Dynamics and Patterns of Financial Investment in Fishery Enterprises in Southern Nigeria

Abstract

This study examined the dimension and pattern of financial investment in fishery enterprises in Southern Nigeria, focusing on ownership types, enterprise size, production systems, and sources of finance. Data were collected from 105 fishery enterprises through field surveys in 2025. Results showed that sole proprietorships (42.9%) and partnerships (41.0%) dominated the sector, while cooperatives (12.4%) and limited liability companies (3.8%) were less common. Aquaculture enterprises accounted for 60% of operations, capture fisheries 32.4%, and integrated systems 7.6%. Medium-scale enterprises (61.9%) employed 6–10 workers (62.9%) and typically operated two production cycles per year (62.9%). The mean initial capital investment was ₦795,238.60, the mean current capital was ₦730,476.69, the mean annual investment was ₦566,908.33, the mean loan amount accessed was ₦675,238.60, and the mean equity contribution was ₦368,571.93. Microfinance institutions (96.2%), personal savings (83.8%), cooperatives (69.5%), and family/friends (68.6%) were the most frequently used sources of finance, while government grants (7.6%) and NGOs (35.2%) were less utilized. The findings indicate that formalized, diversified, and larger enterprises attract higher investment, whereas small-scale operators rely heavily on informal and semi-formal financing. It is recommended that fishery entrepreneurs formalize their businesses, participate in cooperatives, diversify production systems, and adopt modern technologies, while government and development partners should improve access to credit, grants, and training to enhance investment, productivity, and sustainability in the sector.