Nigeria to Channel Up to 5% of GDP Into Industrial Financing Under New National Policy
Nigeria’s Federal Government has unveiled plans to dedicate up to five percent of the country’s Gross Domestic Product (GDP) to industrial financing, signalling a major push to strengthen domestic production, boost exports, and generate employment through large-scale industrial growth.
The initiative forms a central component of the Nigeria Industrial Policy (NIP) 2025, introduced by the Federal Ministry of Industry, Trade and Investment. The framework aims to reposition the economy toward mass production, improved export performance, and long-term job creation through strategic investments and public–private partnerships.
Financing at the Core of Industrial Growth Strategy
The policy highlights funding as a critical driver of industrial development, emphasising that sustained financial support is essential for any industrial reform to succeed. To strengthen the country’s development finance ecosystem, the government plans to recapitalise the Bank of Industry, expand sector-focused intervention funds, and introduce new financing mechanisms for businesses.
According to the policy document, the government intends to enhance credit guarantees for micro, small, and medium-sized enterprises (MSMEs), implement interest-drawback programmes, and expand equity-based financing options. By committing up to five percent of GDP to industrial financing and leveraging private-sector partnerships, the government aims to match its industrial ambitions with substantial financial resources.
Officials noted that the strategy is designed to strengthen Nigeria’s development finance architecture while improving access to long-term capital for priority industries.
Policy Launch and Strategic Objectives
The Nigeria Industrial Policy 2025 was formally launched by Bola Tinubu, who directed government ministries, departments, and agencies to ensure its rapid implementation.
The policy seeks to revive underperforming factories, expand domestic manufacturing capacity, and position Nigeria as a competitive industrial hub. It introduces a structured implementation framework that outlines clear timelines, institutional responsibilities, and measurable performance indicators to track progress.
A key element of the plan includes recapitalising the Bank of Industry to ₦3 trillion and scaling sector-specific intervention funds to similar levels. These measures are expected to support industrial expansion while strengthening local production capacity.
The framework also integrates fiscal, monetary, export, and industrial policies into a unified national strategy aimed at accelerating economic diversification and driving large-scale employment.
Expanded Funding and Institutional Collaboration
A major pillar of the policy is its ambitious financing target, which focuses on increasing access to long-term capital for strategic industries. The government plans to complete the recapitalisation of the Bank of Industry by 2026 while expanding sector-based intervention funds, many of which will be administered in partnership with the Central Bank of Nigeria.
These funds are expected to support priority sectors, enhance industrial productivity, and strengthen Nigeria’s global competitiveness by enabling large-scale production and export-orientated growth.
Alignment With National Economic Priorities
The policy closely aligns with the administration’s broader economic agenda, particularly its emphasis on local content development, import substitution, and industrial self-reliance. Among its key provisions is a “Nigeria First” approach that prioritises locally manufactured goods, reduces reliance on imported raw materials, and promotes value addition across critical sectors of the economy.
By encouraging domestic production and strengthening industrial supply chains, the framework aims to reduce external dependence while supporting sustainable economic development.
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Long-Term Targets and Expected Impact
The Nigeria Industrial Policy 2025 is designed to stimulate industrial expansion, promote value creation, and generate employment across the country. Approved in 2025, the framework represents a coordinated national strategy that integrates industrialisation, trade, and investment policies under a single implementation structure.
One of its primary long-term objectives is to increase the manufacturing sector’s contribution to Nigeria’s GDP to between 20 percent and 25 percent by 2030. If successfully implemented, the policy could significantly reshape the country’s industrial landscape and strengthen its position in global manufacturing and trade.
Overall, the initiative reflects a strategic effort to accelerate industrial transformation, expand production capacity, and create a more diversified and resilient economy.