Fourteen months after the establishment of the Ministry of Marine and Blue Economy, the sector stands at a crossroads, grappling with the realities of unfulfilled potential, untapped resources and unstructured development, ADAKU ONYENUCHEYA reports.
With 14 months into the creation of the Ministry of Marine and Blue Economy, the sector is struggling to meet its projected potential, with the absence of a comprehensive working policy, raising serious concerns about the country’s ability to achieve its ambitious revenue generation targets of N1 trillion.
President Bola Tinubu created the Federal Ministry of Marine and Blue Economy in August 2023 to harness the potential of the ocean economy, promote sustainable use of marine resources for economic growth and tap into the opportunities in the blue economy valued at $1.5 trillion yearly.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, announced in May that the ministry recorded N242 billion in revenue during the first quarter of 2024, nine months after its creation on August 21, 2024.
This figure represents 24.2 per cent of the N1 trillion target, with only two months remaining until the ministry’s first anniversary.
The ministry, established to harness Nigeria’s extensive maritime resources to diversify the economy, has yet to produce a definitive policy framework.
This gap has significantly impeded the development of crucial areas within the ocean economy, which could otherwise play a pivotal role in transforming Nigeria’s economic landscape.
Nigeria’s marine resources remain largely untapped, including a coastline of approximately 420 nautical miles and an exclusive economic zone spanning 200 nautical miles, equating to a maritime area of 290 square kilometres.
The sector’s potential, encompassing diverse components such as maritime transport and logistics, offshore renewable energy, fishing, aquaculture, marine tourism and recreation, seabed mining, coastal development and construction, ocean-based manufacturing and processing as well as marine biotechnology, have been stymied by the lack of a structured approach.
Other potentials include, marine bioprospecting, carbon sequestration, coastal protection, waste disposal, port transport and related services, shipbuilding and ship repairs, marine culture, seawater pond, coastal protection and development, waste disposal/assimilation of nutrients, desalination and ocean conservation among others.
Globally, the blue economy is estimated to generate between $2.7 trillion and $3 trillion yearly, supporting 350 million jobs, according to the International Maritime Organisation (IMO) and the World Ocean Council.
The African Union (AU) also underscored the importance of this sector, with Africa’s blue economy contributing approximately $300 billion and creating 49 million jobs.
However, Nigeria has largely focused on improving maritime infrastructure, port efficiency, and safety, while other components of the blue economy remain neglected.
Oyetola had attributed the revenue performance of the ministry’s agencies to a 10 per cent increase in vessel traffic at Nigerian ports, supported by strategic investments in port infrastructure.
Despite these gains, critics argue that the narrow focus on port-related activities has come at the expense of broader economic opportunities within the blue economy.
The Secretary-General of the Merchant Seafarers Association of Nigeria (MESAN), Prof. Alfred Oniye, voiced concerns over the absence of a comprehensive policy, which he believes is crucial for unlocking the sector’s full potential.
Oniye underscores that while Nigeria’s maritime sector has grown due to improved infrastructure, operational efficiency, and safety measures, untapped opportunities remain within the ocean economy.
Some of the vital untapped opportunities include seabed mining, where valuable minerals like manganese, copper, cobalt, zinc and rare earth metals from the seafloor could be extracted for use in high-demand industries.
These minerals are highly sought after to produce batteries, smartphones, electric cars, solar and wind turbines, and green energy storage.
Another untapped area is marine biotechnology, where discoveries of novel genes and biological compounds from the ocean environment can lead to the commercial development of pharmaceuticals, enzymes, cosmetics and other products.
Despite these opportunities, the ministry received just N19 billion in the 2024 Appropriation Act, a low allocation, compared to the N80.7 billion allocated to the Federal Ministry of Transportation, which previously oversaw the maritime sector.
This funding disparity underscores the new ministry’s challenges in achieving its goals.
The minister stated that the ministry’s forward-thinking approach includes promoting inland dry ports and the deployment of advanced monitoring systems to combat illegal fishing, enhancing artisanal fisheries, and developing policies to support sustainable fisheries.
