FG ALLOCATES ₦10.49BN TO MARINE, BLUE ECONOMY MINISTRY FOR 2026; OYETOLA FLAGS FUNDING GAPS

The Federal Ministry of Marine and Blue Economy has proposed a ₦10.49 billion budget for the 2026 fiscal year, but the Minister, Dr. Adegboyega Oyetola, CON, has warned that the allocation is insufficient to meet the ministry’s critical mandate.

Oyetola presented the budget on Tuesday before a joint session of the Senate Committee on Marine Transport and the House of Representatives committees on Ports and Harbours, Maritime Safety, Education and Administration, Shipping Services, Inland Waterways, and Ocean and Fisheries.

The proposed ₦10,499,984,667.10 budget comprises ₦8.24 billion for capital expenditure, ₦453.86 million for overhead costs, and ₦1.81 billion for personnel. The minister noted that while the funding could sustain basic operations, it falls short of supporting sectoral reforms or driving significant growth.

He explained that the ministry oversees multiple interconnected subsectors — including ports, shipping, inland waterways, fisheries, and aquaculture — which collectively account for over 90 per cent of Nigeria’s international trade by volume, contribute to food and nutrition security, and underpin national economic competitiveness.

Oyetola highlighted operational challenges faced by agencies under the ministry, such as the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and Nigerian Shippers’ Council. While largely self-funding and contributing substantial remittances to the Consolidated Revenue Fund, these agencies are constrained by “excessive deductions at source” by the Office of the Accountant-General of the Federation, he said. The minister warned that these deductions have led to port congestion, rising logistics costs, delayed cargo movement, revenue losses, and inflationary pressures, describing the issue as a national economic concern.

He also flagged an apparent misplacement in the 2026 budget, where the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) was listed under the Federal Ministry of Transportation instead of the Ministry of Marine and Blue Economy, complicating oversight and policy coordination.

On inland waterways, Oyetola called for increased funding to improve safety and efficiency, noting that water transport is globally cheaper than road haulage. He said Nigeria’s reliance on road transport for over 80 per cent of freight has accelerated road deterioration and raised logistics costs.

Turning to fisheries and aquaculture, the minister said Nigeria’s annual fish demand exceeds 3.6 million metric tonnes, while domestic production is around 1.4 million metric tonnes, resulting in over $1 billion in annual imports. He added that post-harvest losses of up to 30 per cent worsen supply shortages, stressing that boosting local production could reduce import dependency and provide affordable protein to households.

Oyetola further disclosed that in 2025, the ministry’s revised capital budget of ₦3.53 billion received only ₦202.47 million, about 1.7 per cent, while overhead releases stood at 35 per cent. He said ongoing engagements with the Ministry of Budget and Economic Planning aim to address these funding gaps in line with the Federal Government’s agenda to diversify the economy through the marine and blue economy.

Senator Wasiu Eshilokun, Chairman of the Senate Committee on Marine Transport, assured that the National Assembly would carefully review the proposals, emphasizing the strategic importance of the marine and blue economy to Nigeria’s development and economic resilience.