The seven categories of coastal and marine resources listed below are prevalent in Nigeria as they are deemed the most significant and hold the potential for generating substantial revenue for the Nigerian government.
1. Fisheries
Fisheries production, particularly in the marine sector, holds significant importance for the socio-economic development of Nigeria and contributes to the nation’s economic growth as measured by the Gross Domestic Product (GDP). Nigeria is endowed with abundant marine fisheries resources that have the potential to bolster its production capacity. However, the supply of fish from domestic sources falls considerably short of the demand among its citizens. The fishery sector plays a pivotal role in employment generation, ensuring food security, fostering enterprise development, and earning foreign exchange. Additionally, it holds considerable importance for the livelihoods and nutritional needs of numerous rural communities.
Within Nigeria’s Exclusive Economic Zone (EEZ), the nation has exclusive rights to explore and exploit fish and other natural resources. Nine out of the 36 federal states in Nigeria have coastlines along the Atlantic Ocean. Artisanal fishing is predominantly practiced in Nigeria’s brackish and coastal waters, while industrial fishing operations are restricted to areas beyond the 5 nautical mile limit established by the 1992 Sea Fisheries Act. Fisheries resources targeted by marine artisanal fishermen includes various species including croakers, bonga, shad, catfish, sardines, soles, shiny-nose, and certain types of sharks, among others. Industrial coastal fishing primarily involves trawling for demersal finfish, shellfish, and penaeid shrimps. Nigeria boasts approximately 104 marine fish species spanning 50 families, with croakers, grunts, various soles, catfish, and shrimps dominating the species composition.
In Nigeria, the supply of fish to meet the growing demand is primarily sourced from two main channels: domestic fish production and fish importation. Importation, in particular, has played a significant role, accounting for over half (56.0%) of the fish supply in 2010. Despite Nigeria’s abundant marine resources, rivers, lakes, and creeks, the country continues to rely heavily on fish imports. In 2015, Nigeria spent over ₦125 billion annually on importing 1.90 million metric tons of fish. Import figures for fish have consistently risen, with fish imports having the highest import bills among major food commodities between 2006 and 2010, averaging ₦113.63 billion annually. This upward trend in fish imports can be attributed to the increasing population of Nigeria, coupled with a decline in domestic fish production.
According to the 2018 Food and Agriculture Organization (FAO) report, Nigeria’s annual fish demand stands at an estimated 3.32 million metric tonnes, whereas domestic production only reaches about 1.12 million metric tonnes. This leaves a substantial deficit of 2.2 million metric tonnes, which is largely met through fish imports, amounting to approximately 700 million USD annually. Consequently, Nigeria ranks as the fourth largest importer of fish globally, following China, Japan, and the United States.
2. Oceanic Energy
Similar to hydroelectric and geothermal power, the ocean holds potential as a renewable source of electric energy. Energy from the ocean can be harnessed through various means such as tides, winds, waves, and the temperature differential between the ocean’s surface and deeper layers.
In certain regions worldwide, such as the Barrage de la Rance in France, tidal energy is already being utilized to produce electrical power. Additionally, offshore “wind farms” in places like Denmark are successfully generating electricity. Nigeria possesses significant potential for the development of offshore wind farms, wave power, and Ocean Thermal Energy Conversion (OTEC) in the near future.
Despite Nigeria’s population exceeding 180 million people, the country generates less than 6,000 megawatts of electricity, predominantly from gas turbines. Given its expansive maritime domain, Nigeria has the capacity to produce substantially more megawatts of electricity from tides, winds, and waves sourced from the ocean.
3. Shipping
In Nigeria’s maritime sector, shipping plays an important role as one of the primary drivers of the economy. Despite being an oil-exporting nation, Nigeria relies heavily on imports, making shipping a vital component of its economic activities. A significant portion of Nigeria’s international cargo trade is conducted through maritime transportation, amounting to approximately 180 million tons of sea-borne cargo annually. The annual freight charges for these shipments total around $6.8 billion (₦1,088 billion), with over 80% of this revenue earned by foreign companies. However, there exists a substantial opportunity for Nigerians to invest in vessel ownership.
