The Blue Economy in Nigeria: Harnessing Its Potentials While Mitigating Climate Change

By Daniel Kip, Esq.

Introduction

The first appearance of the term ‘Blue Economy’ (BE) dates back to 2009, at the congress of the Senate Committee on Commerce, Science and Transportation of the United States. In that same year, the International Symposium on Blue Economy Initiative for Green Growth in Korea took place, where “the concept of using ocean resources in a way that respects the environment” featured.

Blue economy has become the most widely used term, although its conceptualisation differs across stakeholders and countries. In finance circles, the term has largely focused on the decarbonisation of existing ocean economy activities as the world transitions to net zero greenhouse gas emissions to meet the Paris Agreement temperature targets. The term broadly relates to a sustainable ocean economy – the economic activities associated with the ocean, seas and coastal regions – that allows resource use while preserving the health of the ocean ecosystem. However, there is no universally agreed definition. According to the World Bank Group, Blue Economy is the sustainable use of ocean resources for economic growth, improved livelihood and jobs, and ecosystem health. The Blue Economy encompasses Renewal Energy, Fisheries, Marine Transport, Tourism, etc.

On the other hand, climate change refers to long term shifts in temperatures and weather patterns. Such shifts can be natural, due to changes in the sun’s activity or large volcanic eruptions. It is also referred to the long-term warming of the planet due to an increase in average global temperature, primarily caused by human activities that release greenhouse gases, such as carbon dioxide and methane, into the atmosphere.

Climate change poses a significant threat to Nigeria’s blue economy. Rising sea levels, increased storm intensity, and changes in ocean currents and temperature are all likely to have significant impacts on Nigeria’s coastal communities and marine ecosystems. One of the most significant impacts of climate change on Nigeria’s blue economy is likely to be the loss of coastal land and infrastructure. Rising sea levels and increased erosion are already causing significant problems in many of Nigeria’s coastal communities, with homes, businesses, and infrastructure being destroyed or damaged. The recent devastating flood disaster in Borno, Jigawa, Kogi and other States of the Country, is a quick reminder of the damning effect of climate change.

It therefore imperative that while optimally leveraging on the huge potentials in the Blue Economy, deliberate and concerted climate mitigating, adaptation, & resilient practices and policies must be imbibed to fully unlock the said economy.

The Impact of Blue Economy Globally

According to the European Commission 2020 EU blue economy report, Blue Economy aims to promote economic growth, improve life and social inclusion without compromising the oceans’ environmental sustainability and coastal areas since the sea’s resources are limited and their physical conditions have been harmed by human actions. According to the Report, marine fisheries contribute more than 270 billion USD annually to global GDP. While more sustainable fishery can generate more revenue, more fish and help restore fish stock, sustainable marine energy can play a vital role in social and economic development.

Marine Transportation on the other hand is a crucial part of the Blue Economy as 80% of international goods traded are transported by sea and the volume of seaborne trade is expected to double by 2030 and quadruple by 2050. Ocean and coastal tourism can create jobs and engender economic growth. It is reported that Coastal Least Developing States receive more than 41 million visitors per year. In 2012 the European Union implemented its Blue Growth (BG) strategy and established subsectors within the field of the Blue Economy. The BG Strategy breaks down the BE into five main sectors: Biotechnology, Renewable Energy, Coastal and Maritime Tourism, Aquaculture and Mineral Resources, and integrates other sectors such as fishing, transportation, offshore oil and gas extraction, and ship construction and repair. Biotechnology presents excellent opportunities to produce natural products with possible applications in the food and pharmaceutical sectors.

The German established Blue Economy sectors employ about 503 000 people and generate around €42.9 billion in Gross Value Added (GVA). The Blue Economy employs roughly 1.2% of the national workforce, an increase from 1.1% recorded in 2020. German Blue Economy recorded an increase in contribution to the overall GVA, moving from 0.9% in 2020 to 1.3% in 2021. The German Blue Economy is dominated by Coastal tourism in terms of employment, with 32% of blue workers employed in this sector. The share has increased since 2020 (29%) and is almost back to pre-Covid levels (in 2019, 35%). Maritime transport contributes to roughly one fourth of the Blue Economy workforce and Port activities to 19%. In terms of GVA, the German Maritime transport contributes to almost half the Blue Economy GVA (49%), displaying a large increase on the previous year (38%). Port activities are the second most important contributors to Germany’s Blue Economy GVA (16%).

