Nigeria is blessed with an 853 km coastline, an Exclusive Economic Zone (EEZ) extending 200 nautical miles, and over 10,000 km of inland waterways. The country’s blue economy spans offshore oil and gas activities, aquaculture and fisheries, renewable energy, maritime transport, and coastal tourism. While the sector has the capacity to contribute $296 billion annually to GDP, it instead loses ₦33.3 trillion every year because these resources remain underutilised. 

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Nigeria currently boasts the second-largest aquaculture sector in Africa and is the world’s largest producer of the African catfish. Yet, despite this impressive continental market share, the country is far from self-sufficient, relying on imports of 2.5 million tonnes of fish annually to meet local demand. National Bureau of Statistics (NBS) data reveals that maritime transport remains the country’s leading external trade channel, earning ₦42.87 trillion in the first half of 2025 alone. The sector has the potential to create jobs, help fight food insecurity, and drive economic growth; however, structural challenges, such as pollution, overfishing, underinvestment, poor infrastructure, slow technology adoption, and an unskilled workforce, continue to stunt its progress. Nigeria’s blue economy could become the country’s next goldmine, but these bottlenecks must be addressed for this to happen.

Sub-sectors in Nigeria’s Blue Economy 

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• Aquaculture and Fisheries

Nigeria is the leading aquaculture producer in Sub-Saharan Africa, generating approximately 259,100 tons annually. The origin of this large sector dates back to the period between 1939 and 1945, during World War II. At the time, the British colonial authorities conducted studies to explore Nigeria’s aquaculture resources, and recognising the sector’s potential, colonial authorities established a dedicated fisheries organisation in Lagos in 1941. By 1945, the organisation was integrated into the Ministry of Commerce and Industries, before evolving into the Federal Fisheries Services in the 1950s and coming under the control of the Federal Ministry of Economic Development in 1951. 

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Post-independence, fish-farming experienced exponential growth, supported by a strategic partnership with the Food and Agriculture Organisation (FAO). Production rose from 2000 tonnes in 1960 to 300,000 tonnes by 2015. However, in 2019, disruptions from the COVID-19 pandemic caused production to dip to 290,000 tonnes, and further to 260,000 tonnes in 2020. In 2025, Nigeria produced 300,000 tons of fish. As a leading global producer, Nigeria accounts for 80% of the bonytongue aquaculture production globally. Economically, the sector contributed 3.24% of Nigeria’s GDP in Q1 2021 and, alongside the broader agro-sector, accounted for 22.61% in Q2 2024, signalling continued growth and potential. Yet, severe structural hurdles such as inadequate research and technology funding, a lack of fish health expertise, and an insufficient supply of high-quality fish feed must be addressed for the sector to reach its full capacity.

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• Maritime Transport Sector

Nigeria’s modern maritime transport can be traced back to the 18th century, following the abolition of the transatlantic slave trade. In the 1830s, European explorers conducted geographical surveys to map the Niger River's course and examine Nigeria’s maritime resources. By 1850, Elder Dempster and Woerman Linie launched the first liner services in West Africa, leading to the gradual development of skeletal ports and lighterage facilities. The Lagos Lagoon was opened in 1909 to facilitate sea travel.  Soon after, the Apapa port was established in 1913, with its first four deep-water berths, 548.64 m deep, constructed in 1921. With the discovery of coal in Enugu, the Port Harcourt port was also established in 1913, and by 1916, four 1,920-foot-long berths were built to facilitate coal exports and encourage imports. The Nigerian Ports Authority (NPA) was established in 1955, under the 1954 Ports Act, to regulate the sector.

