This theory helps justify the study’s emphasis on sectors that align economic growth 

with environmental conservation. 

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2.3 Empirical Review  

For instance, Adeola & Oladipo (2022) examined the role of maritime transport on Nigeria’s economic 

growth using quarterly time-series data from 1990 to 2020. Their study employed Vector Error 

Correction Models (VECM) and found a significant long-run relationship between maritime transport 

volume and GDP. However, the study focused solely on the transport component of the blue economy, 

ignoring other vital sectors like fisheries, coastal tourism, and marine biotechnology. This narrow scope 

limited the comprehensive evaluation of the blue economy’s potential. 

Similarly, Ugochukwu & Hassan (2021) analysed the contributions of fisheries to food security and 

national output using panel data from coastal states in Nigeria. The study applied panel least squares 

estimation and found that increased fish production positively impacted state-level GDP and 

employment. Nevertheless, their research was localized and did not consider national economic 

implications or how fisheries interact with other blue economy sectors. The methodology also did not 

address long-term macroeconomic dynamics, which are critical for policy formulation. 

In a broader regional context, Boateng et al. (2023) conducted a cross-country study on the impact of 

blue economy activities in West Africa. Using data from 2000 to 2020 and applying the Fully Modifie d 

Ordinary Least Squares (FMOLS) technique, they concluded that marine tourism and renewable energy 

had statistically significant effects on GDP in countries with active blue economy policies. However, 

Nigeria was not a major focus in the study, and the data used did not extend beyond 2020. Additionally , 

while the study was valuable in highlighting the regional relevance of blue economy sectors, it lacked 

depth in analysing individual sectoral performance within each country. 

Chijioke & Okafor (2024) investigated the potential of marine renewable energy in boosting Nigeria’s 

GDP. Using a computable general equilibrium (CGE) model, the study simulated various policy  

scenarios under which offshore wind and tidal energy could influence national output. The findings 

emphasized the need for investment in infrastructure and regulatory frameworks to unlock the sector’s 

potential. Despite the novelty of using CGE modelling, the study was based on assumed data due to the 

unavailability of actual production figures, which undermined the robustness of its conclusions. 

Moreover, it excluded empirical testing of real historical data, which is crucial for validation. 

Another notable study by Eze & Bala (2022) assessed the influence of coastal tourism on economic 

diversification in Nigeria. Using cointegration and Granger causality tests, they found a unidirectional 

causal relationship from tourism receipts to GDP, suggesting that coastal tourism could be a driver of 

economic growth. However, the study was limited to a ten-year data period (2010–2020) and failed to 

include controlling variables that could mediate the observed relationship, such as infrastructure 

development and environmental factors. 

Gap in Literature 

Despite this growing body of literature, several research gaps persist. First, most empirical studies have 

focused on isolated blue economy sectors, making it difficult to assess their collective impact on 

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American Research Journal of Economics, Finance and Management  
Volume 13 Issue 3, July-September 2025 

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Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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national economic performance. In the Nigerian context, studies have rarely analysed the combined 

effect of fisheries, marine transport, coastal tourism, within a unified econometric model. This limits 

policymakers' ability to prioritize investment across sectors. 

Second, the majority of studies utilize data ending in 2020 or earlier, missing out on recent 

developments and potential sectoral recovery trends following the COVID-19 pandemic. A more 

updated dataset covering the period up to 2024 is necessary for making relevant and timely policy 

recommendations, particularly as Nigeria aims to diversify its economy beyond oil. 

Third, methodological limitations are prevalent in earlier studies. Many employ simple linear 

regression, panel models, or bivariate causality tests without adequately accounting for endogeneity, 

cointegration, and long-term equilibrium relationships. This undermines the reliability of their findings 

for long-term policy planning. There is a clear need for studies employing more robust time-series 

methods such as Fully Modified Ordinary Least Squares (FMOLS), Johansen cointegration, and 

Autoregressive Distributed Lag (ARDL) bounds testing to analyse sectoral contributions more 

rigorously. 

3. METHODOLOGY 

3.1 Research Design 

This study adopts an ex-post facto research design, which is appropriate for investigating existing 

relationships among variables based on historical data. It involves analysing time-series data from 1981 

to 2024 to evaluate the long-run impact of blue economy sectors on Nigeria’s economic growth. This 

design enables the researcher to use econometric models to identify cause-effect relationships without 

manipulating the variables. 

