Fish constitutes roughly 40% of Nigeria’s protein consumption, with the annual demand reaching 3.6 million tonnes. Of this, about 2.5 million tonnes of frozen fish are imported each year. For Nigeria’s rapidly growing population, the aquaculture sector offers new opportunities for sustainable livelihoods and nutritious diets.
Setting up farmed fish enclosures to provide a sustainable and nutritious food source. Photo by Olaniyi Ajibola.
Local aquatic food systems, which comprise fisheries, aquaculture and related supply chains, are increasingly recognized for their ability to provide sustainable, healthy diets and decent work. Although Nigeria’s coastal capture fisheries are strained, aquaculture can be leveraged to fill in the gaps and provide jobs in the fisheries sector.
Key Players and Their Innovations
Several entrepreneurs and companies are making significant strides in Nigeria's fish production and processing sector.
Graemoh Foods
Smoked catfish is a local delicacy enjoyed throughout many countries in West Africa, especially in Nigeria. It is usually prepared by drying the fish over a wood fire on the side of the road. However, the lack of quality preparation techniques often leads to a finished product that is well below standard and likely to contain impurities like sand.
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To address this issue, David Galadima, an entrepreneur with a background in engineering, established a food-processing company called Graemoh Foods. Initially, Galadima smoked the catfish at a local drying centre on racks above the ground, but this still resulted in a substandard product. To improve the quality of his produce, Galadima raised funds from a combination of family, friends, and grants, which he used to purchase a fish-drying machine.
“We invested a lot in equipment, now we do everything in-house. Though the processing plant is based in Kaduna State, Graemoh Foods navigates local logistical challenges to transport its products to cities as far as Lagos and Port Harcourt. Despite frequent breakdowns of their trucks on poor roads, which risks the catfish spoiling, the company’s robust packaging enables the product to remain edible for approximately three weeks.
Platinum Fisheries
Dupe Killa-Kafidipe established Platinum Fisheries, a Lagos-based aquaculture company, in 2016. Focusing on the domestic market, the firm produces catfish, tilapia, mackerel, and snails. Initially, it sourced fertilised eggs and young hatchlings from third-party suppliers, often making grueling six-hour journeys to Kwara State.
The company shifted focus towards selling in larger quantities to business customers such as public seafood markets and factories producing packaged seafood products. It also established a hatchery to ensure a consistent supply of seedlings and decrease dependence on external providers. As demand soared, Platinum Fisheries began supplying seedlings to other fish farms, with orders occasionally reaching up to 40,000 units.
Killa-Kafidipe believes Platinum Fisheries has only just begun to tap into the significant local demand for fish products. “There are 200 million Nigerians that need to be fed [and] we currently import 85% of our seafood needs,” she says.
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Osky Catfish Hatchery Grow-out & Processing Facility
Situated near Akure in southern Nigeria, Osky Catfish Hatchery Grow-out & Processing Facility raises and dries catfish for both domestic consumption and international export. The business was set up by Femi Eniola, who returned to Nigeria in 2018 after training in the Philippines, where he discovered they were utilising catfish bred in Nigeria.
Osky manages the entire value chain, from hatching to growth and processing, using an oven to dry the catfish. The business processes about four tonnes of fresh catfish on a weekly basis.
Shaldag
Danladi Verheijen, managing partner of private equity firm Verod Capital, highlights the import substitution of fish as a substantial opportunity, pointing to villages in Norway where the entire economy is based on growing a particular type of fish (stockfish) sold to Nigeria. Trawlers from Southeast Asia also fish in the waters outside Lagos and Accra, process [the catch] in their countries and then sell it back into Africa.
To capitalise on this, Verod has invested in fish-farming business Shaldag. “It grows fish at over 40 times the density of other local farms by using modern technology in their operations. The company produces processed, smoked catfish under the Shaldag brand. Nigeria imports over $600 million of fish a year, so this investment is an import substitution play,” Verheijin explains.
Market Trends and Consumer Preferences
The Fish & Seafood Market in Nigeria has been experiencing moderate growth, driven by factors such as increasing demand for fresh and processed fish & seafood, rising health consciousness among consumers, and the convenience of online purchasing. However, challenges such as limited infrastructure, high production costs, and lack of government support are impacting the market's growth rate.