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After independence, Nigeria’s maritime sector expanded in alignment with the First National Development Plan (1962-1968). Six additional 943m berths were added to the initial four, mechanisation of port traffic was introduced, and ₦45 million was allocated to construct the second Apapa wharf extension and refurbish the Port Harcourt port. Today, Nigeria has 7 major seaports: the Lagos Port Complex, Lekki Deep Sea Port, Tin Can Island Port Complex in Lagos State; the Calabar Port Complex in Cross River State; the  Delta Ports in Warri, Delta State; and the Rivers Port and Onne Port complexes in Rivers State.  Together, these ports account for 80% of total international trade inflows. In 2024, total cargo throughput was 103.6 million metric tons, and surged by 24.8% to over 129.3 million metric tons in 2025. The NPA generated ₦894.86 billion in revenue in 2024 and projected an impressive ₦1.28 trillion for 2025. 

However, industry experts estimate that the sector loses ₦1 trillion annually due to poor infrastructure and the lack of port automation, which increases operational costs for businesses and limits shipping lines. These structural shortcomings put Nigeria at a competitive disadvantage.  Neighbouring West African countries with modern and automated infrastructure, such as Ghana, Togo, and the Benin Republic, frequently divert significant cargo volumes that would otherwise be bound for Nigeria. To address these challenges, the federal government, in partnership with the Ministry of Marine and Blue Economy, has mapped out two key reforms: the modernisation of Nigeria’s port infrastructure, and the creation of a National Single Window (NSW) to streamline trade documentation and eliminate bureaucratic delays. If successfully implemented, the NSW could boost customs revenue by 10-20%, adding between ₦600 billion and ₦1.2 trillion in government revenue, and reduce cargo dwell time by up to 45% and trade transaction costs by 25%. The maritime transport sector holds immense promise; however, these structural challenges must be addressed to facilitate growth and international competitiveness.

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• Energy

Nigeria’s Blue Economy is a critical foundation for both traditional offshore oil and gas operations and emerging renewable energy sources such as hydropower, tidal and wave energy. Since Nigeria made its first commercial oil discovery in 1956 at Oloibiri, Niger Delta, by Shell-BP, oil and gas have remained central to the national economy.  At the time, Shell was the sole concessionaire; however, after independence, Nigeria extended onshore and offshore exploration rights to other foreign companies. Today, the oil sector serves as the cornerstone of Nigeria’s economy, accounting for roughly 80% of government revenue. In 2024, offshore activities accounted for 66.9% of Nigeria’s oil and gas market share, with projections estimating a 4.9% compound annual growth rate (CAGR) that could see the offshore sector reach $47.03 billion by 2031. 

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Alongside oil, marine renewable energy holds similar potential. Nigeria has over 14,000 MW of hydropower potential, with 2,062 MW currently harnessed through major infrastructure like the Kainji, Jebba, and Shiroro dams. Beyond inland waters, the nation’s 853 km coastline offers vast, untapped potential for tidal and wave energy, which generates electricity by harnessing the motion of ocean tides and surface waves. Despite this natural advantage, marine renewable energy remains largely unexplored in Nigeria. Prioritising these clean energy sources will improve electricity generation, support the transition to a low-carbon economy, and diversify Nigeria’s energy infrastructure.

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• Marine Biotechnology

Marine biotechnology involves using biological knowledge and techniques to develop new technologies, products, and processes from marine organisms such as algae, bacteria, plants, and ocean wildlife. It spans applications ranging from pharmaceutical drugs, chemical products, and enzymes to make advancements in aquaculture, seafood safety, biofuels, and bioremediation. In 2023, the global blue biotechnology market was valued at $1.32 billion and is projected to surge to $10.12 billion by 2031 with a CAGR of 7.8%. North America dominates the sector with 43.1% of the market share; Europe holds 23.3%; Asia holds 7.8%; while the remaining 26.5% is split across Africa, Latin America, and the Middle East. 

