Unlocking opportunities in Nigeria’s marine, blue economy

The Ministry of Marine and Blue Economy, despite its limited budget, has the potential to achieve self-reliance, ADAKU ONYENUCHEYA reports.

The allocation of N35.75 billion for capital expenditure in the 2025 Appropriation Bill to the Ministry of Marine and Blue Economy has drawn criticism. Concerns have been raised about how the government intend to address the numerous challenges within the sector that demand immediate attention to unlock its immense potential.

The maritime sector grapples with a diverse array of financial challenges, including the rehabilitation of port infrastructure, the completion of both proposed and abandoned deep seaports, dredging of maritime corridors, construction of rail systems for container movement, automation of ports, and the functioning of regulatory agencies, among others.

Addressing these issues is estimated to require over a trillion Naira. However, the meagre budget allocation poses significant challenges, as some projects were not included in the budget or received insufficient funds.

For instance, the ongoing bathymetric assessment of post-dredged navigational channels in Badagry, Lagos, received only a paltry N12 million. Furthermore, the delivery of greenfield seaports, bonded terminals, and inland waterways projects nationwide in the maritime sector was allocated a mere N20 million. Additionally, route maintenance and assessment of the operational capacity of inland waterways facilities received a mere N5 million.

Other allocations include N282 million for the installation of buoys in Nigeria’s inland waterways, N111.3 million for hydrographic surveys to locate wrecks in navigable waterways, and N108.3 million for the designation and establishment of marine protected areas in selected littoral states.

The control, clearing, and disposal of marine litter, debris, and other waste received a modest N125 million, while the development of pilot blue energy projects in coastal communities was allocated N94.6 million.

The procurement of patrol boats and trawlers for monitoring, control, and surveillance of fishing activities was allocated N390 million, and the procurement of boats, fishing nets, floats, and weighing scales for fishermen nationwide received N186 million.

Notably, the key marine/ocean resources category remains unaddressed, with the National Policy for the Marine and Blue Economy still pending after a year since the ministry’s establishment.

Nigeria’s Marine and Blue Economy, despite facing limited funding, holds immense potential to generate substantial revenue and create employment opportunities. With over 853 kilometres of coastline and abundant aquatic resources, the sector can serve as a pivotal catalyst for economic diversification, especially as Nigeria strives to reduce its reliance on oil revenues.

To unlock this potential, collaborative efforts between the government, private sector, and stakeholders are crucial. The establishment of the Ministry of Marine and Blue Economy in 2023 underscores the sector’s significance. However, the limited budgetary allocation raises concerns about the ministry’s ability to fully develop the sector.

Despite these challenges, experts believe that Nigeria can still generate substantial revenue through strategic partnerships, technological advancements and policy reforms.

The goldmine
According to Prof. Alfred Oniye, the Dean of the Faculty at City University, Cambodia, Nigeria’s blue economy holds the potential to generate over $100 billion annually. This estimate is based on the sustainable exploitation of marine resources, job creation, enhanced food security, tourism, infrastructure development, and the development of green energy.

The blue economy encompasses activities related to oceans, seas, and coastal areas, such as shipping, fishing, aquaculture, tourism, and renewable energy. Nigeria’s Exclusive Economic Zone (EEZ) spans approximately 217,000 square kilometres and is rich in resources like fish, oil, and gas reserves, as well as the potential for renewable energy from wave and wind power.

The World Bank reports that the blue economy contributes over $1.5 trillion to the global economy annually, with projections indicating a potential doubling of this figure by 2030. Sustainable blue economy sub-sectors are expected to generate nearly 50 million jobs in Africa, although Nigeria currently lags behind countries like Indonesia and Kenya in capitalizing on their maritime resources.

Despite these challenges, experts believe that Nigeria can still generate substantial revenue through strategic partnerships, technological advancements, and policy reforms. By unlocking the potential of its blue economy, Nigeria can achieve its trillion-dollar economy and repay its debts.

Unlocking revenue potential
The blue economy involves the sustainable use of ocean resources for economic growth, improved livelihoods and job creation while preserving the health of ocean ecosystems.

Nigeria, with its extensive coastline and abundant marine resources, has significant potential to harness the blue economy for revenue generation through several key strategies, including marine renewable energy, fisheries and aquaculture management, coastal and marine tourism, and marine biotechnology.