Oil remains the cornerstone of Nigeria’s economy, contributing approximately 55% to the Gross Domestic Product (GDP), 95% to export earnings, and about 70% to governmental revenue. Since much of Nigeria’s oil is extracted from shallow or deep waters, marine craft such as supply boats, tug boats, and barges are essential for accessing and maintaining operations in these areas. These vessels are typically leased to the oil and gas industry on a continuous basis. Despite the significant value of freight charges on oil exports, exceeding $84 million annually, none of this revenue benefits Nigeria directly, as Nigerian entities do not own any Very Large Crude Carriers (VLCCs) transporting Nigerian crude oil. Nigerians involved in the oil trade primarily act as commission agents.
Given Nigeria’s status as a major oil and gas producer and trader, investors in the tanker trade can expect full utilization of their vessels on a sustainable basis, particularly for national cargo transportation. Such investments would also support robust trade for operators of gas carriers. Additionally, industrial chemicals constitute a significant component of Nigeria’s freight trade imports. Generally, investments in various types of tankers, including VLCCs, Suezmax, LNG/LPG carriers, and ULCCs, remain commercially viable for facilitating Nigeria’s crude oil trade.
4. Tourism
Tourism represents the most rapidly expanding sector of the global economy, supporting over 200 million jobs worldwide. In the United States alone, tourism has contributed an economic boost of $478 billion. With 700 million individuals traveling internationally, tourism ranks among the top five economic contributors for 83% of all countries and stands as the primary economic driver for 38% of nations.
In Nigeria, tourism thrives along its coastlines, offering visitors the opportunity to embark on boat cruises and coastal excursions to explore the natural beauty of the Atlantic Ocean and pristine beaches. This form of tourism not only provides leisure and relaxation but also generates revenue for both state and federal governments, which is then allocated to various developmental projects. For instance, the Lagos state government benefits significantly from revenue generated by popular beaches such as Eleko and Lekki. Additionally, the growth of the hospitality sector has led to the establishment of guesthouses, hotels, and resort centers in these areas, further contributing to revenue generation and employment opportunities for local residents.
5. Mining
Humanity initiated ocean floor mining for resources like diamonds, gold, silver, metal ores such as manganese nodules, and gravel since ancient times. Diamonds, for instance, are more abundant and of higher quality in oceanic deposits compared to land, although extracting them is significantly more challenging. The process involves dredging the ocean floor to bring up sediment to sift through for valuable gems. Despite the difficulty of this process, it is anticipated to become a substantial industry once technology advances sufficiently to address logistical challenges.
Among the marine mineral resources significantly contributing to Nigeria’s blue economy are offshore oil deposits. Nigeria possesses extensive reserves of natural gas and crude oil, with estimates of over 166 trillion standard cubic feet (TSCF) of natural gas reserves and 28.5 billion barrels of recoverable crude oil reserves, a large portion of which is situated offshore.
Reports indicate a notable increase and potential of offshore oil and gas exploration over the past three decades. The proportion of energy needs met through offshore oil extraction rose from around 20 percent in 1980 to 30 percent by 2014, driven by ongoing discoveries in offshore reserves (OECD, 2016). Similarly, the potential for gas extraction from both deep and shallow waters is projected to increase from 17 million barrels per day in 2014 to approximately 27 million barrels per day by 2040 (OECD, 2016). Overall, the oil and gas industry, particularly sourced from offshore reserves, is anticipated to grow at a rate of about 3.5 percent annually by 2030 (IEA, 2014).