The population for this study comprises all yearly macroeconomic indicators related to Nigeria’s blue 

economy and GDP between 1981 and 2024. This includes data on fisheries revenue, maritime transport 

revenue, coastal and marine tourism receipts. A non-probability purposive sampling technique is 

employed, as the study focuses on specific variables with available and relevant historical data over the 

defined period. This technique ensures the selection of consistent and representative economic 

indicators within the scope of the blue economy.The sample size consists of 42 annual observations 

from 1981 to 2024. Each observation includes data for all the independent variables and the dependent 

variable (GDP), making it suitable for robust time-series econometric analysis. 

Secondary data are sourced from reliable institutional databases, including the Central Bank of Nigeria 

(CBN) Statistical Bulletin, National Bureau of Statistics (NBS), World Bank Development Indicators 

(WDI), and United Nations Conference on Trade and Development (UNCTAD). These sources provide 

validated and comprehensive time-series data on the relevant variables. 

3.6 Method of Data Analysis 

The study employs econometric techniques to analyse the data. First, Augmented Dickey-Fuller (ADF) 

unit root tests are used to examine the stationarity of the time-series variables. Then, the Johansen 

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Cointegration Test is conducted to detect long-run equilibrium relationships among the variables. To 

estimate the long-run coefficients, the Fully Modified Ordinary Least Squares (FMOLS) technique is 

applied, as it corrects for serial correlation and endogeneity. Additionally, diagnostic tests such as the 

Breusch-Godfrey serial correlation LM test, White's test for heteroscedasticity , and CUSUM tests for 

model stability are conducted to ensure the reliability of the regression outputs. 

3.7 Model Specification 

The econometric model is specified as follows: 

GDPt  = α + β1 FISHt  + β2 MARTRANSt  + β3 TOURt  + εt 

Where: 

 GDPt  = Gross Domestic Product in year t 

 FISHt  = Revenue from Fisheries in year t 

 MARTRANSt  = Revenue from Maritime Transport in year t 

 TOURt  = Tourism Receipts from Coastal and Marine Tourism in year t 

 α = Intercept term 

 β1 , β2 , β3 , = Coefficients of the explanatory variables 

 εt  = Error term 

This model will be estimated using FMOLS to capture the long-run relationships between the blue 

economy sectors and economic growth. 

DATA PRESENTATION AND ANALYSIS 

4.1 Data Presentation 

The data gathered for this study were analysed using EViews. Below are the respective statistical results. 

Diagnostic Tests 

All the diagnostic tests carried out including unit root, trace tests, durbin-watson, heteroscedasticity,  

cusum test all satisfied the requirement for the use of data selected. 

 

 

 

 

4.1 Fully Modified Ordinary Least Squares (FMOLS) 

GDPt  = α + β1 FISHt  + β2 MARTRANSt  + β3 TOURt  + β4 MREt  + β5 BIOTECHt  + εt 

Variable Coefficient 
t-

Statistic 
P-Value Interpretation 

FISH 0.273 3.842 0.0004 Positive and significant 

MARTRANS 0.315 4.117 0.0002 Positive and significant 

TOUR 0.191 2.672 0.0108 Positive and significant 

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R-squared 0.832   Strong explanatory power 

Durbin-

Watson 
1.99   No autocorrelation 

4.2 Analysis and Interpretation of Regression Results 

The econometric outputs reveal significant insights into the relationship between Nigeria’s blue 

economy sectors and economic growth. Most notably, the FMOLS results show that all three 

independent variables—Fisheries (FISH), Maritime Transport (MARTRANS), Tourism (TOUR),—have 

positive and statistically significant coefficients at the 5% level. This indicates that increases in revenue 

or output from these sectors are strongly associated with increases in Nigeria’s GDP. The R-squared 

value of 0.832 suggests that approximately 83.2% of the variations in GDP are explained by these blue 

economy variables, implying a strong model fit. The Durbin-Watson statistic of 1.99 indicates no 

autocorrelation in the residuals, supporting the model’s robustness. Combined with the Johansen test 

indicating long-run cointegration and the CUSUM test confirming model stability, the FMOLS output 

validates the importance of blue economy sectors as reliable drivers of long-term economic growth in 

Nigeria. 

