says 2026 N10bn budget proposal insufficient
The Federal Ministry of Marine and Blue Economy received only N202 million of its N3.53 billion capital budget allocation in 2025, representing just 1.7 percent of approved funds, Adegboyega Oyetola, the minister, said.
Oyetola revealed this on Tuesday while defending the ministry’s N10.5 billion budget proposal for 2026 before a joint sitting of the Senate Committee on Marine Transport and several House committees overseeing maritime affairs.
The minister described the 2026 allocation as grossly insufficient to execute the ministry’s mandate, warning it would “only sustain minimal operational continuity rather than deliver meaningful reforms or sectoral growth.”
Overhead releases in 2025 also stood at just 35 percent, constraining day-to-day operations.
Read also: Blue Economy ministry seeks lifeline in blue bond amid budget squeeze
Fearing a repeat in 2026, Oyetola said the ministry was engaging with the Ministry of Budget and Economic Planning to address the funding gaps.
The proposed 2026 budget comprises N8.24 billion for capital expenditure, N453.86 million for overheads and N1.81 billion for personnel costs.
Self-funding agencies hamstrung
The minister explained that the ministry oversees ports, shipping, inland waterways, fisheries and aquaculture, which collectively handle over 90 percent of Nigeria’s international trade by volume.
He noted that while key agencies including the Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency and Nigerian Shippers’ Council are self-funding and remit revenue to government, excessive deductions by the Office of the Accountant-General have constrained their operations.
These deductions have weakened liquidity and operational flexibility, leading to port congestion, higher logistics costs, delayed cargo movement, revenue losses and inflationary pressures, Oyetola said.
“What appears to be an accounting issue has become a national economic concern,” he stated.
Case for more funds
The minister argued that increased funding would help curb accidents and loss of lives on inland waterways, noting that water transport is cheaper than road transport.
He said Nigeria’s heavy reliance on road haulage for over 80 percent of freight movement has worsened road deterioration and increased the cost of goods.
On fisheries, Oyetola said Nigeria imports over $1 billion worth of fish annually as domestic production falls short of demand by more than two million metric tonnes. Poor storage and processing infrastructure also wipes out up to 30 percent of local supply.
Read more: Oyetola seeks to close 2MT deficit with fisheries bill, blue data bank
The minister also flagged the placement of the Council for the Regulation of Freight Forwarding in Nigeria under the Federal Ministry of Transportation, despite being an agency under his ministry.
He said the misalignment hinders clarity in oversight and policy enforcement in the industry.
Wasiu Eshilokun, the chairman of the Senate committee on Marine Transport, assured that the National Assembly would carefully examine the proposals.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