According to Cantwell M. of the U.S. Committee on Commerce, Science, and Transportation, United States Senate One Hundred Eleventh Congress, on ‘The blue economy: the role of the Oceans in our Nation’s Economic Future’, the importance of the BE for the USA’s overall economy, the excellent business opportunities it provides, and the concerns about climate change are excellent opportunities for new blue jobs in renewable energy.

Undoubtedly, ocean resources generate numerous benefits to the world economy and offer essential opportunities for transportation, food production, energy, mineral extraction, biotechnology, human settlement in coastal areas, tourism and recreation, and scientific research. Tourism has played a decisive role in developing many island economies, triggering other activities to obtain local economic returns. Similarly, aquaculture and fisheries have contributed to the economic development of certain regions without jeopardizing access to essential resources such as small-scale fisheries.

Globally, shipping is the primary means of supplying raw materials, consumer goods, and energy, becoming a facilitator of world trade and contributing to economic growth and employment, both at sea and on land. In addition, the shipbuilding industry provides real added value to numerous coastal communities.

The Potentials of The Blue Economy in Nigeria

The blue economy, a concept that encompasses the sustainable use of ocean resources to promote economic growth, social inclusion, and environmental protection, presents a significant opportunity for Nigeria to diversify its economy and mitigate the impacts of climate change. With a coastline of over 850 kilometers and a vast array of marine resources, Nigeria is well-positioned to harness the potential of the blue economy. However, this must be done in a way that acknowledges and addresses the challenges posed by climate change.

Nigeria’s blue economy has the potential to contribute significantly to the country’s economic growth and development. The maritime sector, which includes shipping, ports, and logistics, is already a significant contributor to Nigeria’s GDP. However, there are many other areas of the blue economy that remain untapped, including fisheries, tourism, and renewable energy. The fisheries sector, for example, has the potential to provide livelihoods for thousands of Nigerians, while also contributing to the country’s food security. Nigeria’s Exclusive Economic Zone (EEZ) is home to a diverse array of marine species, including fish, shellfish, and other seafood. However, the sector is currently underdeveloped, with many fishermen using traditional methods that are inefficient and unsustainable.

Just like in other climes, the tourism sector is another area of the blue economy that has significant potential in Nigeria. The country’s coastline offers many opportunities for beach tourism, as well as for more specialized forms of tourism, such as surfing and snorkelling. However, the sector is currently underdeveloped, with many of Nigeria’s beaches and coastal communities lacking the infrastructure and services needed to support tourism. Marine transportation facilitates the import and export of goods, boosting Nigeria’s trade and commerce. The development of ports infrastructure is expected to enhance port efficiency and increase trade volumes. These will in turn generate employment opportunities in various sectors thus contributing to Nigeria’s economic growth and development.

Mitigating the Impacts of Climate Change on The Blue Economy in Nigeria

There are many steps that Nigeria can take to mitigate the impacts of climate change on its blue economy. One of the most important is to develop and implement a comprehensive climate change adaptation plan for the maritime sector. This plan should include measures to protect coastal infrastructure and communities from the impacts of sea level rise and increased storm intensity.

Another important step is to promote sustainable fishing practices and support the development of climate-resilient fisheries management systems. This could involve providing training and support to fishermen, as well as implementing regulations to prevent overfishing and protect marine habitats. Also, Nigeria can take steps to promote sustainable tourism practices and support the development of climate-resilient tourism infrastructure. This could involve providing training and support to tourism operators, as well as investing in infrastructure that is resilient to the impacts of climate change.

There is the need to protect the seas, oceans and rivers. 80% of litters in the oceans is from land-based sources thus better waste management on land can help the oceans recover. The prevailing rising sea-levels, coastal erosion, changing ocean current patterns, and acidification all impacts of climate change are staggering. Though, the oceans are an important carbon sink and helps mitigate climate change. Further, the exploitation and extraction of offshore oil and gas is a reality in many economies around the world thus Nigeria must weigh the economic benefits against the negative impact it may have on living marine resources.

Finally, government must invest massively in research on innovative and sustainable practices and solutions, especially in biotechnology and renewable energy, in order to boost the Blue Economy and combat climate change.

CONCLUSION
The Blue Economy has the potential to contribute significantly to Nigeria’s economic growth and development, while also promoting social inclusion and environmental protection. However, the impacts of climate change pose a significant threat to Nigeria’s blue economy, and urgent action is needed to mitigate these impacts. By developing and implementing a comprehensive climate change adaptation plan for the maritime sector, promoting sustainable fishing practices, and supporting the development of climate-resilient tourism infrastructure, Nigeria can help to ensure the long-term sustainability of its blue economy.

Source: loyalnigerialawyer