In addition to petroleum, sand stands out as an important resource in Nigeria’s coastal areas. Sand mining occurs along major estuaries, lagoons, nearshore regions, and beaches. The mined sand is utilized for various purposes such as beach nourishment to combat erosion, land reclamation for development projects, and construction of buildings and roads. Local communities, particularly in the Niger Delta region, often engage in beach sand mining for construction purposes. Other non-renewable resources in Nigeria’s coastal zones include heavy minerals, salt, gravel, and clay.
Currently, Nigeria has yet to implement Maritime Spatial Planning (MSP) for the sustainable management of its ocean resources to enhance their potential for future utilization. MSP involves a public process of analyzing and allocating the spatial and temporal distribution of human activities in marine areas to achieve ecological, economic, and social objectives determined through a political process.
6. Marine Aquaculture
Nigeria continues to struggle with aquaculture production, failing to meet domestic demand despite a history dating back approximately 50 years. In marine-water aquaculture, the required water chemistry for salinity, based on dissolved salts, ranges from 0.30 to 50.00 parts per thousand (ppt). Fish farming in this zone faces significant challenges due to turbulent conditions and heavy rainfall prevalent in the coastal areas.
However, Nigeria boasts a vast potential for offshore aquaculture, supported by a substantial population of engineers across various disciplines, fisheries researchers (including biologists and ecologists), experienced aquaculturists, technologists, and technicians. Moreover, the country’s extensive coastline, spanning thousands of kilometers and containing billions of cubic meters of marine water, presents promising opportunities for offshore aquaculture. Although the continental shelf is relatively narrow, ranging from about 15 km in the west to 60-80 km in the east, the cultivation of marine fish species remains a viable prospect if existing potentials are effectively harnessed.
Nigeria’s coastal location, surrounded by the Atlantic Ocean, makes it an ideal site for offshore aquaculture. The country’s exclusive economic zone (EEZ) encompasses a significant portion of the Atlantic Ocean, offering diverse opportunities for farming various species using a range of technologies. This could ultimately help bridge the gap in fish production from aquaculture.
To facilitate effective offshore aquaculture practices, suitable areas for cultivation must be identified and meticulously mapped out, a responsibility that falls under the purview of the Federal Department of Fisheries (FDF). Additionally, comprehensive policies should be formulated to outline a strategic plan for the development, management, and conservation of Nigeria’s Exclusive Economic Zone. Lastly, stringent monitoring measures must be implemented to ensure environmental sustainability and safeguard the well-being of both the ecosystem and local communities.
7. Marine Biotechnology
Marine biotechnology includes the utilization of living marine organisms or their components to create or modify various products. It involves the application of scientific and engineering principles to process materials using marine biological agents, thereby offering a range of goods and services.
This field delves into the exploration of the oceans to develop innovative pharmaceutical drugs, chemical products, enzymes, and industrial processes. Additionally, marine biotechnology contributes significantly to advancements in biomaterials, healthcare diagnostics, aquaculture, seafood safety, bioremediation, and combating biofouling.
With the global population and human needs steadily increasing, there is a growing demand for resources. To address these needs, attention is turning towards the marine environment, which covers a vast portion of our planet. Bioprospecting, the exploration for biological resources, extends beyond the search for medical drugs. For instance, researchers have leveraged studies on marine bacteria to develop methods for detecting synthetic testosterone use in athletes, and have derived insights from ocean worms to create underwater adhesives. Additionally, scientists aim to discover chemicals that can facilitate the production of biofuels, such as ethanol, derived from plant or algae remains.
Exploring the potential of marine biotechnology in developing countries presents an opportunity to address challenges related to food scarcity, poverty, unemployment, and disease outbreaks. Countries like Nigeria, despite being underdeveloped in this field, possess marine resources with significant potential. For instance, marine sponge (Halichondria okadai) and fungi found in Nigeria’s marine environment have been utilized to produce Eribulin mesylate, an anticancer agent, and Cephalosporin, an antibiotic, respectively. By tapping into these resources, countries like Nigeria can contribute to addressing global challenges and advancing in the field of marine biotechnology.
