Nigeria’s aquaculture sector has been grappling with record-high feed prices that threaten the livelihoods of thousands of local farmers. The sector imports significant amounts of fishmeal, spending over $1.2 billion annually to cover a large gap between high demand (around 3.6 million MT) and lower local production (around 1.2 million MT), relying on countries like Brazil, Oman, and Senegal for supplies, with the government actively working to boost local aquaculture to reduce this import dependency.
While the country remains the premier destination for fishmeal in sub-Saharan Africa, the latest market data for late 2025 revealed a sector struggling to stay afloat under the weight of extreme import dependency and a volatile currency.
The estimated 30–50 per cent increase in feed prices reflects the rising costs of imported concentrates and finished feeds (like Skretting and Aller Aqua) which many small-scale farmers can no longer afford.
Despite the pricing crisis, the market value has risen to $37.5 million, driven by the sheer volume of demand in the catfish and tilapia sectors. Farmers are now paying an estimated ₦42,000 for a single bag of feed—a staggering increase compared to historical averages. This price surge is directly tied to the 2024–2025 devaluation of the Naira, which has driven the cost of imported inputs up by as much as 50 per cent.
For Nigeria, the largest consumer of fishmeal in sub-Saharan Africa, the statistics paint a sobering picture. The country continues to import between 300,000 and 400,000 metric tons of fish feed and ingredients annually. The massive feed gap is filled primarily by industrial giants in Morocco and Mauritania, and increasingly by exporters as far away as Chile and Peru. Because domestic fishmeal production remains artisanal and lacks the quality required for high-performance aquaculture, local millers are forced to spend scarce foreign exchange on expensive concentrates.
“The high cost of fish is stemming from inadequate feed production in the country and the cost of transportation,” stated President of the Fisheries Cooperative Federation of Nigeria (FCFN). Mr. Mashi Sani. He emphasised the urgent need for domestic infrastructure, noting, “When we start producing feed in-house, the high cost of feed will drop and that will also lead to the drop in the high cost of fish.”
He lamented that despite Nigeria’s annual demand of 3.6 million metric tons of fish, domestic production falls short by more than two million metric tons, leaving the country dependent on costly imports that drain foreign exchange and export local jobs.
According to him, the country’s fishers and aquaculture farmers, who form the backbone of the sector, remain hampered by limited access to affordable credit, high interest rates, inadequate insurance coverage, and poor infrastructure.
Sani explained that Nigeria must take bold steps to establish a dedicated Fisheries and Aquaculture Development Fund with single-digit interest rates and repayment terms aligned with natural production cycles.
He further stressed the need to strengthen cooperative financing models to de-risk lending and ensure grassroots inclusion while also embracing public-private partnerships and blended finance models supported by government guarantees to attract private equity and venture capital into the sector.
The “feed gap” has become so wide that major international brands like Skretting and Aller Aqua now dominate the market for high-quality floating feeds, while domestic artisanal production remains too small to move the needle on national demand. This has triggered what experts call a regional “Food vs. Feed” crisis. Essential small pelagic fish, such as sardinella, are increasingly diverted to industrial plants for export rather than being sold in local markets.
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In response, 2025 has seen a surge in interest in alternative proteins. The Raw Materials Research and Development Council (RMRDC) recently intensified training for small-to-medium enterprises on the commercialization of Black Soldier Fly (BSF) larvae. I.C. Olife, Dean of the RMRDC Training School, highlighted the potential of these innovations to break the import cycle. “Our ultimate goal is to make livestock feed more affordable, reduce food costs, and improve national food security,” Olife stated during a recent industry summit. “Participants stand to gain the skills needed to implement BSF farming in even the smallest of spaces.”
According to IFFO, the Marine Ingredients Organisation, in 2024 fishmeal production increased by 26% and fish oil production rose by 12 per cent compared to the previous year. However, in May 2025, total cumulative fishmeal production decreased by approximately two per cent compared to the same period last year . The same occurred with total cumulative fish oil production, which declined slightly year-on-year.
IFFO noted that African fishmeal production saw a significant year-on-year increase through October 2025. This growth was largely anchored by the inauguration of the SAMAK Industrial Complex in Mauritania this past August, a facility capable of processing 100,000 tonnes of fish annually. However, very little of this “blue gold” stays within West Africa. Instead, it is exported to power the massive aquaculture industries of China and Europe, leaving Nigerian farmers to compete on the global market for the very resources harvested from their own regional waters.
