By Steve Agbota
The Nigerian Exchange Limited (NGX) has said that the nation’s maritime industry can leverage blue bonds to raise financing from the capital market to finance infrastructure development projects in the marine and blue economy sector.
This will enable Nigeria to capture significant value and benefit from the $5 trillion global marine industries.
Speaking at the 3rd Quarter citizens’ and stakeholders’ engagement of the Ministry and its agencies in Lagos, Mr Jude Chiemeka, Chief Executive Officer of Nigerian Exchange Limited, said that
these bonds can be raised through bond issuance programmes and the bonds can be listed on the Nigerian Exchange Limited.
According to him, Nigeria’s 853km coastline and rich waterways represent multi-billion dollar opportunities in fisheries, aquaculture, ports, shipping, offshore energy, and tourism, adding that a well-managed blue economy can significantly boost GDP, create millions of jobs, and strengthen foreign exchange earnings.
“Nigeria’s Blue Economy has the potential to contribute significantly to the country’s economy. Alternative sustainable financing is the key to moving Nigeria’s marine and blue economy policy into impact. With innovative instruments like blue bonds, blended finance, and thematic instruments, the Ministry can mobilise billions in new capital,” he said.
However, he said the nation’s marine and blue economy sector required $10 billion over the next decade to restore mangroves and wetlands, modernise ports and logistics, expand aquaculture and cold-chain facilities, and upgrade wastewater and pollution control systems.
He added that the current budget allocation is far below the required scale to spur development in the sector.
Meanwhile, he said the Ministry’s revenue grew impressively year-on-year by over 98% (N700 billion to N1.39 trillion between 2023 and 2024), saying mobilising private and institutional capital remains essential to fully realise developmental aspirations.
He stated that NGX stands ready to partner with the Ministry to operationalise these instruments and create a financing transformation for Nigeria’s marine future.
“Together, we can move from Policy to Impact, financing the future of Nigeria’s marine and blue economy,” he added.
He pointed out that the blue (or thematic) bonds reduce the project funding cost compared to bank loans, saying it offers an opportunity for institutional investors to participate in infrastructure projects through listed, tradable securities that can offer superior risk-adjusted returns.
“Blended finance works by using public or philanthropic funds (concessional capital) to catalyse private sector investment in projects that contribute to sustainable development but may not otherwise attract commercial funding due to high perceived risks or low returns.
“This approach has been implemented across various sectors, with a particular focus on infrastructure, energy, and financial services in developing countries. Suitable for capital-intensive projects e.g. Port modernisation, wastewater treatment plants, aquaculture hubs, cold-chain logistics for fisheries. Enables Nigerian pension funds and banks to participate in blue economy financing with reduced risk,” he explained.
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