Nigeria’s maritime sector is central to trade, revenue generation and global economic engagement. The sector stands as both a testament to the economic ambitions and a mirror of its enduring challenges in the past 65 years, ADAKU ONYENUCHEYA reports.
As Nigeria marks its 65th independence anniversary today, the celebration underscores the collective need to harness economic opportunities, including the maritime sector.
After decades of neglect, Nigeria’s maritime industry gained renewed recognition in 2023 with the creation of a dedicated Ministry of Marine and Blue Economy. The ministry was established to unlock the sector’s full potential and help drive President Bola Tinubu’s $1 trillion gross domestic product (GDP) target.
The sector has recorded some progress, including the launch of the 10-Year National Policy on Marine and Blue Economy (2025–2034), deployment of the Deep Blue Project, which has significantly reduced piracy in Nigerian waters, and the completion of a new deep seaport.
However, vast opportunities remain untapped. These include the modernisation of seaports and inland waterways, support for indigenous shipping lines, expansion of fisheries and aquaculture and development of terminals and eco-tourism infrastructure. Others are investment in marine biotechnology and renewable energy, maritime capacity building and increased vessel ownership.
Despite the huge prospects, the journey since 1960 has been far from smooth. Aging infrastructure, policy inconsistencies and bureaucratic bottlenecks continue to constrain efficiency.
Port congestion, high cargo dwell times and multiple taxation drive up shipping costs, leaving Nigerian ports less competitive than neighbouring hubs such as Cotonou, Tema and Lome.
Achieved milestones
Despite challenges, the sector has made progress over the years, playing a crucial role in the country’s economic growth as a major importer and then exporter of goods.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, described the country’s marine and blue economy as “a new frontier of innovation, prosperity and inclusive growth,” highlighting the sector’s potential to transform the economic landscape.
Oyetola said Nigeria has made measurable strides both at home and abroad by adopting policies that promote sustainable practices, investing in modern port facilities and strengthening regional frameworks for security and trade.
Internationally, he noted, the Federal Government has been an active participant in global maritime dialogues, contributing to the formulation of policies that ensure the responsible and equitable use of the oceans.
“Our vision is to harness these possibilities to make the sector a leading contributor to Nigeria’s economy, reducing our dependence on oil and gas and driving diversification in line with national priorities. We are determined to realise this vision through consistent effort, bold reforms, and sustained collaboration,” Oyetola said.
The minister pointed to the ministry’s record of discipline and results, recalling that in the first quarter of 2025, the Central Results Delivery Coordination Unit (CRDCU) awarded the ministry a performance score of 96 per cent, while in 2024, the Presidential Enabling Business Environment Council (PEBEC) named it the best-performing ministry in the country.
The achievements, he said, demonstrate the government’s capacity to deliver. But scaling up will require unlocking far greater resources, he said.
Oyetola also celebrated Nigeria’s three-year piracy-free record in the Gulf of Guinea, attributing the milestone to sustained investments in the Deep Blue Project, a multi-agency security initiative.
He added that the ongoing rehabilitation and modernisation of Lagos ports are designed to attract larger vessels, reduce turnaround times and create thousands of jobs, with similar upgrades planned across the country.
Also speaking, the President of the Merchant Seafarers Association of USA Inc. and Nigeria, Prof. Alfred Oniye, described the country’s maritime sector as a strategic pillar of national development.
He cited key achievements, including the creation of the Ministry of Marine and Blue Economy, which he called a landmark move to consolidate maritime governance, promote sustainable ocean resource use and drive economic diversification.
Oniye highlighted the significant reduction in piracy across the Gulf of Guinea and the launch of the Lekki Deep Seaport, Nigeria’s first fully automated port capable of handling ultra-large vessels and boosting regional trade competitiveness.
Unaddressed challenges
Despite notable progress, several persistent challenges continue to threaten the full potential of Nigeria’s maritime sector. Key concerns include outdated infrastructure, inadequate automation to transform ports into smart hubs, poor intermodal transport connectivity, weak policy implementation and limited financing mechanisms to boost local participation.
While the government and its agencies tout the drive to secure funds for the modernisation of Apapa and Tin Can Island ports as an achievement, rehabilitation work is yet to commence.
The dilapidated state of the ports poses safety risks to workers and vessels, discouraging shipping lines and eroding confidence. Similar neglect afflicts the Eastern ports – Onne, Calabar and Rivers – as well as river ports across the country, stalling balanced regional growth.
A lack of port modernisation and persistent delays in cargo clearance have pushed importers and shippers to patronise neighbouring ports in Cotonou, Tema, and Lomé, further weakening Nigeria’s competitiveness.
Efforts to empower indigenous participation remain stalled despite presidential directives for the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners.
Although the 2003 Cabotage Act was designed to strengthen local operators in coastal trade, foreign dominance persists. The long-delayed release of the $700 million CVFF underscores the gap between policy intent and execution, with shipowners repeatedly calling for fairer financing, fleet renewal incentives and a level playing field.
Nigeria also lacks a strong national shipping fleet and the capacity to compete on global trade lanes, as the long-envisioned National Flag Carrier remains unrealised.
Also, with a significant decline in piracy, vessels bound for Nigerian ports continue to pay War Risk Insurance (WRI) premiums, raising concerns about why the country is still billed for risks that no longer exist.
Industry data shows that Nigeria-bound cargoes pay an estimated $400 billion annually to Lloyd’s of London P&I clubs and other international insurers.
For decades, piracy and sea robbery earned the Gulf of Guinea the reputation of “world piracy hotspot”. However, joint patrols, the deployment of the Deep Blue Project’s C4I centre and regional cooperation under the Yaoundé Code of Conduct have led to a dramatic drop in attacks.
