Nigeria is failing to unlock an estimated $296 billion blue economy opportunity despite recent improvements in port operations and maritime security.
The chairman of the Alliance for Economic Research and Ethics, Dele Oye, raised this concern in a report he issued over the weekend.
According to him, chronic underfunding and fragmented regulation are threatening to slow the sector’s growth.
He noted that the Federal Ministry of Marine and Blue Economy had made measurable progress since its establishment nearly three years ago but warned that inadequate funding, weak institutional coordination, and poor infrastructure continue to prevent the sector from reaching its full potential.
He described the creation of the ministry as “the most significant structural reform in Nigeria’s maritime governance in decades,” noting that maritime affairs now enjoy dedicated ministerial oversight under the Minister of Marine and Blue Economy, Adegboyega Oyetola.
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Oye highlighted that the first quarter of 2026 recorded some of Nigeria’s strongest maritime performance in recent years.
He said gross registered tonnage for ocean-going vessels rose by 19.5 percent to 46.75 million, while cargo throughput excluding crude oil terminals reached 32.38 million metric tons, vehicle handling increased by 67 percent to 58,870 units, and transshipment container traffic surged by 83.1 percent.
He said the figures showed that the country’s ports were gradually shifting from volume-driven to value-driven operations.
“These figures are not merely statistical curiosities. They reflect a maritime sector transitioning from volume-driven to value-driven operations—attracting larger vessels, handling higher-value cargo, and positioning Nigeria as a regional redistribution hub under the African Continental Free Trade Area (AfCFTA),” Oye said.
In the report, he also credited the Deep Blue program with improving maritime security, noting that Nigeria has gone more than four consecutive years without piracy incidents, helping to boost investor confidence and lower insurance costs for vessels calling at Nigerian ports.
He said that the launch of a digital disbursement portal for the Cabotage Vessel Financing Fund, which has accumulated more than $700 million over two decades, marked an important step towards supporting indigenous shipping operators.
Despite these gains, Oye argued that inadequate government funding remains the sector’s biggest obstacle.
He noted that the Federal Ministry of Marine and Blue Economy received only ₦10.5 billion in the 2026 budget, despite overseeing sectors responsible for more than 90 percent of Nigeria’s international trade by volume.
Quoting the minister, Oye said the allocation was “grossly insufficient” to drive meaningful reforms.
He explained that the amount represented only 0.015 percent of the estimated ₦72 trillion annual investment required to fully develop Nigeria’s ports, waterways, fisheries, and marine renewable energy.
“This is not underfunding; it is structural neglect dressed in reformist rhetoric,” Oye stated.
He also highlighted institutional overlaps among key maritime agencies, including the Nigerian Maritime Administration and Safety Agency, the National Inland Waterways Authority, and the Nigerian Ports Authority, saying the duplication of responsibilities creates regulatory uncertainty, delays approvals, and discourages investment.
Oye identified fisheries as one of the clearest examples of the sector’s untapped potential.
He pointed out that Nigeria consumes about 3.6 million metric tonnes of fish annually but produces only 1.2 million metric tonnes, leaving a deficit of 2.4 million tonnes and forcing the country to spend more than $1 billion each year on fish imports.
He argued that expanding aquaculture could raise production to 10 million metric tons by 2030, create up to 10 million jobs, and position Nigeria as a major seafood exporter.
To unlock the sector’s potential, Oye urged the government to undertake sweeping reforms over the next five years, including raising the ministry’s annual budget to at least ₦500 billion, issuing Nigeria’s first sovereign blue bond, fully operationalizing the $700 million Cabotage Vessel Financing Fund, accelerating port rehabilitation, and expanding aquaculture.
He also called for the establishment of a National Blue Economy Coordination Council to harmonize the activities of maritime agencies and eliminate regulatory overlaps.
While acknowledging the ministry’s early achievements, Oye warned that Nigeria risks losing out as competition for investment in the global blue economy intensifies.
“The blue economy is not merely a sector; it is a transformation. It is the bridge between Nigeria’s oil-dependent past and its diversified future,” Oye maintained.
He added that the key challenge is no longer whether Nigeria has the resources to become a leading maritime economy, but whether it will act quickly enough to seize the opportunity before it is lost.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X