FG to Channel Up to 5% of GDP into Industrial Financing

The Federal Government has announced plans to direct up to five per cent of Nigeria’s Gross Domestic Product toward industrial financing, marking a significant step in its effort to stimulate large-scale manufacturing, strengthen export capacity, and expand employment opportunities.

The proposal is contained in the Nigeria Industrial Policy 2025, issued by the Federal Ministry of Industry, Trade and Investment, which outlines a coordinated strategy to transition the economy toward production-driven growth and improved industrial output.

Within the document, authorities emphasise that sustainable industrialisation depends heavily on access to affordable long-term capital. To address this, the policy prioritises strengthening development finance institutions, including a planned recapitalisation of the Bank of Industry, alongside expansion of sector-specific funding windows and broader use of credit guarantees to support small and medium-scale enterprises.

The framework also introduces new financing models such as equity participation schemes and interest-rebate mechanisms designed to lower borrowing costs and widen private-sector participation. Officials say the commitment to allocate a defined share of national output to industrial funding, combined with public-private partnerships, underscores the government’s intention to align financial resources with its industrial ambitions.

Read Also:

• FG to Deepen Non-Oil Export Drive in 2026
• Remittance of 1% Nigerian Content Levy Remains Mandatory — NCDMB

President Bola Tinubu formally presented the policy and directed government institutions to accelerate execution, signalling that implementation will be central to the administration’s economic reform agenda.

The policy seeks to revive idle manufacturing capacity, boost domestic production, and position Nigeria as a stronger player in regional and global value chains. It provides a structured rollout plan featuring timelines, institutional mandates, and measurable benchmarks intended to track progress and ensure policy continuity.

As part of the financing push, intervention programmes — many coordinated with the Central Bank of Nigeria — are expected to scale up to channel long-term capital into priority industries, while the development finance architecture is being redesigned to better support industrial expansion.

The strategy integrates fiscal, monetary, trade, and industrial measures into a single national framework aimed at accelerating diversification, deepening local production, and generating large-scale employment.

It also reflects the administration’s broader economic direction, particularly its focus on strengthening domestic value chains, reducing import dependence, and promoting industrial self-sufficiency. Central to the framework is a proposed “Nigeria First” approach to procurement intended to prioritise locally produced goods and encourage value addition across key sectors.