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The Fish & Seafood Market in Nigeria has experienced a rise in demand for sustainably sourced and locally caught seafood products. This trend is driven by the growing awareness of the negative environmental impact of large-scale fishing practices, as well as the desire for fresher, healthier options. Additionally, there has been an increase in demand for value-added seafood products, such as smoked and marinated fish, as consumers look for convenient and ready-to-eat options.
These shifts in consumer preferences are influenced by the cultural tradition of consuming fresh seafood and the growing health-consciousness among the population. This has also led to an increase in the use of e-commerce platforms for purchasing seafood, as consumers seek out more convenient and efficient ways to access their favorite seafood products.
In Nigeria, the Fish & Seafood market is experiencing a surge in demand for aquaculture products, driven by the growing population and increasing health consciousness among consumers. This trend is expected to continue as the government promotes sustainable fishing practices and invests in modernizing the industry. Additionally, there is a growing trend of online seafood marketplaces, allowing consumers to purchase fresh seafood directly from fishermen.
These developments are significant for industry stakeholders as they present opportunities for growth and innovation in the market. However, it also poses challenges for traditional seafood retailers who may struggle to compete with the convenience and variety offered by online platforms. As the market continues to evolve, stakeholders will need to adapt and embrace technology to stay competitive and meet consumer demands.
In Nigeria, the Fish & Seafood Market is heavily influenced by the country's vast coastline and rich fishing resources. This has led to a strong emphasis on seafood in the local cuisine and a robust fishing industry. Additionally, cultural factors such as the high demand for fresh, locally sourced seafood and the tradition of communal meals have contributed to the growth of this market. Regulatory circumstances, such as strict government regulations on fishing practices, have also played a role in shaping the dynamics of the market. These unique factors have created a thriving seafood market in Nigeria, attracting both local and international consumers.
The Fish & Seafood Market in Nigeria is significantly impacted by macroeconomic factors such as global trade policies, availability of resources, and consumer preferences. The country's economic health and fiscal policies also play a crucial role in the market's performance. Nigeria's strategic location along the Atlantic Ocean makes it a major exporter of fish and seafood products, contributing significantly to its GDP. However, fluctuations in global demand and supply, as well as changes in trade agreements, can have a significant impact on the market.
Additionally, government initiatives to promote sustainable fishing practices and investments in infrastructure and technology are driving market growth. The growing population and increasing middle-class income in Nigeria are also creating a higher demand for high-quality seafood products, further propelling the market's expansion.
Challenges and Opportunities
Domestic food production remains relatively low across Africa, and food imports are a significant but necessary expenditure for many sub-Saharan nations. The problem is particularly prevalent when it comes to fish and aquatic foods. Though Nigeria is the second largest aquaculture producer in Africa, the country’s aquaculture industry is constrained by a lack of resources and technical knowledge. Unable to sustain the population’s demand for aquatic foods, Nigeria has become Africa’s largest importer of fish.
In the scoping study, WorldFish Foresight Model projections predicted that the fish supply-demand gap in Nigeria will further widen over the coming decades without intervention. The study determined that neither the quantity nor genetic quality of fish seed, or fertilized fish eggs, available in the country were sufficient to support aquaculture growth.
Recognizing her country’s growing appetite for aquatic foods, along with the economic potential of the industry, Aderinsola Olubunmi Agbato, the executive of B-Spice Farms in Oyo State, opened a fish-based product business five years ago. She processes locally farmed catfish to develop value-added retail products like dried fish powder, fish oil, fish spice and packaged fish snacks.
Fish provide vital micronutrients during the first 1000 days of life, enabling optimum cognitive and physical development in young children like Agbata’s. “There is a lower fish consumption rate among resource-limited and marginalized communities in Nigeria due to the notable supply-demand gap. To equitably transform food systems and improve food and nutrition security across the African continent, Nigeria’s emerging small-scale aquaculture sector offers a path forward.
With support from the Bill and Melinda Gates Foundation (BMGF), WorldFish conducted a comprehensive study to fill critical knowledge gaps and inform future investment decisions that facilitate the inclusive growth of Nigeria’s aquaculture sector.
Improving diversity and prosperity in Nigeria’s fisheries and aquaculture | AABS
About half of post-harvest aquaculture activities, including fish processing and retail, are performed by women and 35 percent by youths. “Over the next five years, we will focus on developing catfish and tilapia supply chains that empower women, create jobs and provide nutritious food to regions far from urban markets,” said Siriwardena.
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