FINANCIAL ANALYSIS FOR THE OPERATION OF MV BLUE OCEAN SEAWEED HARVESTER IN THE NIGER DELTA REGION

This study presents a comprehensive financial appraisal of the proposed operation of the MV Blue Ocean Seaweed Harvester in the Niger Delta region of Nigeria, aimed at evaluating its economic viability, profitability, and risk profile over a projected ten-year operational period (2025–2035). Standard financial evaluation techniques, including Net Present Value (NPV), Cost–Benefit Analysis, Break-Even Analysis, Payback Period, Return on Investment (ROI), Profitability Index (PI), and Sensitivity Analysis, were employed to assess the project’s financial performance. The total capital expenditure required for vessel refurbishment and modification was estimated at ₦9.36 million, while the annual operational expenditure was projected at approximately ₦9.96 million. Based on an annual harvesting capacity of 792 bags of seaweed and an average selling price of ₦45,200 per bag with annual price escalation, the total projected revenue over the ten-year period was estimated at ₦450.3 million. The results of the financial analysis indicate a strong positive NPV of ₦182.9 million at a discount rate of 10 percent, an ROI of 3,457 percent, a profitability index of 20.53, and a payback period of approximately five months. Sensitivity and scenario analyses reveal that harvested quantity and market price are the most influential variables affecting profitability, while variations in capital expenditure have minimal impact on overall financial performance. The project remains financially viable under adverse scenarios, including increased operational costs, reduced output, and declining market prices. The study concludes that the MV Blue Ocean Seaweed Harvester project is highly profitable, resilient to financial risk, and economically sustainable, representing a viable investment opportunity within Nigeria’s emerging blue economy with strong potential for scalability and replication in other coastal regions.