By Faridat Salifu
Nigeria’s ambition to build a diversified economy through its vast marine resources continues to face significant obstacles as weak investment, fragmented governance and slow policy implementation limit the country’s ability to unlock an estimated $296 billion blue economy opportunity.
Despite the establishment of the Federal Ministry of Marine and Blue Economy in 2023 and recent gains in port efficiency, maritime security and institutional reforms, stakeholders say the sector remains structurally underfunded and unable to realise its full economic potential.
Chairman of the Alliance for Economic Research and Ethics Ltd/GTE, Dele Kelvin Oye, warned that Nigeria risks missing a once-in-a-generation opportunity to transform its marine economy unless government significantly increases investment, harmonises maritime governance and accelerates reforms.
In his report, Nigeria’s Blue Economy: The Trillion-Naira Ocean We Refuse to Swim In, Oye said Nigeria’s 850-kilometre Atlantic coastline, more than 10,000 kilometres of navigable inland waterways and extensive maritime infrastructure position the country to become a leading regional maritime hub.
He noted that the blue economy extends beyond ports and shipping to include fisheries and aquaculture, coastal tourism, offshore renewable energy, shipbuilding, marine biotechnology, inland water transport, maritime logistics, seabed mineral exploration and blue carbon markets.
According to him, these industries could generate millions of jobs, boost non-oil exports, strengthen food security and support Nigeria’s aspiration of becoming a $1 trillion economy if adequately developed.
Oye acknowledged that reforms initiated by the Federal Ministry of Marine and Blue Economy have begun yielding measurable results. He cited improved port operations, an 83.1 per cent increase in container trans-shipment traffic and more than four consecutive years without piracy incidents in the Gulf of Guinea as evidence that ongoing reforms are strengthening investor confidence.
He also described the launch of the digital disbursement portal for the Cabotage Vessel Financing Fund (CVFF), which has accumulated over $700 million, as a major step toward strengthening indigenous shipping capacity.
However, he argued that progress remains constrained by inadequate funding. While the ministry oversees activities responsible for more than 90 per cent of Nigeria’s international trade by volume, its proposed N10.5 billion budget for 2026 is insufficient to modernise ports, expand inland waterways, strengthen fisheries and attract large-scale private investment.
Citing estimates by the National Institute for Policy and Strategic Studies (NIPSS), Oye said Nigeria requires about N72 trillion annually across maritime infrastructure and related sectors to unlock the full value of the blue economy.
He further identified overlapping mandates among agencies including the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA) and National Inland Waterways Authority (NIWA) as a major barrier to investment, noting that duplicated regulations and multiple licensing requirements continue to discourage investors and delay projects.
According to Oye, the fisheries sector illustrates the cost of underinvestment. Nigeria consumes more than 3.6 million metric tonnes of fish annually but produces only about 1.4 million metric tonnes, forcing the country to spend over $1 billion each year on fish imports.
He said expanding aquaculture, investing in fish processing facilities and developing cold-chain infrastructure could reduce imports, improve food security and create employment across coastal and riverine communities.
To reposition the sector, Oye recommended establishing a National Blue Economy Coordination Council to streamline maritime governance, increasing annual budgetary allocations to at least N500 billion, issuing Nigeria’s first sovereign Blue Bond, accelerating port rehabilitation and inland waterway dredging, and adopting a National Marine Spatial Plan to improve investment certainty and reduce conflicts over marine resources.
His recommendations align with concerns recently raised by the Minister of Marine and Blue Economy, Adegboyega Oyetola, who described the ministry’s proposed 2026 allocation as grossly inadequate during budget defence before lawmakers.
Oyetola also revealed that only N202.47 million, representing about 1.7 per cent of the ministry’s revised 2025 capital budget of N3.53 billion, had been released, highlighting the financing constraints affecting implementation of key reforms.
The report concludes that while Nigeria has laid the institutional foundation for a thriving blue economy, sustained investment, coordinated governance and effective implementation will determine whether the country’s vast marine resources become a catalyst for economic transformation or remain an underutilised national asset.
