Nigeria’s shrimp industry stands on the cusp of a major expansion, fueled by a surge in global demand and premium pricing for wild-caught shrimp. The development, coupled with Nigeria’s significant potential in aquaculture, presents a golden opportunity for the nation to boost its export revenue and create numerous jobs. While Africa currently accounts for a modest fraction of global shrimp production, Nigeria leads the continent with an impressive 23,000 tons of wild shrimp harvested annually.
The global appetite for seafood, including shrimps, crabs, and prawns, is creating a substantial export opportunity for Nigerian entrepreneurs.
A 2024 report by the Food and Agricultural Organisation (FAO) revealed that global seafood consumption reached a staggering 162.5 million tons in 2021, with exports exceeding $120 billion last year.
The surge was driven by an expanding health-conscious population and the convenience of seafood. The FAO projects that seafood production must increase by 22 per cent by 2050 to meet growing global demands.
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According to Prof. Ochang Stephen , Nigeria possesses all the fundamental elements to transform into a major hub for shrimp production and export across Africa, However, he cautioned that realising this potential hinges on effectively tackling existing industry challenges.
Speaking on the current state of Nigeria’s shrimp sector, Prof Stephen who is a Professor of Aquaculture at Cross River State University of Technology, Calabar, highlighted the existing production deficit. “Currently, Nigeria produces around 12,000 metric tons of shrimp annually, valued at approximately $84 million. This falls significantly short of both our domestic needs and the vast export opportunities available. With an estimated annual deficit of 226,000 metric tons, it’s clear that our production capacity needs substantial expansion.”
Despite the production gap, Prof Stephen acknowledged the significant contribution of shrimp exports to the national economy. “In the first nine months of 2024 alone, Nigeria generated N53 billion from exporting frozen shrimps, prawns, crabs, rock lobster, and other sea crayfish. “Furthermore, the average export unit value for our shrimp in 2020 was a promising $8.9 per kilogram, significantly higher than the import value, underscoring the high demand and profitability of our shrimp on the global market,” he said.
Looking ahead, he emphasised the factors positioning Nigeria as a potential leader in African shrimp aquaculture. “Nigeria’s extensive 850,000 km coastline and rich marine biodiversity, particularly in the Niger Delta, Lagos, and Cross River, provide ideal natural habitats for shrimp. Coupled with our warm tropical climate, which allows for year-round farming of valuable species like the black tiger shrimp and white leg shrimp, we have a natural advantage,” he explained.
He further pointed to the growing domestic market, Nigeria’s membership in Economic Community of West African States (ECOWAS) offering access to a significant regional trade zone, and the vast untapped potential of Nigeria’s brackish and inland water bodies for aquaculture development.
“The high global demand for shrimp, combined with the favorable export economics where our export values exceed import values, presents a compelling economic incentive. Crucially, the Nigerian government is increasingly supportive of non-oil exports, including shrimp, with policies and incentives being developed to aid agribusinesses and seafood exporters. Finally, our large and youthful population provides a readily available labour force for the sector,” he added
However, Prof Stephen stressed that these advantages must be supported by addressing critical challenges. “While the government has implemented policies such as the National Aquaculture Strategy and various financial support mechanisms, the industry still faces significant hurdles. These include high investment costs for establishing shrimp farms, inadequate and costly feed and seed supply, limited access to credit and insurance, a shortage of technical expertise, and insufficient market infrastructure,” he cautioned.
He also highlighted environmental concerns related to site degradation and the need for stronger research and extension services to support aquaculture development. “Overcoming these constraints is paramount to unlocking the full potential of Nigeria’s shrimp industry and transforming it into a major contributor to both our domestic food security and our foreign exchange earnings. With targeted investments and strategic interventions, Nigeria can indeed become a dominant force in African shrimp production and export,” he said.
Experts contend that the escalating global demand presents a prime opportunity for Nigerian entrepreneurs to invest in the sector, particularly given the country’s reputation for possessing some of the most sought-after shrimp and prawn species worldwide.
“Nigeria’s shrimp industry holds immense potential for economic diversification, but faces significant challenges, according to Regional Director of the World Aquaculture Society African Chapter, West Africa Region, Lanre Badmus.
Badmus highlighted the country’s extensive coastline and vast brackish water resources, stating, “The country has a total brackish water area of 2,190,900 hectares… a huge potential.” He also pointed to the Niger Delta’s mangrove ecosystem, “one of the largest in Africa, estimated at 1 million hectares,” as a key asset.
Despite these advantages, the industry is hampered by “infrastructure deficit, limited access to finance, weak technical and extension services, regulatory gaps, and environmental threats such as pollution and mangrove loss,” he noted.
However, significant opportunities exist. Badmus emphasised “the global demand for high-quality shrimp,” Nigeria’s “strategic geographic and ecological advantage,” the potential for “employment generation for coastal communities,” and the “growing interest in sustainable aquaculture investment.”
To capitalise on these opportunities, he recommended several policy measures. These include developing a national shrimp aquaculture development strategy, investing in brackish water infrastructure… arteries, cold chain, promoting mangrove protection and eco-friendly farming, launching a Nigerian shrimp export brand and strengthening inter-agency coordination and data systems amongst others.
He stated: “With over 2 million hectares of valuable brackish water and a favourable export market, Nigeria is well-positioned to become a regional shrimp powerhouse… if the right policies and partnerships are put in place.”
A recent United Nations report highlighted the crucial role of aquatic foods in providing high-quality proteins and essential nutrients. With global production projected to increase by 10 percent to reach 205 million tons by 2032, the time is ripe for Nigerian entrepreneurs to seize the opportunities in the burgeoning global seafood market and contribute significantly to the nation’s economic growth. Addressing the challenges in the legal and investment landscape will be crucial for Nigeria to fully realize its potential in this lucrative sector.
In Lagos State, the government is actively supporting these initiatives to meet the growing demand for seafood driven by the increasing population. In Lagos State, the increasing population is fueling a demand for seafood that currently outstrips domestic production, a trend that is only expected to continue. Recognising this gap and the immense potential of aquaculture, the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, affirmed the government’s commitment to investing in collaborative initiatives aimed at fostering industry growth and supporting innovation.
These initiatives include empowering farmers with vital knowledge and skills across the aquaculture value chain, encompassing fish breeding, management, harvesting, processing, smoking, storage, and marketing. Furthermore, the government is focused on equipping farmers with strategies to mitigate risks and safeguard their investments.
Currently, Indian-owned Atlantic Shrimpers is Nigeria’s largest seafood exporter, with investments exceeding $100 million. Other key Nigerian players are also contributing to the sector.