Nigeria Allocates 5% of GDP to Industrial Financing in Bold Move to Boost Manufacturing
The Federal Government of Nigeria has unveiled plans to allocate up to 5% of the nation’s Gross Domestic Product (GDP) to industrial financing, marking one of the most ambitious moves to boost local manufacturing in recent years. Announced under the Nigeria Industrial Policy (NIP) 2025, this initiative leverages public–private partnerships to stimulate large-scale production, strengthen export competitiveness, and create jobs nationwide.
The Nigeria Industrial Policy 2025 aims to reposition the economy toward mass production and industrial self-sufficiency. The framework consolidates fiscal, monetary, export, and industrial measures into a single national strategy, introducing structured implementation timelines, clear institutional responsibilities, and measurable performance targets to accelerate industrial growth.
A key pillar of the policy is funding. The government plans to recapitalise the Bank of Industry to N3 trillion and expand sector-specific intervention funds to the same level. Innovative schemes, including interest-drawback programmes and equity-based financing for Micro, Small, and Medium Enterprises (MSMEs), are also part of the plan, signaling a strong commitment to matching industrial ambition with financial resources.
The policy reflects President Bola Tinubu’s “Renewed Hope” vision by emphasizing local content development, import substitution, and industrial self-sufficiency. Provisions include enforcing a ‘Nigeria First’ approach, prioritizing locally manufactured goods, reducing reliance on imported raw materials, and promoting value addition across key sectors of the economy.
Ultimately, the NIP 2025 is designed to stimulate industrial expansion, create sustainable employment, and increase manufacturing’s contribution to Nigeria’s GDP from current levels to between 20% and 25% by 2030. With a clear financing plan and structured implementation, the policy positions Nigeria as a rising industrial hub in Africa, promising long-term growth and job opportunities for its citizens.
source: nairametrics