UNLOCKING NIGERIA’S MARITIME SECTOR POTENTIAL – A PATHWAY TO REALISING N70 TRILLION ANNUALLY
30th November, 2025
Mr. Adegboyega Oyetola
Honourable Minister of Marine and Blue Economy
Federal Ministry of Marine and Blue Economy
Abuja
Dear Honourable Minister,
RE: UNLOCKING NIGERIA’S MARITIME SECTOR POTENTIAL – A PATHWAY TO REALISING N70 TRILLION ANNUALLY
I write to draw your attention to my recent letter to the Honourable Minister of Finance and Coordinating Minister of the Economy regarding transformative reforms needed to achieve a quadrillion naira economy within 10 to 15 years. While that letter focused primarily on land titling, credit economy expansion, and agricultural mechanisation, the maritime sector represents an equally critical pillar for Nigeria’s economic transformation.
The maritime sector is potentially Nigeria’s largest economic sector outside oil and gas. The Nigerian Institution of Marine Engineers and Naval Architects (NIMENA) projects that the maritime industry could contribute approximately $44 billion (N70 trillion) annually to Nigeria’s GDP with improved governance and regulation.
This opportunity comes at a critical time. Nigeria faces an acute fiscal crisis with total public debt at N152.40 trillion (approximately $99.66 billion) as of June 30, 2025. Our debt servicing burden consumed N12.36 trillion (35.26% of the total budget) in 2024 and is projected at N15.4 trillion for 2025. This exceeds the combined budgets for education, health, and defence, and far surpasses the World Bank’s recommended threshold of 22.5%. The debt servicing-to-federal-government-revenue ratio has risen from 76.8% in 2023 to 77.5% in 2024. Meanwhile, the 2025 budget’s projected deficit of N13.39 trillion will be funded 69% through additional debt. While we continue this unsustainable borrowing cycle, enormous revenue opportunities remain untapped in the marine and blue economy sector.
I have attached a comprehensive policy statement detailing seven transformative revenue streams that can be unlocked through strategic legal, regulatory, and institutional reforms. The transformative element of this proposal is that the National Policy on Marine and Blue Economy (2025-2034) already contains most of the required legal and institutional reforms. I shall briefly set them out as follows:
- Port Infrastructure Development (N14 trillion annually): Nigeria loses N20 billion daily as cargo diverts to Cotonou, Tema, and Lomé due to poor port infrastructure. Enacting the Ports and Inland Waterways Development Act and amending the NPA and NIWA Acts would modernise our ports and unlock revenues from tariffs, cargo handling fees, and special economic zones.
- Inland Waterways Development (N10-12 trillion annually): Our 42 inland waterways lie abandoned. Dredging the River Niger and River Benue to create a functional multimodal transport system would reduce transportation costs, decongest roads, and generate revenues from tolls, ferry services, and tourism.
- Cabotage Enforcement (N8 trillion annually): Over 25,000 foreign vessels illegally trade in our coastal waters. Strengthening the Cabotage Act 2003 would recapture these revenues while creating jobs for Nigerian seafarers and shipping companies.
- Oil Rig Taxation (N6 trillion annually): Tax is currently not collected from oil rigs operating in Nigerian waters. Amending the NIMASA Act to establish a taxation framework would immediately capture this revenue stream.
- Oil and Gas Maritime Services (N16 trillion in annual losses): Over $1 billion in legal services, shipping contracts, banking services, and marine insurance flows to foreign firms. Enforcing the Local Content Act across all value chains and establishing a Maritime Development Bank would recapture these losses.
- Maritime Security and Blue Economy (N8-10 trillion annually): While the Deep Blue Project achieved a 30% drop in piracy, only a coast guard can adequately protect our maritime domain. Enhanced security would attract international shipping, reduce insurance premiums by 40%, and unlock coastal tourism revenues.
- Emerging Maritime Technologies (N5-6 trillion annually): The IMO will mandate Maritime Autonomous Surface Ships by January 2028. Early adoption through appropriate legal frameworks would position Nigeria as a regional hub for digital maritime services.
The attached policy statement outlines a comprehensive legislative framework comprising nine new laws to be enacted and seven existing laws to be amended, supported by critical institutional reforms. The roadmap exists in your National Policy; what is required now is decisive implementation.
Nigeria stands at a crossroads. While we continue borrowing to finance development, the maritime sector offers immediate revenue opportunities that could rival or exceed petroleum revenues while creating millions of jobs. The fiscal mathematics are compelling: N70 trillion in annual maritime revenue could transform our debt servicing burden from a crisis into a manageable obligation while funding the infrastructure and social investments Nigeria desperately needs.
I respectfully urge your Ministry to prioritise the legislative and regulatory reforms detailed in the attached policy statement.
Please accept the assurances of my highest regards.
Yours faithfully,
Dr. Olisa Agbakoba SAN
Senior Partner
Olisa Agbakoba Legal (OAL)
Enclosure: Policy Statement on Legal, Regulatory and Institutional Reform to Pull Revenue to Drive the Marine and Blue Economy
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