‘OAGF Excessive Deductions Crippling Growth of Maritime Sector’ – Oyetola

BY GBOGBOWA GBOWA

The Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, CON, has raised the alarm over what he described as crippling deductions by the Office of the Accountant-General of the Federation (OAGF), accusing the agency of undermining liquidity and stifling development in Nigeria’s maritime sector.

Oyetola during the presentation of the budget proposal

Presenting a ₦10.5 billion budget proposal for the Ministry of Marine and Blue Economy before a joint session of the National Assembly committees on maritime affairs, Oyetola lamented that the allocation was grossly inadequate to drive reforms in a sector that handles over 90 percent of Nigeria’s international trade by volume.

According to him, while key agencies such as the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and Nigerian Shippers’ Council are self-funding and remit heavily to the Consolidated Revenue Fund, their operational capacity is being strangled by excessive deductions at source by the OAGF.

“These deductions have weakened liquidity, reduced flexibility, and left critical agencies unable to deliver on their mandates,” Oyetola warned, stressing that the fallout includes port congestion, higher logistics costs, delayed cargo movement, revenue losses, and inflationary pressures.

“What appears to be an accounting issue has now become a national economic concern,” he declared.

Addressing the errors believed to have inadvertentlybeen created by the Ministry of Budget and Economic Planning, Oyetola also highlighted misalignments in budget placement, citing the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) being wrongly listed under the Ministry of Transportation instead of Marine and Blue Economy. He argued that such errors undermine policy coherence in the maritime logistics chain.

On inland waterways, Oyetola appealed for increased funding to reduce accidents and fatalities, noting that water transport is globally cheaper and safer than road haulage. He emphasized that Nigeria’s overreliance on road transport for 80 percent of freight movement has worsened road deterioration and raised the cost of goods.

Speaking on fisheries, the Minister revealed that Nigeria’s fish demand of 3.6 million metric tonnes far outweighs domestic production of 1.4 million metric tonnes, forcing imports worth over $1 billion annually. He lamented post-harvest losses of up to 30 percent, despite fish being one of the most affordable protein sources for households.

Oyetola disclosed that in 2025, the ministry’s revised capital budget of ₦3.53 billion recorded an actual cash release of just ₦202.47 million, barely 1.7 percent, while overhead releases stood at 35 percent. He assured that engagements are ongoing with the Ministry of Budget and Economic Planning to close funding gaps in line with the government’s diversification drive.

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