Nigeria historically depended on Agriculture as the mainstay of it’s economy before the discovery of crude oil.
From 1960 to 1969, the sector accounted for an average of 57.0% of GDP and generated 64.5% of export earnings. From 1970 to late 2000s, the sector’s contribution to GDP and export earnings steadily declined, because Nigeria’s focus shifted to petroleum exploration.
The fall in crude oil prices in recent years triggered conversations around the role of Agriculture in economic diversification. Nonetheless in addition to the progressive revamping of agriculture the additional socio economic pathway of the blue economy has been brought to the fore in recent times in the Nigerian economic road map.

A New Ministry

In 2022 recognizing the strategic importance of the blue economy the former Vice President, Professor Yemi Osinbajo had on January 17, 2022 launched the Expanded Committee on Sustainable Blue Economy in Nigeria (ECSBEN) with the mandate to recommend ways of strengthening the governance framework and infrastructural development of the maritime industry. The Committee had members drawn from Rivers, Lagos, Delta, Akwa Ibom, Borno, Ogun, Ondo, Cross River, Bayelsa, and Edo states. Others are the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA), Maritime Academy of Nigeria (MAN) Oron and the Chief of the Naval Staff. The Ministers of Foreign Affairs, Power, Finance, Environment, Trade and Investment, Agriculture and Water Resources and representatives of the Lake Chad Basin Commission and Nigeria Economic Summit Group are also members.
In August 2023,the current administration pioneered a Ministry of Marine and Blue Economy, for the first time in Nigeria to actualize Nigeria’s blue economy goals.

What is The Blue Economy and Why it is important?

The Blue Economy involves the sustainable use of ocean and marine resources for economic growth, improved livelihoods, and job creation, while preserving marine and coastal ecosystems.
Blue Growth is the long term strategy to support sustainable growth in the marine and maritime sectors as a whole.
It is important to state that about 80% of global trade by volume is carried by sea,350 million jobs worldwide are linked to fisheries, 34% of crude oil production will come from offshore fields by 2025 while 50% of fish for human consumption is provided by aquaculture.
The blue economy is recognised on a global stage and has been embedded in the UN Sustainable Development Goals (SDGs). The 17 interlinked global goals were unanimously adopted in 2015 by all 193 UN member states. While the ocean fits neatly into SDG14: Life Below Water, it also plays a vital role in achieving the entire UN sustainability agenda.
Nigeria had previously extended its Exclusive Economic Zone, from 200 Nautical Miles to 350 Nautical Miles which leaves much opportunity for several economic activities which are mentioned below.

Fisheries

Fisheries are an essential aspect of the blue economy sector in terms of employment, food security, enterprise development, foreign exchange earnings, livelihoods of many rural people and nutrition. Over 10% of the world population are economically dependent on fisheries as a source of employment, of which the majority are females.
In Nigeria, over 1.477.651 people are reportedly engaged in the fisheries sector. The fisheries subsector contributed about 2% to the national GDP in 2023.The Nigerian fisheries sector is dependent on the artisanal fishers that produce over 74% of the nation’s total domestic production. It is an indication that this sector is not well utilized and developed. The fish demand is around 2.8 million tons annually and we can only produce less than a million tons annually and so the balance is imported to make up.
Relevant figures indicate that the value of fish imports keeps increasing which has been attributed to the increasing growth rate of the Nigerian population. Fish appears to be one of the major food commodities with the highest imports bills. In the third quarter of 2023, Nigeria spent N50.78 billion importing fish.The implication of importation to meet the national fish demand ranges from health to socioeconomic impacts. The limited capacity in the fisheries sector is depriving Nigeria of the economic benefits this sector provides.
However with the introduction of the blue economy initiative in Nigeria, innovation and growth in the coastal, marine sectors could deliver food security, and serve as a foundation for sustainable development. The goal is to diversify Nigeria’s economy beyond land-based activities and leverage opportunities along her coasts to harness our indeginous fishing not just for consumption but for exports.

Tourism

Tourism can positively impact the blue economy when properly planned, developed and managed. When this happens, nature heals, marine life returns, local communities are engaged and empowered, and culture thrives. Worldwide, about half of all tourists choose a coastal destination for their holidays. The benefits they bring are immense. Tourism accounts for about 40% of the ocean economy.The sum of the economic activities generated by tourism include supporting businesses of all sizes, providing jobs and serving as a pillar for a country’s economy. Tourism is a lifeline for developing economies. Indeed, data from the UN Conference on Trade and Development shows that the ocean economy represents 30-50% of the GDP of most of the SIDS.

