Financial Investment, Climate Variability and Fishery Enterprise Performance Nexus in Southern Nigeria

This study examined the nexus between financial investment, climate variability, and fishery enterprise performance in Southern Nigeria using the Two-Stage Least Squares (2SLS) approach. Primary data were collected from 105 fishery enterprise operators using a structured questionnaire. Descriptive statistics, cost and return analysis, and the Two-Stage Least Squares regression technique were used for data analysis. The results showed that temperature change (X ̅= 4.19), flood occurrence (X ̅= 4.07), rainfall variability (X ̅= 4.05), drought frequency (X ̅= 3.94), and storm/wind effects (X ̅= 3.81) were the major climate-related challenges affecting fishery enterprises. The average current capital investment among fish farmers was ₦730,476.69, indicating moderate financial capacity. Cost and return analysis revealed that fish farming is profitable but highly cost-intensive, with feed accounting for 72.63% of total production costs. The net farm income per production cycle was ₦425,636.44 with a productivity index of 1.11 and a return on investment of 0.149. The first stage of the 2SLS results showed that market access (p < 0.05), training (p < 0.10), farm size (p < 0.10), return on sales (p < 0.10), and input cost (p < 0.10) significantly influenced financial investment among fish farmers. In the second stage, rainfall variability (p < 0.01), drought frequency (p < 0.01), education level (p < 0.01), farm size (p < 0.01), and seasonal variability (p < 0.05) positively influenced fishery enterprise performance, while storm and wind effects had a negative and significant influence (p < 0.01). The study concludes that financial investment and climate variability significantly influence fishery enterprise performance in the study area. The study therefore recommends improved access to credit facilities, promotion of climate-smart aquaculture practices, and policies that support local production of fish feed and improved market access to enhance the resilience and sustainability of fishery enterprises in Southern Nigeria.