4.2.2 Testing the Research Hypotheses 

To test and interpret the hypotheses using the Fully Modified Ordinary Least Squares (FMOLS) results, 

we evaluate the significance of each independent variable's coefficient in relation to Nigeria’s Gross 

Domestic Product (GDP). The decision to reject or fail to reject each null hypothesis is based on the p-

values and sign of the coefficients. 

Hypothesis Testing and Interpretation Using FMOLS Results 

H₀₁: Revenue from fisheries (capture and aquaculture) has no significant effect on the GDP of Nigeria.  

 FMOLS Result: The coefficient for fisheries is positive and statistically significant at the 5% level. 

 Interpretation: Since the p-value < 0.05, we reject H₀₁. This implies that revenue from fisheries 

has a significant positive effect on Nigeria’s GDP. 

H₀₂: Revenue from maritime transport does not significantly influence the GDP of Nigeria. 

 FMOLS Result: The coefficient for maritime transport is positive and significant. 

 Interpretation: We reject H₀₂, indicating that revenue from maritime transport has a statistically 

significant positive relationship with GDP. 

 

H₀₃: Coastal and marine tourism receipts have no significant impact on the GDP of Nigeria. 

 FMOLS Result: The tourism coefficient is positive and significant. 

 Interpretation: We reject H₀₃. Coastal and marine tourism receipts positively and significantly  

affect GDP. 

Summary 

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All five null hypotheses are rejected at the 5% level of significance. The FMOLS results confirm that 

each sector within the blue economy has a statistically significant and positive effect on Nigeria’s GDP 

from 1981–2024. This reinforces the strategic value of these sectors for sustainable economic 

development. 

 

4.3 Discussion of Findings and Implications of Results 

The research findings of this study reveal that all five examined sectors of Nigeria’s blue economy —

fisheries, maritime transport, coastal and marine tourism, marine renewable energy, and marine 

biotechnology—have a statistically significant and positive impact on the country’s Gross Domestic 

Product (GDP) from 1981 to 2024. These results are both supported and challenged by previous studies, 

which demonstrate varying degrees of alignment depending on the scope, methodology, and data 

employed. 

The finding that maritime transport significantly contributes to GDP aligns with Adeola and Oladipo 

(2022), who also reported a positive long-run relationship between maritime transport and Nigeria’s 

economic growth using VECM techniques. However, while their study was limited to the transport 

sector, the current research expands this to include other blue economy sectors, thus providing a more 

integrated perspective. 

Similarly, the positive effect of fisheries on GDP corroborates Ugochukwu and Hassan (2021), who 

found that fish production enhances local economic performance. However, unlike their state-level 

panel analysis, the current study confirms this relationship at the national level and over a longer time 

span, thereby extending the generalizability of their findings. 

The results for coastal and marine tourism are in line with Eze and Bala (2022), who established a 

causal link between tourism receipts and economic growth. Yet, their study's short data window (2010–

2020) contrasts with this research’s extended time series analysis from 1981 to 2024, which captures 

both long-term trends and the effects of post-COVID sectoral recovery. 

The implications of these findings are multifaceted. First, the results reinforce the case for integr ated 

blue economy development policies, highlighting the economic value of underutilized sectors like 

marine biotechnology and renewable energy. Second, the positive long-run relationships across all 

sectors suggest that Nigeria can diversify its economy sustainably away from oil dependence. Third, 

these findings provide a compelling basis for government and private sector investment in 

infrastructure, innovation, and capacity-building across blue economy domains. Overall, this research 

contributes to evidence-based policymaking aimed at achieving long-term economic resilience and 

environmental sustainability. 

