Blue Economy and Sustainable Development in Nigeria: Issues, Challenges and Opportunities

Abstract

EXECUTIVE SUMMARY Nigeria loses about ₦33.3 trillion annually to untapped blue economy potential due to the underutilisation of its extensive coastal and inland waters, which function as disparate systems rather than a unified economic engine (Deloitte, 2022). Oceans, seas, and inland waters form the backbone of a marine and blue economy that generated about $2.6 trillion in gross value added in 2020 according to recent Organisation for Economic Cooperation and Development (OECD) assessments. This reflects a continued global expansion supported by updated economic modelling (OECD, 2024). It is also projected that by 2030, socio-economic activities facilitated by the maritime environment would be worth over 34.2 trillion dollars yearly, with the potential to generate about 300 million jobs worldwide (World Bank, 2017). These economic activities in the maritime domain make it the seventh-largest economy in the world, supporting the livelihoods of over 3 billion people (World Economic Forum, 2024). Harnessing the vast potential of the maritime environment constitutes a unique economic ecosystem commonly known as the blue economy. The Blue Economy encompasses a wide range of activities that depend on aquatic ecosystems, which include fisheries, tourism, and renewable energy (World Bank, 2017). Blue Economy, therefore, refers to the sustainable use of ocean, coastal, and inland water-based resources for economic growth while preserving the health of the ecosystem (Food and Agriculture Organization [FAO], 2022). Sustainable development, on the other hand, focuses on meeting human needs and aspirations while ensuring social inclusivity (United Nations [UN], 1987).The nexus between the Blue Economy and Sustainable Development, therefore, lies in the capacity of water-based sectors to create jobs, promote equitable growth, and enhance climate resilience. Despite its potential, the blue economy is under severe threat from overfishing, with nearly 90 per cent of global fish stock fully exploited or overexploited (FAO, 2021). It also faces growing challenges from pollution, including the entry of some 11 million tonnes of plastic into aquatic ecosystems annually, as well as many unsustainable human practices (UN Conference on Trade and Development [UNCTAD], 2021). Therefore, several countries are now adopting strategies to enhance their blue economies for sustainable development. Portugal enhanced its blue economy through an integrated National Ocean Strategy (2021 – 2030) that links ocean growth with environmental protection(Government of Portugal, 2021). It prioritises sustainable fisheries and aquaculture, marine biodiversity conservation, Marine Spatial Planning (MSP), offshore renewable energy, and greener, more efficient ports (European Commission, 2024; OECD, 2025). The country created specialised clusters and innovation hubs, such as Blue Economy Cluster and Hub ‘Azul’, to foster research and entrepreneurship (Portugal Trade and Investment Agency, 2023). Portugal also mobilised blue finance instruments, including the Portugal Blue Investment Initiative, to de-risk private capital and scale sustainable projects. The country’s blue economy now generates about €7.8 billion and supports 295,000 jobs, about 6 per cent of employment (European Commission, 2024). Norway enhanced its Blue Economy through integrated ocean management plans under a National Sustainable Ocean Plan (Government of Norway, 2023). Policy instruments emphasise ecosystem-based management, precautionary fisheries regulation, joint Barents Sea stock management, and stricter control of activities in vulnerable Arctic waters (Honneland, 2025). Norway promotes low-impact aquaculture, ocean-based renewable energy, carbon-neutral shipping, and marine biotechnology as key growth areas within environmental limits (Government of Norway, 2019). The country also invests heavily in marine research, digital ocean technologies, and international partnerships, while excluding deep-sea mining to reduce ecological risks (Ocean Panel, 2023). Japan is an island nation with limited land but a vast marine territory. Its blue economy exceeds $40 billion, driven by fisheries, shipping, marine robotics, and tourism (Sasakawa Peace Foundation, 2021). The fisheries sector is facing sharp production declines, dropping over 30 per cent since the 1990s (Huy, 2022). In 2022, fish catch dropped 7.5 per cent from the previous year, to 3.85 million tonnes, due to overfishing and climate change (Xinhua, 2023). To address this, Japan revised its Basic Act on Ocean Policy in 2018, integrating United Nations (UN) Sustainable Development Goals (SDGs) and promoting ecosystem-based management (Japanese Law Translation, 2024). The government developed autonomous underwater vehicles capable of diving to depths of up to 8,000 meters, enabling seabed mapping and resource