Driving opportunities for Lagos’ blue economy

Water as a natural resources is increasingly pulling economic benefits for communities surrounding it, KELVIN OSA OKUNBOR examines how Lagos is leveraging its vast water resources as foundation for economic activities

Globally, cities surrounded by water continue to generate conversations in environmental and economic quarters on what possible models could be adopted to convert  what appears as  challenges into huge for financial opportunities.

For this reason, experts continue to expand the conversations on the agenda that  will deliver the desired economic outcomes.

Lagos, in Nigeria is not left out of this task in turning the curve.

Wittingly, the Lagos State’s THEMES agenda identifies the Blue Economy as a strategic priority.

Leaders in the governance space have noted that a megacity with 22 percent  of its territory covered by water requires infrastructure designed for aquatic environments.

Despite this realization, something strategic has remained missing:  turning policy language into physical infrastructure that generates measurable economic returns.

Makoko offers this testing ground. The proposed $10 million Water Cities upgrade matters not just for the estimated 100,000 residents but also because its successful execution will create replicable models for Lagos’s coastline and lagoon systems, which currently represent underutilized economic assets.

Experts say managers of the governance space should think out of the box and begin to see the

Blue Economy frameworks, which  view water as a foundation for economic activity rather than an obstacle to development.

For Lagos, where population density makes waterfront development inevitable, this creates a fundamental choice. The first approach, dominant for decades, relies on displacement and land reclamation.

The second builds floating infrastructure that preserves ecosystems and communities while creating new economic value. Traditional development treats informal waterfront settlements as economic drains requiring clearance. Blue Economy logic inverts this: communities already living on water possess knowledge about aquatic construction, tidal patterns, and sustainable fishing that engineered solutions must build upon.

The primary economic opportunity is straightforward. Nigeria imports significant fish protein despite its extensive coastline and lagoon systems, where communities like Makoko have fished for centuries. Integrated aquaculture, combining traditional catch with cage farming, could transform the lagoon from a subsistence fishing ground into a commercial protein production hub. The market already exists. Lagos consumes more fish than local waters currently supply, creating immediate demand for increased sustainable production.

But the economic value extends beyond fish. The construction expertise developed to build functional infrastructure on water in tropical tidal environments can be exported as intellectual property by Lagos.

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By 2050, urban flooding will affect cities housing 800 million people globally, according to a UN-Habitat report; therefore, infrastructure that remains functional during floods has significant market value. Coastal municipalities from Manila to Miami to Dhaka will need the exact solutions Makoko tests today.

If Lagos develops and documents these techniques, the city can export climate adaptation expertise to development banks and governments worldwide, generate consulting revenue, and establish regional leadership.

Tourism adds another dimension. Lagos struggles to differentiate attractions beyond music concerts, hospitality venues, beach resorts, and business conferences.

Properly developed, Makoko’s floating architecture and preserved Egun fishing heritage could create a cultural destination that generates visitor revenue while maintaining community character. This works only if the infrastructure upgrade preserves what makes the settlement distinctive rather than replacing it with generic waterfront development.

These opportunities align directly with the THEMES development agenda. Water-based mobility infrastructure reduces road congestion. Floating health clinics demonstrate delivery mechanisms for populations that traditional infrastructure cannot reach cost-effectively. Schools designed for tidal environments establish architectural standards for waterfront education statewide.

The Blue Economy framework offers a practical pathway to implement multiple policy priorities simultaneously through integrated aquatic infrastructure.

The elements for success already exist. Lagos has a policy vision identifying the Blue Economy as a priority. International partnerships through UNDP and UN-Habitat provide technical expertise and partial funding.

A community with two centuries of experience living on water offers practical knowledge that engineering cannot replicate.

What determines the outcome is execution. Informal settlements can be upgraded without displacement, making future interventions less contentious than clearance and resettlement. Investment in aquatic infrastructure generates returns through increased productivity and new economic activity, rather than constituting pure social expenditure.

Success demonstrates that Lagos has the governance capacity to coordinate state agencies, international partners, and community organizations effectively.

The $10 million Makoko investment tests whether the THEMES agenda’s most forward-looking component produces measurable returns or remains aspirational policy.

 For a state surrounded by water, facing population growth and climate realities, building aquatic infrastructure is essential.