Nigeria loses N70trn annually to legal gaps in maritime sector — Agbakoba
....says over 25,000 foreign vessels operate illegally in Nigeria’s coastal waters
Stories by Seun Ibiyemi
Senior Partner at Olisa Agbakoba Legal (OAL) and pioneer President of the Nigerian Chamber of Shipping, Dr. Olisa Agbakoba (SAN), has raised alarm over Nigeria’s massive economic losses in the maritime and blue economy sector, estimating an annual revenue drain of N70 trillion due to weak legal and regulatory frameworks.
In a policy statement titled “Legal, Regulatory, and Institutional Reform to Drive Revenue in the Marine and Blue Economy,” made available to newsmen, Dr. Agbakoba revealed that more than 25,000 foreign vessels operate illegally in Nigeria’s coastal waters.
This, he said, not only deprives the country of enormous revenue but also constitutes a major national security threat.
According to him, improved regulation, enhanced port infrastructure, and robust private sector involvement could unlock the sector’s full potential, making it Nigeria’s biggest revenue source outside oil and gas.
The Nigerian Institution of Marine Engineers and Naval Architects (NIMENA) estimates that better governance could boost the industry’s contribution to GDP by about $44 billion (N70 trillion) annually.
Dr. Agbakoba described the recent adoption of the National Policy on Marine and Blue Economy (2025–2034) by the Federal Executive Council as a welcome development, noting that the policy provides a comprehensive roadmap for reform. However, he stressed that effective and decisive implementation is now crucial.
He highlighted several revenue-generating interventions capable of delivering measurable results within one year. Key among them is port infrastructure development, which he said could generate up to N14 trillion annually.
Despite Nigeria being the destination for 80 percent of containers bound for West and Central Africa, less than 20 percent actually arrive due to decayed infrastructure in Lagos, Port Harcourt, and other ports.
Citing a report by Dutch consultancy firm Dynanmar, Agbakoba disclosed that Nigeria loses about N20 billion daily to inefficiencies at the ports, with neighbouring ports in Cotonou, Tema, and Lomé benefiting from Nigeria’s infrastructure deficits.
He listed the Apapa Port, Onitsha River Port, and new port projects in Azumiri and Oraji as critical assets needing urgent rehabilitation or development.
On inland waterways, which he believes could generate between N10 trillion and N12 trillion annually, the maritime expert called for the reconstruction of Nigeria’s once-thriving network of 42 waterways.
He proposed a multimodal transportation superhighway linking roads, rail, and inland waterways, describing the River Niger and River Benue as potential “economic corridors comparable to the Nile.”
He noted that dredging key waterways to a minimum draught of ten feet would significantly reduce travel time and facilitate efficient movement of agricultural produce.
“Transportation from Baro to Onitsha could take 90 minutes instead of nine hours, while goods like yam could be ferried from Makurdi to Onitsha in three hours,” he said.
On cabotage enforcement, which he projected could earn Nigeria N8 trillion annually, Agbakoba lamented the massive infiltration of foreign vessels in local waters, calling for tighter enforcement mechanisms.
His policy paper recommends the enactment of nine new maritime-focused laws, including the Ports and Inland Waterways Development Act, Marine Spatial Planning Act, Sustainable Fisheries and Aquaculture Act, Maritime Security and Piracy Suppression Act, and the Blue Economy Act.
It also proposes amendments to seven existing laws such as the NIMASA Act, NPA Act, NIWA Act, Cabotage Act, Merchant Shipping Act, Petroleum Industry Act, and EEZ Act.
Dr. Agbakoba further called for institutional reforms including the establishment of a National Blue Economy Commission, a Marine Pollution Task Force, specialized maritime courts, and strengthened inter-agency cooperation.
“With decisive action, the maritime sector can transform into a trillion-naira powerhouse. Without reforms, the losses will only deepen,” he concluded.