The Nigerian coastline stretches to a total of eight states, which are estimated to account for 25% of the national population. Based on the morphological, vegetational and beach type characteristics, the coastal zone is classified into four broad regions namely, from west to east, the barrier lagoon coast, the transgressive mud coast, the Niger Delta, and the strand coast. The coastline comprises inshore waters, coastal lagoons, estuaries and mangroves, especially in the Niger Delta area. The major economic activities in the coastal zone are oil and gas and exploitation, fishing, shipping, agriculture, sand-mining and tourism. The coastal area is dotted by ports and large metropolitan and urban centers including Lagos. However, coastal zones in Nigeria face a range of challenges, such as coastal erosion, flooding, overexploitation of natural resources, marine and coastal pollution, and mangrove depletion and Nypa palm invasion.
Issues like Flooding, Pollution , Plastic waste & oil spill,coastal Erosion need to be dealt with for effective investment projects to commence and thrive.

For instance,the Thai authorities decided on a three-year visitor closure in Thailand’s Maya Bay to regenerate the ecosystem. Over this period, they worked on construction and restoration to plant more corals, create a conducive environment for wild residents to return, and improve travelers’ experience. Today, the bay has reopened and it appears to be one of its most iconic tourism and revenue generating destinations. In February 2024 alone revenues soared to about Seven Million United States Dollars for entrants/tourists per month.

Local Artisan Markets that showcase artisan work and crafts are vital to countries economies. Sellers showcase their products to tourists, who are often eager to purchase them as souvenirs and collectable decorations. In island and coastal nations, many of these products are made of materials from the ocean. Often, craftsmen use dead coral, washed-up shells, or sand, which are natural, renewable resources.

According to the UNWTO, Marine Ecotourism which involves observation and appreciation of nature, education, environmental protection, and community engagement. integrates ecological protection with the social and economic development of local communities. Marine ecotourism is that which corresponds explicitly to coastal and marine ecosystems. Such tourists usually visit natural, virgin areas with little to no development to observe wild species or scenic landscapes. This form of tourism highly regards nature and culture, where it focuses on protecting or improving the natural environment and preserving and respecting cultural heritage.

This type of tourism is fundamental to blue economy development as it focuses on safeguarding and improving destinations, including their resources, communities, sites, and organisms.
Without a doubt tourism contributes to blue growth, where economic and environmental benefits are not mutually exclusive. Where incentives are correctly aligned, tourism acts as a bridge between economic, social, and environmental sustainability, directly feeding into blue economy development.

Renewable Energy

In Nigeria the power sector has faced its own fair share of challenges which have been passed on to consumers and end users raising overheads of economic endeavours and even day to day life.
Statistics show that Nigeria generates an average of 4,000MW of electricity for an estimated 200 million citizens across the country. But this is hardly sustainable, as the grid continues to record incessant collapse due to gas supply constraints, transmission infrastructure vandalism, and liquidity.
To forestall grid collapse, the Transmission Company of Nigeria, TCN, once underscored the need for sufficient gas supply to the power plants. It stated thus:”Gas constraints continue to impact good flexibility and stability. Ensuring sufficient gas supply to power generating stations is crucial for grid stability as sufficient generation allows for better grid management in the event of sudden generation losses…”
However new strides in the energy transition have shown that relaince on gas alone which is a fossil fuel may not be adequate to address the power sector issues. A fusion of the sustainable use of ocean energy and off shore wind may just be the solution Nigeria needs to meet its power generation obligations.
Ocean Energy allows securing resources and establishing a circular economy through sector coupling based on electricity, heat, water, and hydrogen in coastal areas.In order to raise efficiency developmental projects on putting ocean-based renewable energy into practical use need to be integrated into our power generation policy.
We also need a collaborative international platform dealing with data exchange, technology transfer, test application, and knowledge sharing.
It is possible to power any off-grid use in the ocean with marine energy, which includes power from waves, tides and ocean currents.

Conclusion

Real estate in Nigeria presents compelling opportunities, but it must be approached with legal precision and foresight. At Tsumba & Tsumba Legal Practitioners, we offer robust legal advisory, due diligence, dispute resolution, and transaction structuring services tailored to investors, developers, and corporations.