Nigeria is sitting on a revenue goldmine. With the capacity to generate an estimated $44 billion, about N70 trillion revenue annually, her marine and blue economy is on a good stead to dislodge oil as economy’s major revenue earner. But the snag is that this humongous revenue remains largely untapped due to structural inefficiencies and outdated laws. Maritime industry experts and stakeholders are now clamouring for a comprehensive legal and institutional overhaul of Nigeria’s maritime sector to unlock its huge and untapped potential. AFIONG EDEMUMOH reports.
Renowned maritime law expert and former Nigerian Bar Association (NBA) President, Dr. Olisa Agbakoba (SAN), is not a man given to frivolities. For a man sufficiently schooled in the dynamics of maritime law, his positions and insights into Nigeria’s marine and blue economy are usually taken seriously.
So, when Agbakoba recently revealed that the maritime industry holds promise of swelling the nation’s revenue purse by as much as $44 billion, about N70 trillion annually, it was a call for action by various stakeholders to unlock the industry’s huge but largely untapped potential and ultimately, boost the nation’s revenue profile.
The $44b potential windfall from the marine and blue economy, which excites Agbakoba and indeed, other maritime law experts and stakeholders, is confirmed by projections from the Nigerian Institution of Marine Engineers and Naval Architects (NIMENA), which pegged the industry’s Gross Domestic Product (GDP) contribution at approximately $44 billion (N70 trillion) annually, with improved governance.
However, the N70 trillion estimate, according to analysis from the Sea Empowerment and Research Center (SEREC), reflects the aggregate economic value that a fully optimized maritime and blue economy could contribute to national output, not the level of revenue currently accruing to government. At roughly $44 billion annually, this potential would represent 6–7 per cent of Nigeria’s GDP.
While this scale is ambitious, experts say that it is not inherently unrealistic when benchmarked against maritime-driven economies globally. But even at this, Nigeria’s present reality tells a more sobering story. Despite hosting one of Africa’s longest coastlines and busiest maritime corridors, actual public revenue from the maritime and blue economy remains below N2 trillion annually.
Globally, the Blue Economy, defined by the World Bank as the sustainable use of ocean resources for economic growth, improved livelihoods and jobs while preserving the health of the ocean ecosystem, is the seventh largest economy in the world, with its value projected by the Organisation for Economic Co-operation and Development (OECD) to reach $3 trillion by 2030.
Nigeria, with its vast coastline, Exclusive Economic Zone (EEZ), and extensive inland waterways, is strategically positioned to capture a significant portion of this growth. Sadly, however, available statistics indicate that the country is currently losing an estimated N20 billion daily due to the state of the ports and other outdated infrastructure used in maritime operations.
This deplorable state of infrastructure and other operational bottlenecks are said to be forcing cargo diversion to neighbouring West African countries’ hubs in Cotonou, Tema, and Lomé. Besides, statistics further revealed that over 25, 000 foreign vessels are reportedly engaged in illegal or non-compliant trade within Nigerian coastal waters, effectively stifling indigenous economic growth.
It is against this backdrop that Agbakoba’s revelation becomes critical for Nigeria’s fiscal health. For one, the nation is currently battling with an acute fiscal crisis, with total public debt soaring to an estimated N152.40 trillion (approximately $99.66 billion) as of June 30, 2025. The debt servicing burden remains a crushing obligation for government as it took a bigger chunk of the Federal Government’s total revenue in 2024, amounting to 77.5 per cent, for instance.
Agbakoba, however, affirmed that “the maritime industry’s N70 trillion in annual revenue could transform our debt servicing burden from a crisis into a manageable obligation while funding the infrastructure and social investments Nigeria desperately needs.”
Accordingly, in a detailed letter to the Minister of Marine and Blue Economy, Adegboyegba Oyetola, dated November 30 and titled: “Unlocking Nigeria’s Maritime Sector Potential—a Pathway to Realising N70 Trillion Annually,” the maritime law expert was emphatic that a comprehensive legislative framework is the definitive way forward.
X-raying the proposals
Agbakoba’s transformative agenda for the maritime industry, essentially, calls for an immediate and comprehensive legislative framework comprising the enactment of nine new laws and the amendment of seven existing ones. These laws are designed to plug the regulatory and institutional gaps that currently allow massive revenue leakages and cripple local participation.
These new enactments, Agbakoba stressed, are essential for establishing a modern, structured, and secure operational environment that aligns with international best practices and leverages emerging technologies. For instance, the Ports and Inland Waterways Development Act will modernise port infrastructure and streamline governance, ensuring Nigeria’s ports compete globally and attract greater trade volumes.
On the other hand, the Marine Spatial Planning Act, based on Agbakoba’s proposal, will coordinate the sustainable use of maritime space, balancing economic, social, and environmental goals for long-term sector growth, while the Sustainable Fisheries and Aquaculture Act is designed to combat illegal fishing and promote blue food security, safeguarding Nigeria’s fisheries for future generations.
There is also the Marine Pollution Control and Climate Adaptation Act, to preserve the health of the marine ecosystem, aligning with the World Bank’s definition of the Blue Economy and positioning Nigeria as a responsible steward of its maritime resources.
