Oyetola Presents ₦10.5bn 2026 Marine and Blue Economy Budget, Decries Inadequate Funding

Oyetola Presents ₦10.5bn 2026 Marine and Blue Economy Budget, Decries Inadequate Funding

The Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, CON, on Tuesday presented a ₦10,499,984,667.10 budget proposal for the Federal Ministry of Marine and Blue Economy for the 2026 fiscal year, lamenting that the allocation is grossly inadequate to effectively deliver the Ministry’s expansive mandate vital to Nigeria’s trade, transport efficiency, and food security.

Oyetola made this known while defending the Ministry’s budget before a joint sitting of the Senate Committee on Marine Transport and House of Representatives committees on Ports and Harbours; Maritime Safety, Education and Administration; Shipping Services; Inland Waterways; and Ocean and Fisheries.

He disclosed that the proposed budget comprises ₦8.24 billion for capital expenditure, ₦453.86 million for overhead costs, and ₦1.81 billion for personnel expenses, noting that the allocation would only sustain minimal operational continuity rather than drive meaningful reforms or sectoral growth.

The Minister explained that the Ministry oversees interconnected subsectors—ports, shipping, inland waterways, fisheries, and aquaculture—which collectively account for over 90 per cent of Nigeria’s international trade by volume, support national food and nutrition security, and enhance economic competitiveness.

He noted that key agencies under the Ministry, including the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and Nigerian Shippers’ Council (NSC), are largely self-funding and remit substantial revenues to the Consolidated Revenue Fund. However, he lamented that excessive deductions at source by the Office of the Accountant-General of the Federation had severely constrained their operations.

According to him, the deductions have weakened liquidity and reduced operational flexibility in critical areas such as maritime safety, port efficiency, and regulatory oversight, resulting in port congestion, increased logistics costs, delayed cargo movement, revenue losses, and inflationary pressures. He stressed that what initially appeared to be an accounting issue had evolved into a major national economic concern.

Oyetola also raised concerns over the misplacement of the 2026 budget of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) by the Budget Office under the Federal Ministry of Transportation, despite the agency being under the Ministry of Marine and Blue Economy. He said the misalignment undermines oversight clarity and policy coherence within the maritime logistics value chain.

On inland waterways, the Minister appealed for increased funding to enhance safety and curb frequent accidents and loss of lives. He noted that water transport is globally recognised as significantly cheaper than road transport, adding that Nigeria’s dependence on road haulage for over 80 per cent of freight movement has accelerated road deterioration and increased the cost of goods. He argued that safer and more efficient inland waterways would ease pressure on roads and reduce logistics costs.

Addressing fisheries and aquaculture, Oyetola said Nigeria’s annual fish demand of over 3.6 million metric tonnes far exceeds domestic production of about 1.4 million metric tonnes, leading to imports valued at over one billion dollars annually. He added that post-harvest losses of up to 30 per cent further compound supply shortages, despite fish being one of the most affordable sources of animal protein for Nigerian households. He assured that the Ministry is intensifying efforts to boost local fish production and reduce import dependence.

The Minister further disclosed that in 2025, the Ministry’s revised capital budget of ₦3.53 billion received an actual cash release of just ₦202.47 million—about 1.7 per cent—while overhead releases stood at 35 per cent.

He said engagements are ongoing with the Ministry of Budget and Economic Planning to address funding gaps, in line with the Federal Government’s economic diversification agenda through the marine and blue economy.

In his remarks, Chairman of the Senate Committee on Marine Transport, Senator Wasiu Eshilokun, assured that the National Assembly would thoroughly examine the proposals, stressing the strategic importance of the marine and blue economy to national development and economic resilience.