•Says Nigeria loses N6tr yearly to oil rig tax evasion
Olisa Agbakoba Legal (OAL) has urged the Federal Government to urgently implement reforms already outlined in the National Policy on Marine and Blue Economy (2025–2034) to unlock the N70 trillion in yearly revenue as the country faces mounting fiscal pressure with total public debt estimated at N152.4 trillion as of June 30.
In a letter dated November 30, 2025, and addressed to the Minister of Marine and Blue Economy, Adegboyega Oyetola, OAL said the country’s maritime sector is the most undervalued economic asset, capable of surpassing non-oil revenue if modernised and properly regulated.
The letter, signed by the Senior Partner, OAL, Dr Olisa Agbakoba, cited data from the Nigerian Institution of Marine Engineers and Naval Architects (NIMENA), which noted that the maritime industry could generate $44 billion (N63.4 trillion) yearly.
Agbakoba said the maritime sector could save Nigeria’s deteriorating fiscal position, stating that as of June 30, 2025, the country’s total public debt surged to N152.4 trillion.
He said debt servicing consumed N12.36 trillion or 35.26 per cent of the entire 2024 budget and is projected to rise to N15.4 trillion in 2025, far exceeding the combined budget allocation to health, education and defence and above the 22.5 per cent threshold recommended by the World Bank.
The firm stated that the debt servicing-to-federal-government-revenue ratio climbed from 76.8 per cent in 2023 to 77.5 per cent in 2024, while the projected N13.39 trillion deficit in the 2025 budget will be 69 per cent financed through additional borrowing.
Agbakoba warned that while the government continues the unsustainable borrowing cycle, enormous revenue opportunities in the marine and blue economy remain neglected.
Agbakoba’s policy submission identified key maritime revenue windows, backed by legal amendments already outlined in the National Policy on Marine and Blue Economy, which can serve the country’s fiscal needs.
He said Nigeria loses an estimated N20 billion daily to cargo diversion to neighbouring ports in Cotonou, Tema and Lomé due to inadequate port infrastructure development.
The legal maritime expert argued that reforming and modernising the port system could unlock around N14 trillion yearly through tariffs, cargo handling fees and special economic zones.
Agbakoba also highlighted the abandonment of 42 inland waterways, noting that dredging the Niger and Benue rivers and developing a functional multimodal transport system could generate N10 to N12 trillion yearly through tolling, ferry services, logistics and tourism.
On cabotage, he revealed that more than 25,000 foreign vessels illegally engage in coastal trade, depriving the country of an estimated N8 trillion yearly, noting that strengthening enforcement of the Cabotage Act 2003 would reverse this trend and boost indigenous shipping capacity and seafaring jobs.
Equally troubling, according to the letter, is the absence of a taxation framework for oil rigs operating in Nigerian waters, which costs the country N6 trillion yearly.
Agbakoba said Nigeria currently collects no taxes from oil rigs operating in its waters, noting that amending the NIMASA Act to impose and regulate oil rig taxes would immediately capture this revenue.
He stressed that Nigeria also loses over $1 billion, amounting to N16 trillion in value yearly, to foreign firms providing marine insurance, shipping, banking and legal services in the oil and gas sector.
According to him, enforcing the Local Content Act and establishing a Maritime Development Bank would help retain this revenue within the domestic economy.
While acknowledging the gains of the Deep Blue Project, which contributed to a 30 per cent reduction in piracy, Agbakoba insisted that only a dedicated coast guard can provide the level of maritime security needed to attract international shipping, reduce insurance premiums by up to 40 per cent and unlock coastal tourism revenue estimated at N8 trillion to N10 trillion yearly.
He further urged Nigeria to prepare for new global standards on Maritime Autonomous Surface Ships, which the International Maritime Organisation (IMO) will mandate by 2028.
According to him, early adoption of emerging maritime technologies could create an additional N5 trillion to N6 trillion yearly and position Nigeria as a regional digital maritime hub.
“With decisive policy implementation, the maritime sector could rival petroleum revenues, create millions of jobs and transform Nigeria’s debt burden into a manageable fiscal obligation,” the letter stated.