Meanwhile, stakeholders have criticised the long-awaited policy rollout, expressing increasing concern about the future direction of the Marine and Blue Economy sector over the next four years.
The critique comes as the Federal Government faces growing pressure to deliver on its promises of economic reform and growth, particularly in sectors like the blue economy, which hold significant untapped potential
The Vice Chairman of the Business Action Against Corruption (BAAC) Integrity Alliance, Jonathan Nicol, expressed disappointment with the government’s lack of a clear policy framework, warning that without swift action, the blue economy’s potential to generate N1 trillion yearly would remain unfulfilled.
He criticised the focus on ports and shipping to the exclusion of other vital components of the blue economy and highlighted environmental degradation and high regulatory burdens as significant obstacles.
Additionally, Nicol mentioned the high regulatory burdens and the decline in the number of ships coming to Nigeria, with many vessels preferring to dock in neighbouring Togo due to more favourable conditions.
He concluded by urging the government to act swiftly in developing and implementing a comprehensive policy for the blue economy, stating: “It doesn’t take more than six months to put things right if you have a very active delivery team.”
Nicol warned that continued inaction would further exacerbate the economic decline and operational difficulties faced by businesses in the sector.
The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, criticised the ministry for failing to deliver on its promises and describing its efforts over the past year as “mere noise”.
Fatomilola emphasised that the ministry’s leadership lacks the necessary expertise, further casting doubt on its ability to implement effective policies by December, as promised.
President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, also voiced concerns, arguing that the ministry is fundamentally flawed in its approach and lacks the necessary expertise to guide Nigeria’s aspirations in the blue economy.
He strongly criticised the ministry’s formation and lack of clear direction, noting that the scope of the blue economy extends far beyond shipping and transport as it encompasses fisheries, mining, tourism, and renewable energy, none of which fall under a singular maritime focus.
As the ministry approaches its December deadline for finalising the national policy as assured by the Minister, stakeholders remain sceptical.
They stated that delay in rolling out a comprehensive policy not only jeopardises the ministry’s objectives but also risks stalling economic reforms that are critical for Nigeria’s growth.
They noted that without urgent action, the potential of Nigeria’s blue economy may remain unrealised, leaving the country’s vast marine resources underutilised and its economic diversification goals unmet.
However, Oniye pointed to successful blue economy policies in other countries that drive sustainable economic growth while conserving marine resources, which could serve as models for Nigeria.
Oniye listed the countries to include, Kenya’s “Vision 2030” development programme on offshore tuna fishery, seaweed farming, port developments, shipping, and coastal tourism; Vietnam’s community management programme for sustainable fishing and Portugal’s investments in marine renewable energy, aiming to reach 10 gigawatts of capacity by 2030.
Additionally, the Samoa Ocean Strategy, released in 2020, is a national policy framework designed to protect 30 per cent of its ocean by 2025, while supporting marine spatial planning and sustainable fisheries.
Also, China’s restoration of seagrass beds to support sea cucumber aquaculture, India’s deep-sea resource exploration, as well as sustainable shipping practices and the development of green maritime technologies in Denmark and Norway.
The former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, criticised the ministry, declaring it “of no value” to the country’s maritime sector.
Omatseye emphasised the ministry’s lack of impact, asserting that it has not contributed positively to the lives of Nigerians involved in maritime activities, noting that the sector was better off in the Ministry of Transport.
Omatseye also drew comparisons with the aviation sector, pointing to the accomplishments of Aviation Minister Festus Keyamo, who he noted has garnered praise from industry stakeholders for his proactive approach and global outreach.
“Look at what Festus is doing in the aviation sector, he’s gone all over the world, seen Boeing, and is doing whatever it takes to improve that sector. But I don’t know anybody that sings our minister’s praises,” Omatseye remarked.
He underscored the importance of a more integrated approach within the existing framework of the Ministry of Transport, which has historically been more connected to industry stakeholders.
