The Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, has raised concerns that excessive deductions at source are constraining the operations of key maritime agencies, including the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), with adverse consequences for port efficiency, maritime safety and Nigeria’s overall economy.
Oyetola made the disclosure on Tuesday while defending the 2026 budget proposal of the Federal Ministry of Marine and Blue Economy, valued at ₦10,499,984,667.10, before a joint sitting of the Senate Committee on Marine Transport and House of Representatives committees overseeing ports, maritime safety, shipping services, inland waterways, and fisheries.
He explained that although agencies such as the NPA and NIMASA are largely self-funding and remit substantial revenues to the Consolidated Revenue Fund, their capacity to deliver on statutory mandates has been severely weakened by heavy deductions by the Office of the Accountant-General of the Federation.
According to the minister, the reduced liquidity has limited the operational flexibility of agencies responsible for port operations, maritime safety administration and regulatory oversight, leading to port congestion, delayed cargo evacuation, rising logistics costs and revenue losses, with attendant inflationary pressures on the economy.
“What appears to be an accounting issue has become a national economic concern,” Oyetola said, noting that the effectiveness of agencies handling over 90 per cent of Nigeria’s international trade by volume was being undermined.
The minister disclosed that the ministry’s proposed 2026 budget comprises ₦8.24 billion for capital expenditure, ₦453.86 million for overheads and ₦1.81 billion for personnel costs, stressing that the allocation was grossly inadequate to support reforms or meaningful growth across the maritime sector.
He also drew attention to structural and administrative issues affecting sector governance, including the misplacement of the 2026 budget of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) under the Federal Ministry of Transportation rather than the Ministry of Marine and Blue Economy, describing the error as one that weakens policy coherence within the maritime logistics value chain.
On inland waterways, Oyetola said limited funding has hampered efforts to improve safety and reduce accidents, despite water transport being a cheaper alternative to road haulage. He noted that Nigeria’s dependence on road transport for over 80 per cent of freight movement has increased the burden on roads and escalated the cost of goods, arguing that well-funded inland waterways would complement port operations and reduce logistics bottlenecks.
The minister further highlighted challenges in fisheries and aquaculture, revealing that Nigeria’s annual fish demand of over 3.6 million metric tonnes far outstrips local production of about 1.4 million metric tonnes, forcing imports valued at over one billion dollars annually. He added that post-harvest losses of up to 30 per cent continue to undermine supply, despite the sector’s importance to food security and livelihoods.
Oyetola disclosed that in 2025, the ministry’s revised capital budget of ₦3.53 billion received an actual cash release of only ₦202.47 million, representing about 1.7 per cent, while overhead releases stood at 35 per cent.
He said discussions were ongoing with the Ministry of Budget and Economic Planning to resolve funding gaps in line with the Federal Government’s economic diversification agenda anchored on the marine and blue economy.
In his response, Chairman of the Senate Committee on Marine Transport, Senator Wasiu Eshilokun, assured that the National Assembly would scrutinise the proposals, noting that agencies such as the NPA and NIMASA play strategic roles in national development, trade facilitation and economic resilience.