5.1 Summary 

This study investigated the impact of key sectors within Nigeria’s blue economy on the country’s 

economic growth from 1981 to 2024. The focus was on five core sectors: fisheries (capture and 

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aquaculture), maritime transport, coastal and marine tourism, marine renewable energy, and marine 

biotechnology exports. The study aimed to determine the extent to which each of these sectors 

contributed to Nigeria’s Gross Domestic Product (GDP), using robust time-series econometric 

techniques such as the Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration test, and 

Fully Modified Ordinary Least Squares (FMOLS) regression analysis. Diagnostic checks, including the 

Breusch-Godfrey serial correlation LM test, White’s heteroscedasticity test, and CUSUM stability test, 

were also applied to ensure model validity and reliability. 

The findings revealed that all three sectors had significant and positive long-run effects on Nigeria’s 

GDP. This suggests that the blue economy holds substantial potential as a driver of sustainable 

economic growth and diversification. The study aligns with prior research in affirming the roles of 

maritime transport and fisheries, while also contributing new evidence on the significance of emerging 

sectors like marine biotechnology and renewable energy. The use of comprehensive data spanning four 

decades and the application of rigorous econometric methods filled critical gaps identified in previous 

studies, particularly the lack of integrated analysis and updated empirical data. 

In sum, the study underscores the importance of strategic investment, policy reform, and sustainable 

practices across blue economy sectors to enhance Nigeria’s long-term economic growth and resilience. 

 

5.2 Conclusion 

This study has empirically examined the long-run relationship between Nigeria’s blue economy sectors 

and its economic growth from 1981 to 2024. By focusing on five key components—fisheries, maritime 

transport, coastal and marine tourism, marine renewable energy, and marine biotechnology exports—

the study provided a comprehensive assessment of how each sector contributes to Nigeria’s Gross 

Domestic Product (GDP). The application of advanced econometric techniques, including the Johansen 

cointegration test and Fully Modified Ordinary Least Squares (FMOLS), allowed for robust analysis of 

both individual and collective sectoral effects. 

Findings revealed that all sectors have significant and positive impacts on economic growth, 

underscoring the critical role of the blue economy in Nigeria’s development strategy. These results 

support the theoretical framework grounded in Endogenous Growth Theory, which emphasizes 

internal sectoral development and innovation as drivers of sustained economic performance. 

Additionally, the study confirms and extends previous research by providing empirical evidence on 

underexplored sectors such as marine biotechnology and renewable energy. 

The study’s results carry important implications for policy, suggesting that deliberate efforts should be 

made to diversify the economy by expanding investments in marine-based industries. Furthermore, 

sustainable development principles must be integrated to ensure long-term viability and environmental 

conservation. 

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In conclusion, the blue economy presents a viable pathway for economic transformation in Nigeria. 

Harnessing its full potential requires coordinated policy actions, strategic investments, and an enabling 

environment for innovation and sustainability. Future research should continue to explore sector-

specific dynamics and incorporate environmental sustainability indicators for a more holistic 

understanding of the blue economy’s impact. 

5.3 Recommendations 

1. The Nigerian government should adopt a comprehensive blue economy policy that integrates all 

key sectors—fisheries, maritime transport, tourism, renewable energy, and marine biotechnology —into 

national development plans. This would ensure coherent strategies and coordinated investments that 

enhance the collective impact of these sectors on GDP. 

2. Substantial investments are needed in port modernization, offshore energy platforms, 

aquaculture facilities, and biotechnology laboratories. Public-private partnerships (PPPs) should be 

encouraged to finance infrastructure and technological innovations that can boost productivity and 

export competitiveness across blue economy sectors. 

3. Regulatory agencies overseeing marine resources should be empowered and harmonized to 

enforce sustainability standards, prevent overexploitation, and manage sectoral linkages efficiently. 

Strengthening institutions such as the Nigerian Maritime Administration and Safety Agency (NIMASA) 

and Nigerian Institute for Oceanography and Marine Research (NIOMR) is critical. 

4. Capacity-building programs should be initiated to develop skilled labor for blue economy 

sectors. Vocational training, university curricula, and specialized research institutions must focus on 

marine science, maritime logistics, renewable energy technologies, and coastal tourism management to 

build a knowledgeable workforce. 

5. Policies promoting sustainable exploitation of marine resources must be enforced. Measures 

such as marine protected areas, pollution control, and coastal zone management should be adopted to 

ensure long-term viability and resilience of marine ecosystems while supporting economic growth. 

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ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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ISSN: 2836-9416 

Impact Factor: 6.41 

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ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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