An Investment Optimization Model for Lifecycle Management of Nigerian Naval Assets

Abstract

This paper proposes an Investment Optimization Model tailored for the lifecycle management of naval assets operated by the Nigerian Navy. Faced with increasing maritime security demands and constrained defense budgets, Nigeria's naval planners require a framework that enhances return on investment across acquisition, mid-life upgrade, and decommissioning phases. Drawing on theories of total cost of ownership, public sector asset management, and lifecycle costing, the study introduces a model that integrates performance indicators, risk variables, and analytical tools to support data-driven investment decisions. The model responds to systemic challenges such as budget volatility, deferred maintenance, and data inadequacies that undermine asset readiness and fiscal sustainability. By aligning asset performance with mission relevance and financial viability, the framework promotes strategic resource allocation, reduces wasteful spending, and supports continuous operational availability. Its core components include cost-benefit analysis modules, risk-weighted planning assumptions, and integration pathways with existing budget cycles and planning structures. In presenting this model, the paper emphasizes the strategic importance of embedding lifecycle investment thinking within naval financial governance. It offers practical recommendations for institutionalizing the framework, including policy reforms, technical training, and iterative model evaluation. The study concludes that the adoption of this model can transform naval asset management in Nigeria, ensuring optimal use of limited resources while strengthening maritime security outcomes.