The House of Representatives has approved the Nigeria Maritime Administration and Safety Agency’s (NIMASA) 2025 revenue target of ₦774.77 billion, despite expressing reservations about the feasibility of meeting such a bold target and raising concerns over significant increases in recurrent expenditures and pending capital projects.
The approval came during a budget defence session chaired by Hon. Khadijat Abba-Ibrahim, where members of the House Committee on Maritime Safety, Education, and Administration scrutinized NIMASA’s financial performance and operational forecasts.
Representing the Director-General, Dr. Dayo Mobereola, at the hearing was the Executive Director of Finance and Administration, Hon. Chidi Offodile, who presented a detailed breakdown of NIMASA’s proposed revenue plan and addressed the agency’s performance in the outgoing fiscal year.
The lawmakers questioned the credibility of the 2025 revenue target, pointing to the ₦97 billion shortfall recorded in 2024. NIMASA had projected ₦467.4 billion in revenue for 2024 but managed to collect ₦370 billion—about 79% performance.
“We are concerned that the agency is setting a very high revenue target without addressing the root causes of the previous shortfalls,” Hon. Abba-Ibrahim stated, adding that the House would monitor quarterly implementation closely.
Another area of concern was the surge in personnel costs, which ballooned from ₦42 billion in 2024 to ₦73 billion in 2025. Lawmakers queried whether this rise stemmed from large-scale recruitment or inflated staff benefits.
In response, Offodile explained that the budget was influenced by economic forecasts, oil production uptick, and operational improvements. “These projections are anchored on anticipated increases in oil-related maritime activities, enhanced digital revenue collection systems, and strategic collaborations,” he said.
Committee members also drew attention to the federal government’s directive requiring MDAs to remit 50% of their Internally Generated Revenue (IGR) to the Consolidated Revenue Fund. This represents a significant policy shift from the previous framework that allowed NIMASA to retain all of its IGR.
Offodile disclosed that after accounting for statutory deductions, including maritime fund contributions and the 50% remittance, the agency would retain ₦264.96 billion for operational use.
Key revenue drivers identified by the agency include freight levies, offshore waste management fees, sea protection charges, and ship registration, in addition to new inflows from automation and a modular floating dock set for deployment.
The committee also questioned how NIMASA intends to finance ₦89 billion worth of capital projects when 50% of its revenues are deducted at the source. Lawmakers demanded clarity on the agency’s capital implementation strategy, particularly concerning ongoing projects at the Maritime Academy of Nigeria, Oron, Akwa Ibom State, for which ₦200 billion was earmarked.
The committee urged NIMASA to immediately release the approved funds to the Academy to fast-track development in line with maritime education goals.
Despite reservations, the House adopted the proposed budget for plenary presentation, with a cautionary note to NIMASA on ensuring transparency, fiscal discipline, and real-time reporting.
NIMASA is expected to anchor its performance on increased maritime security, stakeholder collaboration, digitization, and international partnerships, such as those with the United States Coast Guard and other foreign maritime bodies.
The agency’s 2025 budget aligns with Nigeria’s broader economic agenda, including President Tinubu’s blue economy initiative and the expansion of the nation’s maritime GDP contribution.
As Nigeria ramps up revenue diversification and infrastructure development in the maritime space, NIMASA’s ambitious ₦774.77 billion target represents both an opportunity and a litmus test for fiscal responsibility and operational transparency. Lawmakers will be watching closely to ensure that the agency not only meets projections but also delivers on its promises of maritime safety, education, and growth.