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Despite this rapid global expansion, Nigeria’s marine biotechnology sector contributes less than 0.1% to the global market. The sector is severely underdeveloped locally, constrained by inadequate research and development infrastructure, low funding, marine pollution, climate impacts, and low public awareness. However, the Ministry of Marine and Blue Economy has decided to explore this sector by creating a National Blue Biotechnology Strategy and taking advantage of the global industry gains. Under this plan, the ministry will collaborate with the National Biosafety Management Agency (NBMA) and the National Agency for Biotechnology Research and Development (NABRD) to harness growth in the sector and address these challenges. Key proposals include establishing biotechnology incubation centres, facilitating technology transfer from leading countries like Norway, Japan, and the United States, and integrating biotech modules in bioscience undergraduate programmes to train upcoming professionals. 

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• Coastal Tourism

Coastal tourism represents another vast, yet untapped sub-sector in Nigeria’s blue economy. The nation possesses remarkable marine resources including Ibeno Beach in Akwa Ibom, the longest sand beach in West Africa, Tarkwa Bay, a sheltered island beach close to Lagos’ harbour, and Bonny Island in Rivers, known for its rich historical heritage. Globally, the sector is valued at $6.45 trillion; yet, Nigeria remains one of the lowest-ranking African countries in the sector. To fully unlock the sector’s potential, Nigeria must attract investment into cruise and coastal boat tours, ecotourism projects, marine conservation parks, and beach resorts. These projects and businesses could yield up to 25-60% profits, create job opportunities, boost economic growth, and encourage non-oil diversification. Beyond boosting investments in the marine tourism sector, insecurity issues and environmental pollution must be addressed. Persistent threats continue to deter international and local tourists from exploring Nigeria’s coastal destinations.

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Nigeria’s Blue Economy Potential

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The marine and blue economy, across all subsectors, possesses immense growth potential. Globally,  the blue economy represents the world’s seventh-largest economy, employing over 3 billion people. It is projected to generate $3.5 trillion annually by 2030 and 300 million jobs across the world.  Internally, Nigeria has the ninth-largest delta in the world, and the capacity to contribute up to $296 billion annually to GDP. The sector could provide these opportunities for the country:

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• Job Creation: President Bola Tinubu aims to create five million marine jobs by 2035 through Nigeria’s Blue Economy Action Plan. The plan prioritises investments in fishery and aquaculture, marine transport, coastal tourism, and renewable energy, while addressing key issues such as marine insecurity, pollution, and illegal fishing. Targeted investments in these areas will create job opportunities in Nigeria’s coastal areas. Currently, these sub-sectors are underdeveloped and lack proper policy implementation and regulatory maintenance, stunting growth and limiting job creation. If Nigeria’s Blue Economy Action Plan is properly implemented, it will drive employment, expand trade, and stimulate economic growth and sustainable development.
• Food Security: Nigeria’s aquaculture and fisheries sector, if properly scaled, can address the country’s food security challenges. Fish is a staple in the Nigerian diet, accounting for nearly 40% of the country’s total protein consumption. Nigerians eat a lot of fish, with average annual fish consumption ranging between 11.2kg and 13.3kg per person. Nigeria consumes approximately 3.2 million tons of fish every year; however, internal production yields only up to 1.04 million tons of fish, leaving a large deficit of 2.5 million tons that is bridged by fish imports. Tackling challenges such as inadequate fish health management, overfishing, limited technical knowledge among fishermen, and weak policy enforcement will significantly boost local output to meet demand and feed the nation.
• Renewable Electricity Generation: Nigeria requires between 30,000 MW and 100,000 MW of electricity to power the nation; yet, total installed capacity stands at 13,625 MW, with actual generation fluctuating between 3,815 MW and 4,421 MW between January and April 2026. Harnessing marine energy sources can help bridge this huge electricity deficit. Hydropower alone holds over 14,000MW of potential, of which 2,062 MW is already being utilised, while tidal and wave energy remains vastly untapped. Expanding renewable marine energy sources will increase electricity generation and boost economic activities in the country. Beyond electricity generation, adopting renewable marine energy will support the country’s energy transition plan towards a low-carbon economy.