Yet, isolated incidents, such as the recent abduction of 17 passengers travelling by boat from Oron (Akwa Ibom) to Calabar (Cross River) have reignited concerns about rising insecurity along Nigeria’s coastal routes.
Oniye noted that many ports and terminals remain outdated, with poor road and rail connectivity causing delays and inefficiencies. He also cited inconsistent enforcement, overlapping agencies and bureaucratic red tape as major obstacles discouraging investment and complicating operations.
Oniye warned that, while piracy has declined, illegal bunkering, sea robbery, and marine pollution still threaten maritime safety and sustainability. He highlighted oil spills, waste dumping, and a shortage of qualified seafarers, marine engineers, and logistics experts as factors limiting local capacity and competitiveness.
Additional costs from War Risk Insurance premiums and compliance with the International Maritime Organization’s (IMO) carbon emission rules further strain Nigerian operators.
Also speaking, the General Secretary of the Association of Bonded Terminal Operators (ABTO), Haruna Omolajomo, cautioned that Nigeria risks losing billions in revenue, forfeiting thousands of jobs, and ceding control of its maritime sector to foreign operators.
He said restrictive policies are crippling indigenous operators, while frequent regulatory changes and interference by multiple agencies hinder planning and efficiency.
Omolajomo lamented that dilapidated access roads and harassment by local government-linked “area boys,” who extort illegal levies, drive up costs and discourage investment. He stressed that bonded terminals, along with Inland Container Depots (ICDs), dry docks, and off-dock facilities, are critical to decongest Nigeria’s seaports and facilitate trade.
According to Omolajomo, operators have invested more than N3 trillion, with over 40 bonded terminals in Lagos alone, yet many are running at less than five to seven per cent capacity, while some have shut down entirely.
“If allowed to operate fully, no bonded terminal would generate less than N1 billion yearly for the government. Instead, operators who once employed thousands are now laying off workers, while some terminals rely on petty jobs to survive,” he said.
Path to the future
To unlock the full potential of Nigeria’s maritime and blue economy, stakeholders insist that the government must implement actionable policies, provide funding for underutilised resources and create targeted incentives to attract both indigenous private investors and foreign capital.
Oniye stressed that the government must expand and upgrade ports, terminals, and transport links to meet global standards, harmonise maritime laws, reduce bureaucracy and enforce compliance to boost investor confidence.
He also called for the development of maritime academies, specialised training programmes, and incentives to build a skilled workforce, alongside strict enforcement of anti-pollution regulations.
Oniye urged the government and stakeholders to fully embrace the blue economy as a pathway to long-term growth, leveraging the African Continental Free Trade Area (AfCFTA) to simplify trade, reduce currency barriers and strengthen Nigeria’s position in regional commerce.
Former Minister of Interior, Captain Emmanuel Iheanacho, emphasised the need for Nigeria to accelerate its shift from fossil fuels to renewable energy to achieve economic diversification and protect the country’s fragile marine environment.
According to him, Nigeria is richly endowed with solar, wind, hydro, biomass, and geothermal resources capable of providing cleaner and more reliable power if properly harnessed.
Iheanacho recalled that the Federal Government’s National Renewable Energy Action Plan targets 30 per cent of the national energy mix to come from renewable sources by 2030, including a milestone of adding at least 5,000 megawatts of renewable power to the national grid within the same period.
Some proposals, he added, even recommend raising the target to 50 per cent, noting that the benefits of this transition go far beyond environmental gains.
“Moving away from fossil fuels will create jobs in manufacturing, installation, and maintenance of renewable infrastructure, stimulate innovation in technology and business models, and open new investment streams to help diversify the economy,” Iheanacho said. He pointed to the booming trade in domestic solar installations as proof that renewable energy is already creating opportunities for small businesses and households.
The Permanent Secretary of the Ministry, Olufemi Oloruntola, lamented that the current budgetary allocation to the marine sector remains grossly inadequate compared to the capital-intensive demands of port modernisation, maritime security, fisheries, tourism, and renewable energy.
He argued that with the right financing structure, Nigeria could unlock access to over $1.5 trillion in global blue economy opportunities projected by 2030, create millions of jobs, and secure sustainable livelihoods for coastal communities.
Oloruntola called for the establishment of a dedicated Blue Economy Fund, stronger public–private partnerships, and the adoption of innovative financing instruments such as blue bonds, green bonds and development support from multilateral partners.
“Public investment must serve as the essential seed capital that de-risks private participation, strengthens regulatory institutions, and aligns national priorities with long-term growth objectives,” he said.
He outlined key opportunities Nigeria must harness, including the modernisation of seaports and inland waterways, support for indigenous shipping lines, expansion of fisheries and aquaculture, development of cruise terminals and eco-tourism infrastructure and investment in marine biotechnology and renewable energy projects.
Former Director-General of NIMASA, Temisan Omatseye, warned that the burden of War Risk Insurance (WRI) will persist regardless of improvements in maritime security. He cautioned that the dominance of foreign insurers and external security frameworks could threaten Nigeria’s sovereignty over its maritime trade.
“The next colonisation of Nigeria will come through shipping. If sanctions are placed on us tomorrow, we will be crippled because we have no control over our cargoes. That is the danger ahead,” Omatseye warned.
Industry experts have also urged the revival of river ports across the country, noting that unpredictable cargo volumes and the absence of well-defined trade routes make it difficult to plan and invest in port infrastructure and operations.
Without viable trade routes, they warn, many river ports will remain underutilised despite their economic potential.On inland waterways, experts recommend enhanced surveillance and monitoring, real-time water-level tracking systems, weather-forecasting tools, patrol boats, and stricter enforcement of safety regulations.
They also emphasised the importance of community engagement and public awareness campaigns to improve safety and encourage greater use of Nigeria’s vast network of rivers and creeks.
