The concept of the blue economy, as articulated by the World Bank, transcends being a mere economic buzzword. It embodies the sustainable exploitation of oceanic resources to drive economic growth, livelihood improvement, and ecosystem preservation.

According to Ocean Panel, a healthy ocean contributes $1.5 trillion to the global economy annually and has an estimated asset value of $24 trillion.

Blue economy has a huge importance to national development, especially for a maritime nation. It goes beyond shipping as well as oil and gas, to encompass all the activities that involve harnessing ocean resources including fishery, renewable energy, offshore power, support network and repairs.

The African Union (AU) estimates that the blue economy currently generates about $300 billion for the continent, creating 49 million jobs in the process. Nigeria, with its extensive coastline, finds itself at a pivotal juncture, ready to tap into its vast maritime potential, estimated at a staggering $296 billion. This article delves into the multifaceted avenues that Nigeria can explore to harness its blue economy and usher in a new era of prosperity.

1. Port Development:

Central to any maritime economy are its ports, acting as gateways for trade, commerce, and industry. Nigeria’s strategic location, with a coastline stretching over 420 nautical miles and an exclusive economic zone (EEZ) spanning 200 nautical miles, positions it as a maritime powerhouse. The government’s emphasis on developing deep seaports, such as the Badagry, Ondo, Ibom, Bonny, and Benin River Ports, underscores its commitment to modernizing maritime infrastructure. These projects, when operational, hold the promise of reducing vessel turnaround time, easing congestion, and drawing significant foreign direct investment. The ambitious $2.59 billion Badagry Deep Seaport, alone, is forecasted to create a quarter of a million jobs and generate $53.6 billion in revenue over a 45-year concession period.

2. Catalyzing Indigenous Shipping via the Cabotage Act

To seize control of its maritime destiny, Nigeria enacted the Coastal and Inland Shipping (Cabotage) Act in 2003. This legislation was designed to empower Nigerian shipowners with exclusive rights over locally generated seaborne trade. However, the past misuse of waivers dilutes its intended impact. A calculated and judicious administration of waivers by the Minister of Marine and Blue Economy can reinvigorate the Cabotage Act. This strategic approach would empower Nigerian shipowners, safeguarding local participation and fortifying employment opportunities within the sector.

3. Curtailing illegal fishing activities through fishing regulation

Nigeria’s oceans are not only a source of economic opportunity but also a delicate ecosystem that requires vigilant stewardship. Rampant illegal, unreported, and unregulated fishing activities by foreign vessels have siphoned revenue and employment prospects from the nation. To address this, the introduction of the Maritime Zone Bill is crucial to safeguarding aquatic resources. Concurrently, revisiting maritime laws to establish punitive measures for foreign trawlers involved in illegal fishing can act as a deterrent. By prioritizing responsible fishing practices, Nigeria can ensure sustained economic gains from its marine resources.

4. Cabotage Vessel Financing Fund

Twenty years since the inception of the Cabotage Act, the Cabotage Vessel Financing Fund stands as a symbol of untapped potential. This fund, originating from a 2 percent contribution by indigenous shipowners, was conceived to provide financial support and ship loans to bolster domestic coastal shipping. While over $350 million and N16 billion stand earmarked for disbursement, the process remains incomplete. Accelerating this disbursement, as approved by President Muhammadu Buhari, could galvanize the shipowning sector, thereby engendering substantial job creation and economic growth.

5. Ship Repair Industry

The absence of comprehensive ship repair facilities is an economic leak that Nigeria must plug. A thriving ship repair sub-industry, focused initially on smaller vessels, marine crafts, and tugboats, can generate employment and conserve valuable capital. As it stands, shipowners are compelled to seek repair services abroad, leading to substantial capital flight. Initiating localized ship repair operations would not only save capital but also foster job creation, ultimately contributing to the nation’s overall economic self-sufficiency.

Challenges

Realizing the potential of Nigeria’s blue economy is not without its challenges. The fragile ecosystem faces threats from coastal development, pollution, acidification, overfishing, and insecurity. Crafting and enforcing sustainable management practices are pivotal to maintaining the delicate balance. Moreover, climate change, environmental mismanagement, maritime security, and robust governance and legal frameworks constitute hurdles that require dedicated attention.