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• Economic Growth: President Bola Tinubu has set a target to expand Nigeria into a $1 trillion economy by 2030. Unlocking the blue economy’s full potential can increase government revenue by up to $296 billion annually, create millions of jobs, improve electricity generation, and strengthen food security. Nigeria can also expand its export sector by automating its ports and modernising infrastructure. Increased investment in the sector will also encourage non-oil diversification, ensuring Nigeria does not rely solely on one sector for the bulk of its income. Ultimately, the blue economy offers a clear pathway to exponential economic growth, sustainable development, and improved living standards for Nigerians.

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Nigeria’s Blue Economy Challenges

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Despite its vast potential, the blue economy is constrained by structural bottlenecks. The annual opportunity cost of Nigeria’s underdeveloped blue economy is ₦33.3 trillion, with emerging sub-sectors like marine biotechnology and coastal tourism remaining largely untapped. Beyond these underutilised sectors, the broader blue economy faces significant challenges. These challenges include:

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• Marine Pollution: The United Nations Environment Program (UNEP) estimates that plastic accounts for 85% of global marine waste. According to the World Bank, Nigeria ranks among the largest plastic producers globally, producing an estimated 2.5 million tons of plastic yearly that end up as waste in waterways, drainage channels, and dumpsites. This refuse problem is fueled by inadequate recycling systems, poor waste disposal infrastructure and collection systems, rapid urbanisation, and weak regulatory enforcement.  Additionally, oil pollution and spillages have severely undermined Nigeria’s blue economy, leading to the environmental degradation of the country’s marine resources. With over 6000 oil spills, averaging 150 annually, driven by illegal refining, poor infrastructure, pipe vandalism, and sabotage, traditional fishing grounds have been compromised, deepening poverty and hunger across coastal communities. 
• Weak Infrastructure: Ageing infrastructure continues to hamper the sector’s performance. Even though the maritime transport sector accounts for most of Nigeria’s international trade inflows, the country loses 20 billion daily, receiving only 20% of cargo destined for Nigeria. Ageing ports, harbours, ships, and terminals, and poor road networks and insufficient rail connections cause delays and inefficiencies in the sector. Refurbishing and modernising infrastructure are crucial to reversing these losses. Currently, the Lekki Deep Sea Port stands out as Nigeria’s most advanced port, handling 40.6% of the 129.3 million metric tonnes of national throughput in 2025. Other key ports, such as the Apapa and Onne ports, must adopt similar modernised infrastructure to boost overall efficiency. 
• Inadequate Funding: The sector is largely underfunded, posing risks to development. Nigeria’s blue economy requires $10 billion in capital funding over the next decade to unlock its full potential. By contrast, the 2026 budget allocation for the sector stands at ₦10.5 billion. As the Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, noted, this sum barely covers operational costs rather than boosting expansion and growth in the sector. Without substantial capital investments, critical sub-sectors like aquaculture, fisheries and maritime transport will remain underutilised, stunting development in food security and export trade.
• Unskilled Workforce: Sustainable growth and technological innovation across Nigeria’s blue economy require a highly specialised workforce. Modernised facilities and increased funding can only yield results if backed by technical expertise. The sector faces a shortage of adequately skilled seafarers, marine engineers, aquaculturists, and marine biologists. Furthermore, effective leadership across key agencies, such as the Ministry of Marine and Blue Economy, NIMASA, and NPA, requires seasoned industry expertise to drive strategic policy planning and execution.
• Insecurity: Marine and onshore insecurity remain major barriers to growth and deter investment in Nigeria’s blue economy. Piracy, illegal, unreported, and unregulated fishing, militancy, and armed sea robbery disrupt commercial shipping routes. Historically, the Gulf of Guinea has seen severe security threats, with 108, 142, and 154 seafarers kidnapped in 2018, 2019, and 2020, respectively. Meanwhile, onshore threats such as banditry and bandit attacks have discouraged local and international tourism. Tackling both onshore and offshore insecurity is essential to safeguarding the national blue economy, boosting investor confidence, and protecting lives.
• Policy Discontinuity: Political inconsistency across successive administrations remains a severe threat to long-term economic planning and development in Nigeria. Policy deprioritisation with every election cycle frequently slows down or abandons major national projects. Currently, Tinubu’s Renewed Hope agenda positions the blue economy as a cornerstone to achieving a $1 trillion economy by 2030, targeting the creation of millions of maritime jobs through strategic frameworks. However, given Nigeria’s history of policy discontinuity following election cycles, the trajectory of the sector remains vulnerable. If future administrations deprioritise these reforms or fail to implement them, it could disrupt the growth of the sector. Without continuity that transcends political administrations, Nigeria’s blue economy potential will never be optimised.  

