Nigeria Can Earn N70trn From Marine, Blue Economy Annually – Agbakoba

A former President of the Nigerian Bar Association (NBA), Dr. Olisa Agbakoba, has said the federal government can generate as much as N70 trillion annually from Nigeria’s Marine and Blue Economy sector if the industry is properly structured and harnessed.

Dr. Agbakoba, who is the Senior Partner at Olisa Agbakoba Legal (OAL), made the assertion in a policy document titled “Unlocking Nigeria’s Maritime Potential to Generate N70 Trillion Annually,” which he submitted to the minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, on Sunday.

He explained that the document outlines seven transformative revenue streams that could be unlocked through strategic legal, regulatory, and institutional reforms, enabling the government to realise the projected N70 trillion yearly from the sector.

According to the legal luminary, one of the most urgent priorities is strengthening the Cabotage Act of 2003, noting that over 25,000 foreign vessels allegedly operate illegally within Nigeria’s coastal waters, a situation he said deprives the country of massive revenue.

He stated, “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.”

Dr. Agbakoba stressed that the timing is critical, given the country’s worsening fiscal condition.
“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%.”

He added, “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 detailed 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.”

Dr Agbakoba, in the letter, however, stated that the sector can generate N14 trillion annually from Port Infrastructure Development, N12 trillion from Inland Waterways Development, and N8 trillion from Cabotage enforcement.

“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.

“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. 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.”

He explained further that Nigeria can generate N6 trillion from emerging Maritime Technologies, N16 trillion from Oil and Gas Maritime Services, N6 trillion from Oil rigs taxation and, N10 trillion from Maritime Security and Blue Economy

“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. 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.

“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. 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.”

He further explained that the 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,” he ended.