Experts: Nigeria’s $296 Billion Blue Economy Sub-Sector Hampered by Policy and Infrastructure Deficits.
Nigeria, with its extensive 852-kilometer coastline along the Atlantic Ocean in the Gulf of Guinea and a maritime area of over 46,000 square kilometers, has significant untapped potential in its blue economy. This includes fresh mangrove swamps, creeks, coastal rivers, estuaries, bays, and offshore waters, making it highly attractive for economic development. However, experts warn that a lack of clear policies and adequate infrastructure is stifling growth in this sector, which is valued at $296 billion.
The blue economy encompasses a wide range of industries, including fishing, coastal leisure and tourism, shipbuilding, seawater desalination, and offshore oil and gas. Emerging industries like deep-sea mining, biotechnology, aquaculture, seabed extraction, offshore renewable energy, and blue carbon sequestration also present significant opportunities for Nigeria.
Globally, the ocean economy supports 90% of trade and provides millions of jobs, encompassing shipping, tourism, and offshore energy, valued at $24 trillion. Marine fisheries and reefs, sea grass, and mangroves are worth $6.9 trillion, while trade and transport are valued at $5.2 trillion. Coastline productivity and carbon absorption contribute an additional $12.1 trillion.
Recognizing this potential, Nigeria has established a Ministry of Marine and Blue Economy. However, the absence of specific policies to maximize these resources has led to significant underperformance in this sector. The government recently announced a target of generating over $2.7 billion from the blue economy and has initiated the development of a national policy aimed at enhancing the shipping sub-sector, boosting trade facilitation, and promoting economic growth.
At a recent stakeholder meeting, the Minister of Marine and Blue Economy, Adegboyega Oyetola, emphasized the importance of fiscal and trade policies to increase Nigerian participation in the shipping industry.
Oyetola stated, “As we navigate the complex waters of global trade and economic uncertainty, we must recognize the significance of the marine and blue economy sector in stimulating national economic growth and development. The government has identified this sector as a pivotal area of focus, and we are committed to creating an enabling environment that supports your businesses and promotes the growth of the sector as a whole.”
Maritime lawyer Dr. Emeka Akabogu noted that Nigeria’s maritime sector could potentially generate N7 trillion annually and create two million jobs over five years. He emphasized the vast marine assets Nigeria possesses, including the longest coastline in West Africa, and extensive inland waterways. He added that the maritime sector is poised to become the largest economic sector outside of oil and gas.
Akabogu stated, “Experts also estimate that our maritime sector can generate N7 trillion annually and two million jobs over five years. This is largely because of our vast marine assets of the longest coastline in West Africa, stretching over 892 km from Badagry to Bakassi, with a total shelf area of about 42,000 km2.”
Despite these opportunities, maritime expert Samson Basey criticized the government’s approach, stating that there is a lack of serious commitment to harnessing the blue economy’s benefits.
“First, ask the government what policies they have put in place to drive the ocean economy? We all understand that there is a new ministry called Marine and Blue Economy but the question is, do the people overseeing the affairs of this ministry have deep knowledge of the blue economy? Blue economy is beyond what a minister will go on the internet to source for materials and dish it out during engagement meetings. We are not serious about this sector,” Bassey said.
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Basey highlighted that Nigeria’s blue economy could significantly contribute to economic diversification, reducing reliance on crude oil. He pointed out that sectors like fisheries have immense potential but are hindered by limited infrastructure, outdated techniques, and inadequate regulatory frameworks.
He explained, “The blue economy encompasses all economic activities related to oceans, seas, and other bodies of water. It encompasses various sectors such as fisheries, aquaculture, maritime transport, renewable energy, tourism, and mineral resources. By fully embracing the blue economy, Nigeria stands to gain numerous advantages. First, it offers an opportunity for economic diversification, reducing the country’s overreliance on crude oil.”
While Nigeria has substantial potential in its blue economy, realizing this potential requires clear policies, adequate infrastructure, and a committed approach from both the government and stakeholders. The establishment of the Ministry of Marine and Blue Economy is a positive step, but more concrete actions are needed to fully tap into the $296 billion opportunity and ensure sustainable economic growth and development.
