The marine and blue industry occupies a central place in driving Nigeria’s economic development and revenue growth.
The blue economy goes beyond shipping, oil and gas and encompasses all activities aimed at harnessing the ocean’s abundant natural resources, including fishing, renewable energy, offshore power support networks and repairs.
Approximately 40% of the world’s population lives near coastal areas. This gives more than 3 billion people access to the sea for their livelihoods, and 80% of world trade takes place by sea.
According to data available from the Nigerian Maritime Authority Safety Agency (NIMASA), Nigeria’s untapped blue economy potential is valued at $296 billion.
This shows that sustainable exploitation of resources in the blue economy can lead to job creation, improved food security, tourism and infrastructure development, green energy, and more.
On taking office in May 2023, President Bola Ahmed Tinubu of Nigeria announced that, given the importance of this sector, the Oceans and Blues Initiative has a clear objective of exploring and harnessing the potential of oceans, oceans and coastal areas. Established the Ministry of Economy.
Five deep-sea ports are already being considered: Badagry deep-sea port in Lagos and Ondo deep-sea port in Ondo state in southwestern Nigeria. Others include Ibom Deep Seaport in Akwa Ibom in the South-South zone of the country, Bonny Deep Seaport in Rivers State and Benin River Port in Edo State.
The $2.59 billion investment in Badagry Port has already been approved by the Federal Executive Committee and has the potential to create around 250,000 jobs and attract foreign direct investment. Annual revenue is expected to be $53.6 billion.
Ondo Port, on the other hand, is operated by the state government and private investors.
The Benin River Port, Bonny Port and Ibom Deep Sea Port in the South-South region will help relieve pressure on the Lagos region and open up new investment opportunities in the South-South and South-East regions.
Five deep-sea ports need to be developed faster and on plan if Nigeria is to create more wealth and jobs needed to turn around the country’s economic fortunes.
In doing so, a network of modern ports will be created, which will not only reduce transit times for ships arriving in Nigeria, but will also help decongest existing ports.
Another issue that needs to be addressed is the revival of the national shipping company, which went bankrupt in the 1990s. This left the country’s shipping industry in the hands of foreigners. As a result, Nigeria’s ship charter market, estimated to be worth about $10 billion annually, is now being served by foreign-owned vessels.
Nigeria also faces illegal, unreported and unregulated fishing activities, primarily by foreign fishermen. It is estimated that Nigeria loses more than $70 million in revenue to illegal and unregulated fishing.
Maritime experts assert that the amount of illegal exploration in Nigerian waters is huge, estimated at between $600 million and $800 million annually. These experts argue that vessels from China, the European Union and Belize are notable for illegally using Nigerian waters.
To end the loss of income and jobs from Nigeria’s waters, Nigeria needs to enact a maritime law to end the illegal exploitation of the country’s marine resources.
Most importantly, private operators could better promote the blue economy by strengthening regulation and oversight to ensure safety in line with international standards.
The Nigerian government, through NIMASA, must urge the National Assembly to review relevant maritime laws that include punitive provisions against foreign trawlers engaging in illegal fishing activities.
Indeed, Nigeria’s maritime sector is huge and, if properly leveraged, can generate over seven trillion naira annually and create approximately 40 million jobs.
This requires the deliberate implementation of policies that enable investors to take advantage of the rich economic opportunities in Nigeria’s maritime sector to better utilize the resources of Nigeria’s maritime and blue economy sector.
