Nigeria’s vast marine resources remain largely underutilised despite growing recognition of the blue economy as a major driver of economic diversification, with industry stakeholders warning that inadequate funding and fragmented policies are limiting the sector’s growth.
Experts estimate that Nigeria could unlock up to $296 billion in economic value from its blue economy if the country fully develops its maritime resources and accelerates sector reforms.
Nigeria has an 850-kilometre Atlantic coastline, over 10,000 kilometres of navigable inland waterways, and some of West Africa’s busiest seaports. These assets provide opportunities in fisheries, aquaculture, marine tourism, offshore renewable energy, shipbuilding, maritime logistics, marine biotechnology, inland water transport, and the emerging blue carbon market.
If fully harnessed, the sector could generate millions of jobs, boost non-oil exports, strengthen food security, attract private investment, and support Nigeria’s ambition of building a $1 trillion economy.
Despite recent improvements following the creation of the Federal Ministry of Marine and Blue Economy in 2023, stakeholders say investment remains far below the level required to position Nigeria as a leading maritime economy.
Chairman of the Alliance for Economic Research and Ethics Ltd/GTE, Dele Kelvin Oye, warned that Nigeria risks missing a major economic opportunity unless the government increases funding, strengthens governance, and accelerates reforms across the maritime sector.
In a report titled “Nigeria’s Blue Economy: The Trillion-Naira Ocean We Refuse to Swim In,” Oye said the establishment of the ministry marked the most significant institutional reform in decades but noted that the country’s marine assets continue to generate only a fraction of their potential value.
According to him, the challenge lies not in the availability of natural resources but in the lack of coordinated policies, sustained investment, and effective implementation.
Oye highlighted notable progress made since the ministry’s creation, particularly in port efficiency, maritime security, and institutional restructuring.
He cited first-quarter 2026 data from the Nigerian Ports Authority showing that the Gross Registered Tonnage of ocean-going vessels increased by 19.5 percent to 46.75 million, despite a slight decline in vessel calls, indicating that larger and more efficient vessels are increasingly using Nigerian ports.
Cargo throughput, excluding crude oil terminals, reached 32.38 million metric tonnes, while vehicle handling rose by 67 percent to 58,870 units. Container trans-shipment traffic also increased by 83.1 percent, reflecting Nigeria’s growing role as a regional maritime hub under the African Continental Free Trade Area.
Oye also pointed to improvements in maritime security through the Deep Blue Project, noting that Nigeria has now recorded more than four consecutive years without piracy incidents in the Gulf of Guinea.
He said the improved security environment has strengthened investor confidence, reduced insurance costs for vessels, and enhanced Nigeria’s reputation as a safer maritime destination.
The expert further described the launch of the digital disbursement portal for the Cabotage Vessel Financing Fund, which has accumulated more than $700 million, as a significant step toward strengthening indigenous shipping capacity.
Despite these achievements, Oye argued that inadequate funding remains the sector’s biggest challenge.
He noted that although the ministry oversees activities responsible for more than 90 percent of Nigeria’s international trade by volume, its proposed N10.5 billion budget for 2026 is insufficient to modernise ports, expand inland waterways, improve fisheries, and attract large-scale private investment.
Citing estimates by the National Institute for Policy and Strategic Studies, Oye said Nigeria requires about N72 trillion annually across maritime infrastructure, fisheries, renewable energy, and inland waterways to unlock the full value of the blue economy.
He also identified overlapping responsibilities among agencies such as the Nigerian Maritime Administration and Safety Agency, the Nigerian Ports Authority, and the National Inland Waterways Authority as major obstacles to investment, saying duplicated regulations and multiple licensing requirements continue to slow project implementation.
According to Oye, Nigeria’s fisheries sector also demonstrates the economic cost of underinvestment.
With annual fish demand estimated at more than 3.6 million metric tonnes against domestic production of about 1.4 million metric tonnes, Nigeria spends over $1 billion each year importing fish.
He said expanding aquaculture, establishing fish processing facilities, and investing in cold-chain logistics would reduce imports, improve food security, and create employment opportunities.
To reposition the sector, Oye recommended establishing a National Blue Economy Coordination Council, increasing the ministry’s annual budget to at least N500 billion, issuing Nigeria’s first sovereign Blue Bond, accelerating seaport rehabilitation, dredging inland waterways, and adopting a National Marine Spatial Plan.
He warned that the African Continental Free Trade Area is increasing regional competition and that countries investing more aggressively in their blue economies are likely to attract greater investment and economic benefits.
The recommendations come as the Minister of Marine and Blue Economy, Adegboyega Oyetola, also described the ministry’s proposed N10.5 billion allocation for 2026 as inadequate during the defence of the budget before lawmakers.
The minister disclosed that the ministry received only N202.47 million, representing about 1.7 percent of its revised N3.53 billion capital budget for 2025, highlighting the funding challenges facing efforts to transform Nigeria’s maritime sector.