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Potential Policy Options for Nigeria’s Blue Economy Growth

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Nigeria must introduce targeted, actionable policies to unlock sustainable growth in the blue economy. The sector possesses immense potential; what it requires now is structured policy planning and execution to scale. Key policy interventions should include:

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• Invest in Modern Infrastructure: Sustainable growth across Nigeria’s blue economy hinges on modernising its infrastructure. Allocating capital to state-of-the-art technologies and rehabilitating aging infrastructure across the maritime, oil and gas, coastal tourism, aquaculture and marine biotechnology sectors will significantly boost operational efficiency and expand national revenue. The Nigerian government should prioritise strategic infrastructure projects and leverage Public-Private Partnerships (PPPs) to attract private investments into port modernisation and infrastructure. 
• Explore Undertapped Sub-sectors: Coastal tourism and marine biotechnology remain two severely untapped, yet high-potential sub-sectors of Nigeria’s blue economy. Government policy should include targeted research in these areas and prioritise investment in these emerging fields. For coastal tourism, this means expanding investments in cruise and coastal boat tours, ecotourism projects, marine conservation parks, and beach resorts, while simultaneously addressing insecurity and marine pollution to attract international and local tourists. For marine biotechnology, establishing specialised research and development infrastructure and biotechnology incubation centres will be essential for building domestic capacity and securing a share of the global market. 
• Train Blue Economy Professionals: Human capital development is vital to sustaining innovation and growth across all marine sub-sectors. To address the current skill shortages, the Nigerian government should establish specialised training, upskilling, and practical industry apprenticeship programs. Integrating updated models on marine engineering, nautical science, aquaculture, and marine biology curricula in undergraduate programs will build a reliable supply of qualified seafarers, marine engineers, and researchers. Additionally, organising technical workshops for fish farmers will equip them with modern techniques to scale output and strengthen food security.
• Address Funding Deficit: Closing Nigeria’s estimated $10 billion blue economy funding gap is imperative to unlocking the sector’s $296 billion potential. The current budgetary allocations barely cover operational costs, which means closing the gap requires a financial strategy that pivots towards capital development. Expanding allocation for the ministry, creating specialised maritime development funds, and prioritising PPP investment will ensure growth and increase operational efficiency across the sector.

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Nigeria’s vast marine resources hold tremendous opportunities that could drive sustainable, long-term growth for the national economy. If fully harnessed, the sector can create millions of jobs, expand electricity generation, encourage non-oil diversification, and significantly contribute to government revenue. Nigeria can realistically reach its $296 billion annual potential through strategic policy planning and implementation, increased investment in all sub-sectors, workforce development, modern technology and infrastructure, and a safe marine environment. The resources exist, the potential is immense, but institutional agency is weak. The blue economy could be Nigeria’s next goldmine; however, progress remains slow. The marine biotechnology and tourism sectors must be fully developed, and environmental protection prioritised to ensure sustainable growth. Ultimately, the sector is poised for growth. Growth that can strengthen food security, improve living standards and boost national and global economic development.

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