exploration (Yomiuri Shimbun, 2022). Artificial Intelligence (AI) initiatives also optimised aquaculture feed production and monitoring of fish stocks, blending technology with maritime tradition (Global Seafood Alliance, 2023). These efforts demonstrate Japan ’s strategic balance of economic growth with ecological sustainability. South Africa maintains an Exclusive Economic Zone (EEZ) of 1.5 million square km. In 2014, South Africa initiated ‘Operation Phakisa ’to create over one million employment opportunities by 2030 in sectors like aquaculture, offshore renewable energy, and marine transport (South African Government, 2017). As of 2023, the Strategy had attracted over $3.6 billion in investments and created over 8,000 jobs (Parliamentary Monitoring Group, 2023). However, factors such as marine pollution, Illegal, Unreported, and Unregulated (IUU) fishing, and port inefficiencies continue to impede progress. South Africa is tackling these through maritime law reforms, satellite tracking of vessels, and port upgrades. Coastal cities such as Durban are also investing in climate-resilient infrastructure to mitigate flooding and erosion (World Maritime University, 2023). This strategy blends economic diversification with environmental management, making it one of Africa’s most advanced in blue economy governance. Nigeria has a vast coastline of 853 km, an EEZ extending to 200 nautical miles and inland waterways that cover more than 10,000 km (NIWA, 2025). The Niger, Benue, and Cross Rivers, alongside water bodies like Lake Chad and the Niger Delta estuaries, support agriculture, fisheries, transport, energy, and community livelihoods. These hydrological systems also provide the basis for a distinct Nigerian blue economy model that integrates coastal and inland water bodies into one sustainability framework. The country ’s blue economy covers offshore and onshore oil and gas along with fisheries and aquaculture, maritime transport, coastal tourism and renewable energy. Thus, Nigeria ’s marine and blue economy has the potential to contribute about $296 billion annually to the nation’s GDP if fully developed (NIMASA, 2025). Despite its vast aquatic endowments, the contribution of the marine and blue economy to Nigeria ’s GDP, however, remains negligible. The country also loses about $70 million annually to IUU fishing (UN Office on Drugs and Crime [UNDOC], 2021). Furthermore, mangrove forests disappear at a rate of between 2 and 3 per cent annually, while pollution and sedimentation affect more than 7,000 km of waterways, particularly in coastal areas (NIMASA, 2023). Some states, such as Bayelsa and Lagos, produce more than 45 per cent of national aquaculture output (FAO, 2024). However, these states continue to face cold-chain gaps, coastal erosion, and poor coordination. Inland freight by water remains below 5 per cent despite its cost advantage, raising logistics cost by 20 per cent above regional averages (World Bank, 2022). Other factors, such as port inefficiencies and regulatory bottlenecks, have also diminished Nigeria ’s . xxvi competitiveness within the Gulf of Guinea (World Maritime University, 2024). These problems reflect fragmented governance, weak data systems, and a lack of integrated Marine and Aquatic Spatial Planning (MASP). The Federal Government has begun addressing these weaknesses through various initiatives. The National Integrated Infrastructure Master Plan [NIIMP] (2020), the Deep Blue Project (2021), and the National Maritime Transport Policy (2022) signal important shifts. Also, the establishment of the Federal Ministry of Marine and Blue Economy (FMMBE) in 2023 and the adoption of the National Policy on Marine and Blue Economy (NPMBE) in 2025 represent major institutional and policy milestones. These efforts were geared toward enhancing security, maritime safety, port efficiency, and trade, in line with the President's Renewed Hope Agenda for improved economic diversification. However, without a unifying sustainability lens that integrates stewardship, innovation, and inclusion, progress will remain uneven. It was within this context that the President of the Federal Republic of Nigeria, His Excellency Bola Ahmed Tinubu, GCFR, mandated participants of Senior Executive Course (SEC) 47, 2025 at the National Institute for Policy and Strategic Studies (NIPSS) to research the theme: “Blue Economy and Sustainable Development in Nigeria: Issues, Challenges, and Opportunities.” The directive reflects a national commitment to reposition Nigeria’s maritime and hydrological endowments as engines of inclusive growth, environmental renewal, and long-term prosperity. The study provides evidence-based insights to guide the implementation of NPMBE 2025 and related frameworks. It demonstrates how a sustainability-centred blue economy can unify economic diversification, environmental stewardship, and social transformation across Nigeria ’s coastal and inland water bodies.