The Coast Guard Establishment Act will create a dedicated, uniformed service for the civil enforcement of maritime laws, improving safety and regulatory compliance at sea; the Maritime Security and Piracy Suppression Act will build on the success of the Deep Blue Project, further enhancing anti-piracy operations and ensuring Nigeria’s waters remain secure for commerce and tourism.
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That is not all. The Legal Framework for Maritime Autonomous Surface Ships (MASS) will position Nigeria as a regional leader in adopting digital maritime services, preparing the sector for the future of shipping technology.
Similarly, the Electronic Bill of Lading Framework will digitalise and expedite trade documentation, reducing delays and improving efficiency in maritime trade.
Also, the Blue Economy Act will serve as a unifying piece of legislation, harmonising all sector activities under the new Ministry of Marine and Blue Economy and ensuring a coordinated approach to maritime development and regulation.
Together, these laws, Agbakoba noted, form the foundation for a robust, sustainable, and technologically advanced maritime sector in Nigeria.
The proposed amendments
The proposed amendments are focused on empowering existing regulatory agencies and closing revenue loopholes in major laws such as the NIMASA Act 2007, NPA Act 1999, NIWA Act 1997, Cabotage Act 2003, Merchant Shipping Act 2007, Petroleum Industry Act 2021, EEZ Act 1978, and Sea Fisheries Act 1992.
These legislative changes, according to Agbakoba, must be complemented by critical institutional reforms, including the establishment of a National Blue Economy Commission to serve as the overarching coordinating and implementation body, a Marine Pollution Task Force to enforce environmental standards, and the creation of specialised maritime courts to expedite the resolution of complex maritime disputes, which is essential for attracting global investors.
Addressing the $14.2 billion port crisis
The most immediate revenue opportunity lies in fixing Nigeria’s dysfunctional port system, a problem costing the nation an astronomical sum. The Sea Empowerment and Research Center (SEREC) said that the Nigerian maritime sector loses between $3 billion and $5 billion annually due to freight charges, port congestion, and poor multimodal integration.
More severely, a report by the African Centre for Supply Chain estimates a loss of about $14.2 billion annually from bottlenecks at Lagos ports alone.
Agbakoba projects that port infrastructure development can yield approximately N14 trillion annually, and this revenue stream is achievable by eliminating the inefficiencies that cause cargo to take an average of 19 days to clear in Lagos ports, a delay that costs the economy over $1 billion yearly.
“Nigeria loses N20 billion daily as cargo diverts to Cotonou, Tema, and Lomé due to poor port infrastructure,” Agbakoba lamented, noting that “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.”
He said modernisation initiatives, including ongoing digitalisation and rehabilitation projects, must be accelerated and supported by this decisive legislative framework.
Unlocking N12tr in inland waterways
The vast, yet underutilised network of inland waterways presents another formidable revenue opportunity, projected to yield N10-12 trillion annually.
“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,” Agbakoba noted.
This action would relieve the massive pressure on Nigeria’s road networks, which currently handle over 90 per cent of port cargo, incurring trucking costs of nearly N1 trillion yearly.
Recapturing wealth via cabotage, local content
The dominance of foreign interests in Nigeria’s coastal trade is arguably the single largest drain on indigenous maritime wealth, with Agbakoba projecting that stringent cabotage enforcement can generate about N8 trillion annually.
Reports have long indicated that foreign firms control as much as 90 per cent of the vessels operating in Nigeria’s waters.
While the Coastal and Inland Shipping (Cabotage) Act of 2003 aimed to reserve this trade for Nigerian-owned, -crewed, -flagged, and -built vessels, the provision of waivers has created a loophole exploited by foreign operators.
A former Governor of the Central Bank of Nigeria once estimated that the anomaly was costing the country as much as N2 trillion yearly.
“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,” the legal luminary stated.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has previously initiated a five-year plan to end Cabotage waivers, but this strategy requires the robust legislative backing proposed.
Furthermore, the Oil and Gas Maritime Services sector currently sees the loss of about N16 trillion annually, with over $1 billion in legal services, shipping contracts, banking services, and marine insurance flowing abroad.
The solution is simple yet powerful: “Enforcing the Local Content Act across all value chains and establishing a Maritime Development Bank would recapture the losses,” creating sustainable financial and professional capacity locally.
Nigeria’s maritime security dividend
Maritime Security and the broader Blue Economy, experts say, can generate between N8 to N10 trillion annually, a figure predicated on eliminating the immense financial burden of insecurity in the Gulf of Guinea.
Though the Nigerian Government’s Integrated National Security and Waterways Protection Infrastructure, the Deep Blue Project, has achieved a notable 30 per cent drop in piracy, the threat remains costly.
External reports underscore the severity of the threat: maritime piracy in West Africa cost over $800 million in 2017 (Oceans Beyond Piracy), and the conservative estimate for the direct and indirect cost of piracy to Gulf of Guinea nations is nearly $2 billion (Stable Seas, 2021).
Furthermore, SEREC estimates that Gulf of Guinea war-risk premiums alone cost Nigeria-linked trade $200 million to $400 million yearly.
