The Nile perch fishery sector in Tanzania is important for enhancing the livelihoods and food security for the majority of people living near the Tanzanian portion of Lake Victoria. Despite continued government efforts and other institutions, including the Food and Agriculture Organization (FAO), Lake Victoria Fisheries Organization (LVFO), European Union and World Bank regarding the management of Lake Victoria, the Nile perch fishers have remained relative inefficient in regard to improving their fish catches. The Nile perch small‐scale fisheries sector in particular faces a challenge regarding how to improve production performance while, at the same time, ensuring a sustainable level of fisheries resources. This reality necessitates the measurement and analysis of artisan fishers’ technical efficiency. Accordingly, the present study analyses Nile perch fishers technical efficiency, using a stochastic production frontier (SPF) model based on the sample of 268 Nile perch fishers in the Tanzanian portion of Lake Victoria. The translog stochastic frontier model results indicate the technical efficiency of Nile perch fishers range between 61% and 80%, with an overall average technical efficiency of 75%. This finding implies that, based on existing fishery resources, the current quantity of Nile perch catch can be improved efficiently by 25%, a reality highlighting mismanagement of the lake's fishery resources. The quantity of bait and petrol and the number of hooks used per trip are the most important fishing inputs, indicating a positive Nile perch fishing output–input elasticity. To address the Nile perch fisher inefficiency, it is important to provide subsidized inputs such as outboard engines and mesh gillnets. Provision of access to affordable credits will enable fishers to purchase less destructive fishing inputs and improve the current structure of fishery organizations.