Other opportunities include ocean observation and data sharing, blue carbon initiatives, waste management, shipbuilding and maritime services, offshore oil and gas exploration and international partnerships and funding.

Speaking on the topic, “How Nigeria Can Generate Revenue from Blue Economy Resources,” Oniye emphasised that the sustainable use of ocean resources offers transformative possibilities for Nigeria’s economy.

He highlighted the country’s potential to generate over $100 billion yearly through targeted investments and collaborative efforts. Oniye recommends focusing on marine renewable energy, specifically tidal, wave, and offshore wind energy projects, which could reduce reliance on fossil fuels and provide a sustainable, reliable source of electricity for export revenue.

He also stressed the importance of fisheries and aquaculture management, urging the government to implement regulations to prevent overfishing, promote aquaculture, and develop value-added fish products.

“By ensuring the sustainability of fish stocks, Nigeria can position itself as a leader in the fishing industry while securing food supply and creating jobs,” he noted.

Coastal and marine tourism is another sector identified for growth, Oniye suggested developing resorts, marinas, and recreational facilities to attract both international and domestic tourists, boosting local economies and generating foreign exchange earnings.

The professor also pointed to emerging sectors such as marine biotechnology and blue carbon initiatives. Marine biotechnology, he explained, could lead to breakthroughs in medicine and food production, while blue carbon initiatives could generate revenue from carbon credits and international climate finance mechanisms by preserving marine ecosystems like mangroves and seagrass meadows. Also, Oniye emphasised the need for waste management infrastructure in coastal areas to prevent pollution and protect marine life.

“Waste-to-energy projects and recycling initiatives can create jobs while safeguarding Nigeria’s marine ecosystems,” he said. Oniye also urged Nigeria to expand its shipbuilding and maritime services industries, calling for investments in shipyards, repair facilities, and training centres.

These developments would support the shipping industry and provide employment opportunities. Regarding offshore oil and gas exploration, he acknowledged the sector’s current contributions but advocated for sustainable practices to minimise environmental harm.

To implement these strategies effectively, Oniye called for international partnerships and funding, noting that engaging with global organisations and regional initiatives would provide Nigeria with the expertise and resources needed to realise its blue economy potential.

“The blue economy offers Nigeria a unique pathway to economic transformation, combining revenue generation with environmental preservation,” Oniye stated. He urged the government, private sector and local communities to collaborate in tapping into this untapped resource.

“With a focus on sustainability, innovation, and strategic investments, Nigeria can position itself as a global leader in blue economy development, ensuring prosperity for future generations while preserving its marine ecosystems,” he concluded.

The Managing Director of Harsecom Logistics Limited, Haruna Omolajomo, outlined a robust blueprint for Nigeria to tap into the vast potential of its marine and blue economy, which he believes could generate over $1.5 trillion yearly and create up to 30 million jobs globally.

Omolajomo emphasised that the country’s rich maritime resources present an opportunity to significantly diversify its economy, reduce dependence on crude oil, and create sustainable wealth.

According to Omolajomo, the blue economy has the potential to support nearly three billion people globally through jobs, income, and livelihoods and he sees it as a massive untapped resource for Nigeria.

Omolajomo identified several strategic areas where Nigeria can generate significant revenue and employment, including investing in empowering and building resilience for communities living along its oceans, seas, lakes and rivers. He suggested leveraging financial instruments like blue carbon, blue bonds, and coastal resilience projects to protect the environment while boosting economic growth. He also pointed out that Nigeria’s tourism sector remains underdeveloped, with each state having untapped tourist attractions.

“If properly developed, Nigeria’s tourism could generate billions of dollars each year,” he noted. Omolajomo called for increased investment in fishery technology and agricultural methods, stating that the fisheries and agriculture sectors, if fully utilised, could contribute more than N1.5 trillion to Nigeria’s economy.

According to him, by increasing fish production and food exports, Nigeria can capitalise on its maritime resources. Omolajomo also emphasised strengthening maritime security and developing hydroelectric power projects as additional ways Nigeria can benefit from the blue economy.

He highlighted the importance of developing intermodal transportation, particularly for goods moving via railways to the hinterlands, which would improve logistical efficiency and create more revenue-generating opportunities for the government.

Combating inefficiency
Experts emphasized the need to close financial loopholes within key marine-related government agencies, including the Nigeria Customs Services, NIMASA, the National Inland Waterways Authority (NIWA), the Nigerian Ports Authority (NPA), and the Nigeria Shippers Council (NSC).