The Dutch cooperative bank Rabobank warned in a recent report that fishmeal shortages will begin in 2028, while fish oil scarcity is expected to intensify throughout the decade.
The rising demand for fishmeal and fish oil, driven by the expansion of high-value species and the adoption of more intensive farming practices, is being impacted by supply disruptions caused by climate change and recurring El Niño events.
The main consequences of this shortage will be a further increase in demand inelasticity, leading to greater price volatility and the establishment of higher benchmarks during future supply shocks. This demand inelasticity has emerged in recent years, as supply disruptions have had a more pronounced impact on fishmeal and fish oil prices.
Fish feed prices have surge 18,000 per bag to N42,000. Consequently, many small-scale farmers struggle to maintain profitable operations.
Speaking with The Nation, the Focal Point, the International University Network on Cultural and Biological Diversity (IUNCBD), University of Calabar, Prof. Udeme Isong Enin, the expert noted that the aquaculture industry is currently grappling with a severe economic squeeze as the cost of feed reaches unprecedented levels, threatening the sustainability of local fish farming. According to him feed represents the “lion’s share” of operational expenses in aquaculture, often accounting for up to 60 percent of total production costs. The financial burden, he indicated is compounded by the high qualitystandards required for healthy stock, which necessitates feeds with a protein content ranging from 35 to 45 per cent .
Enim noted that the highest quality feeds are currently imported and remain prohibitively expensive for many local operators. “The problem is now developing local feed that can replace these ones—that can give the same or close quality of performance in terms of growth, but locally made and not as costly as this imported, that is the challenge. The crisis has been exacerbated by a “broken” global supply chain for essential grains, specifically maize, which is a foundational ingredient in fish feed production,” he stated. Enim highlighted that the disruption began during the COVID-19 lockdowns but has been severely intensified by the ongoing Russia-Ukraine war.
“Ukraine was supplying 60 per cent of the maize around the world. Because of the war, that supply chain had been broken. Ukraine is not able to export as much or maybe even to produce as much as they used to produce. So, even the feedstock that is maize for the production of fish feed is scarce, and the prices have gone up,”Enim explained. “
He ointed out the irony of relying so heavily on foreign production when the capacity for growth exists domestically. “Nigeria, we really need to do a lot because we need to produce those grains. Why should we allow Ukraine to produce grains and capture 60per cent of the market and we are here?”
Enim suggested that the solution lies in integrated farming models. “By producing maize locally and processing it directly into fish feed, farmers can bypass international volatility. There is a lot of opportunities. One can have the farms and produce the maize and then go ahead to produce the feed.”
Recently, retired professor of Fisheries, Lagos State University (LASU), Martins Agenuma Anetekhai, noted that the production of fish oil has become critical in the face of increasing feed prices.
He highlighted the critical role of fish oil production in strengthening food security and addressing nutritional needs.
He pointed out that fishmeal and fish oil are abundant in protein and essential omega-3 fatty acids, which are fundamental for aquaculture feeds.
Anetekhai further explained that fishmeal is a powdered substance created by extracting most of the oil from fish. This product can subsequently be processed into various feed ingredients for livestock. He also noted that fish waste can be transformed into fishmeal, which is a valuable high-protein feed ingredient.
Given the growing demand for aquaculture production, he stressed that the importance of fishmeal and fish oil as key components cannot be overlooked.
Nevertheless, he cautioned against obtaining fish oil from wild-caught fish, as this could lead to overfishing and is not sustainable for the environment. He emphasised the necessity of sourcing oil from alternative animal and plant sources.
His words: We should look for alternatives. Generally, people abroad look for fish meals from fishes that are not consumable. The Fishmeal industry is based on the fish that are not directly consumed by man in those Western countries. Here in West Africa, we eat everything fish.”
Anetekhai added that fish oil can be got through processing of cultured catfish. His words: “Our catfish for instance have a lot of oil. If you open the stomach you see a lump of oil. Usually it is wasted. It can be converted to other useful products.. We should develop a technology to extract it. Oil that comes when you are drying and the one that comes when you are degumming are the two different types of oil. They don’t contain much cholesterol. They can be converted to other useful things. For instance, they can be used to make soup, body cream and can be used to cook.”