Agbakoba insists that while the Deep Blue Project is foundational, “only a coast guard could adequately protect the maritime domain.”
The establishment of the proposed Coast Guard Establishment Act is the final piece of the security puzzle. “Enhanced security will attract international shipping, reduce insurance premiums by 40 per cent, and unlock coastal tourism revenues,” he said.
Indeed, maritime security remains a foundational economic issue. Sustained improvements in security not only reduce insurance premiums and capital flight but also restore investor confidence across shipping, offshore services, and coastal trade.
Looking to the near future, the sector must embrace emerging maritime technologies, which can generate between N5 to N6 trillion annually.
With the International Maritime Organisation (IMO) set to mandate Maritime Autonomous Surface Ships (MASS) by January 2028, Agbakoba stressed that “Early adoption through appropriate legal frameworks would position Nigeria as a regional hub for digital maritime services,” preparing the nation for the next phase of global maritime trade.
“The legal framework for MASS is thus a necessity, not a luxury,” he emphasized, adding that a crucial, yet often overlooked, revenue stream is Oil Rig Taxation, which could yield about N6 trillion annually.
Tax is currently not collected from oil rigs operating in Nigerian waters; a glaring legal loophole. Amending the NIMASA Act to establish a comprehensive taxation framework would immediately capture this revenue stream, providing a stable, non-oil source of income.
Push for diligent policy implementation
Industry stakeholders have largely endorsed the thrust of Agbakoba’s argument while emphasising the critical importance of implementation discipline. For instance, the Managing Director/Co-founder of Trucks Transit Parks Limited, Jama Onwubuariri, agrees that Nigeria can unlock very significant maritime and blue economy revenue, potentially on that scale over time.
Onwubuariri, however, said this is only possible if the country moves from policy ambition to disciplined execution. “The policy framework is not the constraint; implementation is,” he emphasised.
From his experience in port access management and maritime logistics, he identified three immediate priorities: governance and institutional alignment, operational efficiency and digitisation, and enforcement of existing laws.
Onwubuariri said: “Too many overlapping mandates at the ports and waterways create duplication, discretion and revenue leakages. The government should rationalise roles, enforce inter-agency data sharing, and publish clear Key Performance Indicators KPIs.”
He advocated for a credible national port community system/single window, end-to-end e-payments, and automated compliance processes to reduce human bottlenecks and improve collection, noting that efficiency is a revenue multiplier.
Most critically, Onwubuariri called for firm, transparent enforcement of cabotage, safety standards, local content and taxation—supported by technology, to close the non-compliance gap without necessarily requiring new laws.
“The opportunity is real, but to unlock it is simple: reduce discretion, digitise processes, and enforce consistently. That is how the sector translates potential into measurable revenue, jobs, and competitiveness,” he said.
The realistic way forward
Indeed, most of the reforms required to unlock the maritime value chain already exist on paper. For instance, the National Policy on Marine and Blue Economy (2025–2034) provides a comprehensive roadmap covering port modernisation, inland waterways development, cabotage enforcement, maritime security, local content, and emerging maritime technologies.
Experts, however, maintain that what has been missing, historically, is decisive execution backed by institutional coordination and political will. Although, SEREC agreed that the country can realistically unlock significant maritime-driven economic value, but this will not happen in an overnight leap to N70 trillion in annual fiscal inflows.
A more credible trajectory, the group argued, would see incremental gains in the short term, rising steadily as reforms mature. “With focused legislative amendments, strengthened regulatory institutions, and targeted infrastructure investment, the sector could deliver N3–N5 trillion in additional value within the next three years, scaling to N10–N20 trillion over the medium term,” Head of Research, SEREC, Eugene Nweke, said.
He further noted that key priorities to attain this must include the urgent amendment and enforcement of the Cabotage Act, modernisation of port operations through digitalisation and automation and the activation of inland waterways as viable commercial transport corridors.
Equally important is the need to empower maritime regulatory agencies with clearer mandates, operational autonomy, and technology-driven oversight to reduce revenue leakage and improve compliance.
“Maritime security also remains a foundational economic issue. Sustained improvements in security not only reduce insurance premiums and capital flight but also restore investor confidence across shipping, offshore services, and coastal trade.
“The roadmap, Agbakoba concluded, exists in the National Policy; all that is now required is decisive implementation.”While the world focuses on our oil and gas sector, the maritime sector quietly presents opportunities that could rival or exceed petroleum revenues while creating millions of jobs and establishing Nigeria as a true maritime power,” he underscored.
According to SEREC, “Ultimately, the N70 trillion proposition should be viewed not as an exaggerated claim, but as a long-term economic signal—a reminder of what Nigeria stands to gain if it treats the maritime and blue economy as a strategic national asset rather than a peripheral sector.
“Without decisive action, however, the figure risks joining a long list of well-articulated but unrealised development aspirations.”
For Nigeria, the maritime think-tank noted, “the choice is clear: move from policy rhetoric to implementation discipline, or continue to forfeit one of its most viable non-oil revenue frontiers in an era of mounting fiscal pressure.”
