Today we turn our attention to the fisheries sector. Aquaculture remains an integral part of Nigeria’s agriculture sector, with annual fish demand estimated at 3.3 million metric tons (mmt). Industry sources suggest that Nigeria’s per capita fish consumption is 11kg, significantly lower than the global average of 21kg. The segment requires increased investment to encourage large-scale commercial fishing, which should bridge the current 2.1mmt supply gap. According to the fisheries resources department in the Nigeria Institute for Oceanography and Marine Research, at least 70% of local fish production is by small-scale fishermen on a subsistence level.
- Based on the national accounts, fisheries grew by 4.2% in Q1 and accounted for 3.1% of total agricultural GDP. The segment has managed to maintain growth for two consecutive quarters.
- To boost local production and regulate fish imports, the FGN provides quotas for fish importation to fish farmers engaged in backward integration, rather than granting waivers. Fish importers without quotas are subject to a fine of US$250,000.
- According to statistics from the World Trade Organisation, Netherlands exported US$174m worth of fish to Nigeria in 2017. Meanwhile, Nigeria imported fish worth US$71m, US$56m and US$43m from Iceland, Russia and Norway respectively in the same year.
Sources: National Bureau of Statistics (NBS); FBNQuest Capital Research
- The FGN has announced its intention to partially commercialise the River Basin Development Authorities (RBDA) by next year. Transaction advisors for this process have been approved. This move could boost the segment through fish rearing in dams.