In Nigeria’s ongoing quest to diversify its economy, shrimp farming is emerging as the next big thing in aquaculture. Once overshadowed by catfish and tilapia production, shrimp farming is now catching the attention of agribusiness investors, coastal communities, and export-oriented entrepreneurs alike.
With Nigeria’s extensive coastal resources, rising global demand for shrimp, and high local consumption, this sector presents a lucrative opportunity. As of 2025, experts believe that shrimp aquaculture could rival crude oil and cassava in terms of foreign exchange earnings—if properly harnessed.
We examine why shrimp farming is gaining traction in Nigeria, the market potential, and how aspiring agribusiness players can tap into it.
1. Booming Global Demand for Shrimp
The global shrimp market is experiencing consistent growth, driven by increasing demand in the United States, Europe, China, and the Middle East. Shrimp is considered a premium seafood delicacy, valued for its taste, low-fat content, and nutritional benefits.
According to the FAO (Food and Agriculture Organization), global shrimp demand exceeds 9 million metric tonnes annually, with a projected CAGR (compound annual growth rate) of over 5% in the next five years. Nigeria’s ability to tap into even a fraction of this market could generate billions in export revenue.
Countries like India, Vietnam, and Ecuador currently dominate shrimp exports. But Nigeria’s proximity to Europe and North America, plus its rich marine ecosystem, offers a competitive advantage in reducing shipping time and cost.
2. Untapped Natural Resources
Nigeria boasts over 850 km of coastline and vast brackish water bodies in states like Lagos, Bayelsa, Rivers, Akwa Ibom, Ondo, and Delta. These environments are naturally ideal for shrimp cultivation, particularly species like Penaeus monodon (black tiger shrimp) and Penaeus vannamei (whiteleg shrimp).
Unlike catfish, which requires intensive management and feeding, shrimp can be farmed using semi-intensive or extensive systems in lagoons, ponds, and estuaries. The potential for eco-friendly, low-input farming systems makes shrimp aquaculture both sustainable and scalable.
3. High Export Value and Earnings
Shrimp is Nigeria’s highest-earning seafood export. According to the Nigerian Export Promotion Council (NEPC), frozen shrimp and prawns contribute over $40 million annually in foreign exchange, primarily to markets in the EU and US.
However, most of this revenue comes from wild-caught shrimp, which is limited by overfishing and seasonal availability. Aquaculture provides a way to meet year-round demand, expand export volume, and create jobs across the value chain—from hatcheries to processing plants.
With the right cold-chain infrastructure, shrimp exports could far exceed those of sesame seeds, ginger, and even cocoa in coming years.
4. High Profit Margins and ROI
For investors, shrimp farming offers some of the highest profit margins in Nigerian agriculture. A well-managed one-acre shrimp pond can yield up to 800 kg to 1.5 tonnes of shrimp per harvest, with farm-gate prices ranging from ₦3,000–₦4,500 per kg in local markets—or even higher for export-quality shrimp.
Break-even is achievable within a single season, and returns on investment (ROI) can exceed 50%—especially for farmers who own their land and minimize feed costs. In contrast to catfish farming, which faces market saturation and price crashes, shrimp remains a premium product with steady demand.
5. Rising Local Consumption of Seafood
Nigerians are increasingly embracing healthier diets, and shrimp is gaining popularity in urban households and restaurants. From Lagos to Abuja, shrimp is a staple in continental and Asian cuisine, including fried rice, seafood stews, and suya platters.
Supermarkets and online seafood platforms report surging demand for fresh, frozen, and ready-to-cook shrimp. However, most of the shrimp in Nigerian markets is either imported or sourced from unsustainable capture fisheries. Aquaculture provides a way to fill this gap with fresh, traceable, and hygienically produced shrimp.
6. Supportive Government Policies and Programs
Nigeria’s federal and state governments are beginning to recognize shrimp farming as a priority sector in the Blue Economy. Initiatives by the Federal Ministry of Agriculture and Rural Development (FMARD) and NEPC include:
- Subsidized aquaculture equipment
- Access to improved shrimp seeds
- Training and capacity-building for coastal farmers
- Export facilitation programs
- Inclusion in the Non-Oil Export Expansion Grant (NEEG)
States like Bayelsa, Rivers, and Delta are already allocating funds for coastal aquaculture projects. The inclusion of shrimp farming in Nigeria’s National Aquaculture Strategy reflects its long-term potential.
7. Job Creation and Youth Empowerment
Shrimp farming has strong potential for inclusive employment, especially for coastal youth, women, and ex-fishermen transitioning from capture to culture fisheries.
The shrimp value chain includes:
- Hatchery and broodstock operations
- Pond management and harvesting
- Feed production
- Processing, packaging, and cold storage
- Logistics and export coordination
A single medium-sized shrimp farm can employ up to 15–25 people, while cluster farms and cooperatives can support entire communities. With the right training and access to finance, young agripreneurs can thrive in this space.
8. Environmental Sustainability with Modern Technology
Modern shrimp farming, when done right, is eco-friendly and sustainable. Recirculating aquaculture systems (RAS), biofloc technology, and lined pond systems reduce waste, limit water usage, and prevent disease outbreaks.
Nigeria has the opportunity to learn from the mistakes of other countries, such as mangrove destruction in Southeast Asia, and adopt green shrimp farming practices from day one. Certification schemes like ASC (Aquaculture Stewardship Council) and GlobalGAP can make Nigerian shrimp more competitive on the global stage.
9. Integration with Agriculture and Feed Production
Shrimp feed accounts for 30%–40% of production cost, but this also opens up opportunities for agro-industrial integration. Maize, fishmeal, soybean meal, cassava, and other local crops can be used in formulating affordable, high-protein shrimp feed.
This interdependency between agriculture and aquaculture can drive rural development, improve food security, and create value-added industries for feed milling and by-product utilization.
10. Access to Diaspora and Impact Investment
With the rising popularity of agriculture among the Nigerian diaspora, shrimp farming has become a hot topic among impact investors. Platforms like ThriveAgric, AgUnity, and FarmCrowdy are already onboarding shrimp projects as part of their portfolio.
Diaspora Nigerians are willing to invest in shrimp farms due to:
- High export potential
- Scalable models with clear financial projections
- Impact on coastal livelihoods and food systems
- Premium market positioning
With proper contracts, cooperatives, and traceability, shrimp farming could attract millions in diaspora remittances annually.
Getting Started: What You Need
To start a shrimp farm in Nigeria, you’ll typically need:
- Suitable land near brackish water or marine environment
- Feasibility study and environmental impact assessment
- Quality shrimp seed (PL – Post Larvae) from certified hatcheries
- Pond preparation, aeration systems, and water quality control
- Feed and daily management plan
- Market access strategy—local and/or export
Partnering with experts or joining an aquaculture cooperative can help reduce risks and improve success rates.
Shrimp farming is poised to become Nigeria’s aquaculture goldmine, offering high profits, sustainable livelihoods, and export potential. As consumer tastes evolve and the global seafood market expands, shrimp is the perfect mix of demand, profitability, and impact.
With strategic investment, environmental responsibility, and government backing, Nigeria could soon join the ranks of top shrimp-producing countries—creating a ripple effect across its economy, from the Niger Delta to international markets.
image credit: veterinariadigital.com