LEGAL REGIME FOR TAXING THE BLUE ECONOMY IN NIGERIA: RECONCILING ENVIRONMENTAL SUSTAINABILITY WITH FISCAL OBJECTIVES

Abstract

The strategic integration of ocean-based economic sectors into national development planning, commonly framed within the paradigm of the blue economy, has gained prominence as a viable pathway for advancing sustainable growth, enhancing revenue generation, and promoting marine conservation in coastal states like Nigeria. However, Nigeria faces the challenge of designing a taxation regime that effectively mobilizes revenue from its marine sectors without compromising ecological sustainability. This study critically examined the intersection of taxation and environmental governance within Nigeria’s blue economy, assessing whether existing legal and institutional frameworks adequately support the dual pursuit of fiscal and environmental objectives. Adopting a doctrinal methodology with analytical and comparative perspectives, the research relied on key legal instruments such as the 1999 Constitution (as amended), the Federal Inland Revenue Service (Establishment) Act, the Petroleum Industry Act 2021, the Nigerian Maritime Administration and Safety Agency Act, 2007 and relevant international frameworks, particularly SDG 14. Findings revealed a lack of sector-specific tax policies and weak integration of environmental concerns. The study recommends, amongst others, institutionalizing environmental fiscal reforms in Nigeria’s Tax Regime, enacting a comprehensive Blue Economy Tax Framework, empowering subnational governments to leverage marine taxation autonomously and enhancing data access and transparency in marine industries.