In his call for systemic change, Omolajomo recommended the adoption of modern audit practices to optimize revenue generation and reduce inefficiencies, such as eliminating ghost workers in these agencies.

Omolajomo urged the Federal Government to take decisive action in reforming and investing in the marine and blue economy. Nigeria can transform its maritime resources into a sustainable and thriving economic powerhouse with proper planning, development, and investment, according to a speaker at the PortNews Summit held in Lagos on January 26, 2025.

This transformation could reshape Nigeria’s economic landscape, create millions of jobs, and position the country as a global leader in the blue economy.
However, stakeholders in the maritime sector have called for urgent action to address the growing exclusion of indigenous operators.

They demand the implementation of executive orders and policies that protect indigenous maritime operators’ businesses, preserve jobs, and reduce capital flight in the sector. One key recommendation is the introduction of a local content law in the maritime sector, similar to the successful model in the oil and gas industry.

This law would ensure that Nigeria and Nigerians are prioritized in economic policies, as seen in other countries.The communique issued after the summit highlighted the near absence of local content in the port concession exercise, which has led to the increasing marginalisation of local operators and the takeover of businesses that were meant for them.

These include coastal shipping, customs brokerage, freight forwarding, inland container depots/bonded terminal operations, empty holding bays, barge operations, and haulage services.

The four key papers presented at the summit emphasized the need to exclusively reserve these businesses for local operators under concession agreements. Former Minister of Interior and Chairman of Integrated Oil and Gas Limited, Emmanuel Iheanacho, expressed concerns over the lack of local content in the maritime industry.

Iheanacho, the Chief Executive Officer of Genesis Worldwide Shipping Company, expressed his disappointment that the Nigerian Content Development and Monitoring Board (NCDMB) hasn’t replicated its success in the oil and gas sector in the maritime industry. He lamented the exclusion of Indigenous players in favour of foreign operators. He urged the government to review concession agreements to protect the interests of local investors and reserve traditional maritime businesses for Nigerians.

He criticized the port reforms as rushed and called for their review, emphasizing the need for deliberate policies to increase Indigenous participation in the sector.

The General Secretary of the Association of Bonded Terminal Operators, Haruna Omolajomo, also expressed his dismay at the marginalization of local operators despite Nigeria’s capabilities in various maritime services.

He criticised concessionaires for sidelining bonded terminal operators by refusing to deliver containers to them, effectively driving them out of business. He further criticised concessionaires for offering door-to-door services without regard for local content, leaving bonded terminal operators with limited opportunities.

Omolajomo emphasized that seaports are global transit hubs, but Nigerian terminal operators fail to recognise this. He urged the Federal Government to enforce Section 16(c) of the Constitution, mandating concessionaires to grant access to bonded terminals and inland ports for containers, with at least seven days of free demurrage to facilitate documentation and transfers.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, called for a review of the Nigerian Investment Promotion Commission (NIPC) Act of 2005, which provides foreign investors with unrestricted access to all business sectors.
Yusuf argued that this policy negatively impacts local operators in sectors where they have the potential to excel.

He emphasised that foreign dominance in the maritime sector hinders the economy and advocated for a local content law similar to that in the oil and gas sector.

Yusuf highlighted that promoting local content would create substantial employment opportunities and significantly reduce capital flight. He also urged the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian National Petroleum Company Limited (NNPCL) to strengthen the implementation of the Cabotage Act and expedite the disbursement of the Cabotage Vessel Finance Fund (CVFF) to enhance local shipping capacity.

A master mariner, Captain Olayiwola Oladapo, expressed concerns about the limited employment opportunities for Nigerian seafarers on cabotage vessels, including those owned by Nigerians.

He highlighted that Certificates of Competency (CoC) issued by NIMASA are not recognized by operators of cabotage-registered vessels. Oladapo suggested introducing anti-trust laws to regulate economic activities and ensure that Nigerians are prioritized in economic policies.

He also called for stricter conditions for granting waivers to foreign seafarers, including verifying the availability of qualified Nigerian seafarers through the Nigerian Seafarers Data Record.

The master marina proposed a time limit for employing foreign seafarers on cabotage vessels, during which Nigerian seafarers should undergo training to build local capacity.