The Federal Government has announced plans to allocate up to five per cent of Nigeria’s Gross Domestic Product annually for industrial development financing.
This move aims to significantly increase the manufacturing sector’s contribution to the economy.
The initiative forms part of the newly launched Nigeria Industrial Plan, which was unveiled in Abuja by the Federal Ministry of Industry, Trade and Investment.
Under the plan, manufacturing is projected to contribute 15 per cent to GDP by 2030 and 25 per cent by 2035. Mining is expected to rise to eight per cent by 2030 and 10 per cent by 2035.
The policy brings together fiscal, monetary, export, and industrial measures into one unified national framework. It focuses on accelerating large-scale production, enhancing export competitiveness, and generating jobs.
Aggressive financing stands as a core element of the plan. The government intends to recapitalise the Bank of Industry to N3tn by 2026 and broaden sector-specific intervention funds, mostly managed by the Central Bank of Nigeria, to provide more long-term capital for key sectors.
The framework does not provide specific details on funding sources and structures.
Four sectors have been prioritised for immediate attention: metals and solid minerals, oil and gas, construction, and manufacturing. Minister of State for Industry, John Enoh, described the policy as a decisive shift in national priorities.
The plan introduces a consolidated incentive structure aligned with the Nigeria Tax Act 2025. It replaces the Pioneer Status Incentive with an Economic Development Incentive that links tax relief to measurable results, including investment levels, production capacity, and employment in priority sectors.
An Interest Drawback Scheme has been introduced for Micro, Small, and Medium Enterprises. Eligible firms will pay commercial interest rates upfront and receive partial refunds after achieving agreed milestones, such as job creation and export growth.
Vice President Kashim Shettima emphasised the importance of coordination for the policy’s success. “As we advance the work of industrialisation, we must be clear-eyed about what it demands. It requires deliberate coherence across energy, trade, infrastructure, finance, skills, and innovation. Above all, it calls for a purposeful partnership between government and the private sector, working in alignment to deliver sustainable, inclusive growth,” Shettima said.
The framework places strong emphasis on technology and sustainability. It highlights automation, robotics, and digital manufacturing as essential for future operations and advocates for increased research and development in priority sectors.
The plan targets 25 per cent renewable energy usage in the industrial sector by 2030. It aligns industrial growth with Nigeria’s Energy Transition Plan and the goal of net-zero emissions by 2060.
For human capital, the plan proposes reforms to Technical and Vocational Education and Training programmes to develop a skilled workforce for manufacturing. It also aims to align efforts among academia, public institutions, and the private sector to build industrial skills and innovation.
The government noted that the policy arrives during the key phase of African Continental Free Trade Area implementation. It seeks to establish Nigeria as a net exporter of manufactured goods and a regional supply chain hub.
By encouraging local production of critical inputs, such as active pharmaceutical ingredients, the plan aims to cut import reliance and reduce foreign exchange pressures.
Supported by a five-year implementation roadmap spanning 2025 to 2030, the Nigeria Industrial Plan details strategic objectives, responsible institutions, and measurable outcomes.
Officials indicated that clearer incentives and increased financing would lower investor uncertainty and revive stalled projects in the short term. In the medium term, the plan anticipates stronger agro-processing, pharmaceuticals, and downstream petrochemicals, along with expanded exports, job creation, and poverty reduction.
