Unlocking Blue Economy Opportunities in Nigeria : A Path to sustainable Growth
Introduction to Blue Economy
An estimated 70% of the earth’s surface comprises water bodies, such as rivers, lakes, seas, and oceans, essential to human existence and survival. The ocean plays a crucial role in global prosperity by providing food, water, and employment opportunities, regulating climate, purifying waste, supporting biodiversity, and preserving the health of coastal and marine ecosystem.
The ocean’s resources provide food, jobs, and income for almost 3 billion people, most of whom live in developing countries. According to some estimates the ocean economy generates at least $2.5 trillion annually, accounting for approximately 3% of the global Gross Domestic Product (GDP) in 2020 while untapped opportunities like marine ecosystem services are valued at over $24 trillion. The need to conserve the ocean for global economic sustainability has led to the emergence of the Blue Economy.
Port of Lagos Apapa
The term ‘Blue economy’ is defined by the World Bank as the sustainable use of ocean resources to benefit economies, livelihoods, and ocean ecosystem health. The concept aims to market economic processes, social inclusion, and sustainable livelihoods while preserving marine and coastal ecosystems. It consists of the optimization of the use of marine resources for societal development while separating development from environmental degradation.
The blue economy is closely linked to the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 14, which aims to conserve and sustainably use the oceans, seas, and marine resources for sustainable development. Essentially, this concept strives to present a unified and intentional strategy for sustainable development, aiming to integrate the ocean into all levels of the economy.
The components of the Blue Economy as a starter
| Type of Activity | Ocean Service | Industry | Drivers of growth |
| Harvest of Living Resources | Seafood | Fisheries | Food Security |
| Aquaculture | Demand for Protein | ||
| Marine Biotechnology | Pharmaceuticals, chemicals | Research and Development (R&D) for Healthcare and Industry | |
| Extraction of non-living Resources, generation of new resources | Minerals | Seabed mining | Demand for Minerals |
| Energy | Oil and gas | Demand for alternative energy sources | |
| Renewables | |||
| Freshwater | Desalination | Demand for freshwater | |
| Commerce and trade in and around the oceans | Transport and trade | Shipping | Growth in seaborne trade; International regulations |
| Port infrastructure and services | |||
| Tourism and recreation | Tourism | Growth of global tourism | |
| Coastal Development | Coastal urbanisation | ||
| Domestic regulations | |||
| Response to Ocean Health Challenges | Ocean monitoring and surveillance | Technology and R&D | R&D in ocean technologies |
| Carbon Sequestration | Blue Carbon | Growth in coastal and ocean protection and conservation activities | |
| Coastal Protection | Habitat protection and restoration | ||
| Waste Disposal | Assimilation of nutrients and wastes |
Blue Economy Market in Nigeria
According to the Organisation for Economic Co-operation and Development (OECD) projections, the ocean economy could more than double its contributions to global value-added between 2010 and 2030, exceeding $3 trillion, if current trends continue. Given its abundant natural resources, Nigeria is well-positioned to benefit from this growth. With a coastline stretching approximately 870 km, a maritime area covering around 84,000 km2, and about 3,000 km of inland waterways, the country holds significant blue economy potential. Information obtained from the Nigerian Maritime Administration and Safety Agency (NIMASA) further indicates that Nigeria’s untapped blue economy potential is valued at $296 billion.
The Federal Government of Nigeria has recognized the potential of the Blue Economy and established the Federal Ministry of Marine and Blue Economy (FMOB) with the mandate to institutionalize the Marine and Blue Economy as an important pillar for economic sustenance and growth diversification while considering the ecosystem.
Ministry of Blue Economy Minister (Adegboyega Oyetola)
Some of the significant Blue Economy market opportunities in Nigeria include:
- Fisheries and Aquaculture: Fish is a key source of animal protein in the diet of many Nigerians, particularly those in rural areas. In 2021, the Nigerian Ministry of Agriculture and Rural Development estimated the nation’s fish demand at 3.6 million metric tonnes. However, local production met only about 31.19% of this demand, leaving a deficit of approximately 68.80%, which is subsequently covered through imports. This significant supply gap presents a valuable opportunity for investment in local sustainable fish production.
2. Mineral Extraction: With the growing global demand for rare earth elements and critical metals, Nigeria’s seabed presents an opportunity for investment in deep-sea mining. The country is rich in untapped mineral resources such as titanium, cobalt, nickel, iron, copper, and zinc, with potential deposits of gold and silver. Despite this plethora of minerals, no seabed mining activities currently contribute to the economy. To unlock this potential, NIMASA has sought support from the International Seabed Authority (ISBA) for deep-sea surveys and database development. Establishing a Seabed Authority, formulating national policies, and investing in technical expertise could position Nigeria as a key player in the emerging deep-sea mining sector within the Blue Economy.
3. Oil and Gas: Nigeria presents a compelling investment opportunity in deepwater oil exploration, boasting the largest remaining deepwater oil reserves, estimated at 5,038 million barrels of economically recoverable oil as of 2018. As a key component of the blue economy, deep-sea crude oil and natural gas production significantly contributes to GDP and is a major foreign exchange source. With offshore production projected to surpass onshore output, Nigeria’s national oil corporation forecasted that by 2022, two-thirds of the country’s oil production would come from deepwater reserves. This shift underscores the potential for investors to capitalize on Nigeria’s expanding offshore energy sector.
4. Shipping and Maritime Transport: Nigeria has over 8,000 km of navigable inland and coastal waterways, facilitating 40% and 60% of cargo movements in the North and Central African subregion. This strategic advantage positions Nigeria as a key player in maritime transport. The country’s potential as a significant logistical and commerce hub in the region is further enhanced with the addition of the Lekki Deep Sea Port and the new port in Badagry and the ongoing development of five additional ports.
5. Tourism: The Niger Delta coastline, along with the coastal areas of Lagos and Ondo states, holds potential for coastal and tourism development that could greatly boost Nigeria’s economy if effectively utilized. Beyond generating revenue, Nigeria’s coastal tourism offers opportunities to enhance recreational and educational experiences, drive infrastructure development, create employment, preserve cultural heritage and diversity, and promote the conservation of coastal and marine environments.
6. Biotechnology and Pharmaceuticals: The marine biotechnology market expanded from USD 30.64 billion in 2023 to USD 32.85 billion in 2024 and is projected to grow at a CAGR of 8.87%, reaching USD 55.59 billion by 2030. With its extensive coastal resources and rich marine biodiversity, Nigeria has a significant opportunity to enter this market. However, progress has been hindered by challenges such as inadequate manpower, poor infrastructure, limited research funding, and weak policy support. Private sector investment is needed to unlock this sector, while the government focuses on creating an enabling environment through policies and strategic investments.