NIP 2025 outlines ₦3tn recapitalisation for Bank of Industry, PPP-driven funding to power mass production and exports…
The Federal Government has unveiled an ambitious plan to channel up to five per cent of Nigeria’s Gross Domestic Product (GDP) into industrial financing, marking one of the most aggressive funding commitments to the real sector in decades.
The initiative is anchored in the Nigeria Industrial Policy (NIP) 2025, released by the Federal Ministry of Industry, Trade and Investment, and is designed to reposition the economy toward large-scale production, export competitiveness and sustainable job creation.
At the heart of the framework is a bold financing strategy that combines public–private partnerships with strengthened development finance institutions to unlock long-term capital for priority industries.
5% GDP Commitment Signals Policy Shift
According to the policy document, sustainable industrial transformation cannot occur without adequate funding, a gap the government now intends to close decisively.
“We recognise that no policy succeeds without financing,” the document states. “This is why the NIP strengthens our development finance architecture: recapitalising the Bank of Industry, scaling sectoral intervention funds, mainstreaming credit guarantees for MSMEs, and introducing innovative schemes such as interest-drawback programmes and equity-based financing.
“By setting aside up to 5% of GDP for industrial financing and leveraging public–private partnerships, this government demonstrates its commitment to matching ambition with resources.”
The policy places particular emphasis on recapitalising the Bank of Industry to ₦3 trillion by 2026. Sector-specific intervention funds, many managed in collaboration with the Central Bank of Nigeria are also expected to expand significantly to channel affordable, long-term financing into manufacturing, agro-processing and other priority segments.
Tinubu Unveils Framework
Last week, President Bola Tinubu formally launched the Nigeria Industrial Policy 2025, directing ministries, departments and agencies to ensure swift and coordinated implementation.
The policy forms a central pillar of Tinubu’s “Renewed Hope” agenda, with a strong focus on local content development, import substitution and industrial self-sufficiency.
Beyond financing, the framework seeks to revive dormant factories, deepen domestic manufacturing capacity and position Nigeria as a competitive industrial hub within Africa and beyond.
A structured implementation roadmap accompanies the policy, detailing timelines, institutional responsibilities and measurable performance indicators, an attempt to avoid the execution gaps that plagued past industrial strategies.
‘Nigeria First’ and Export Push
A defining feature of the NIP 2025 is the introduction of a “Nigeria First” procurement policy, which prioritises locally manufactured goods in public spending.
The strategy also aims to reduce reliance on imported raw materials while promoting value addition across key sectors such as manufacturing, solid minerals and agro-processing.
By integrating fiscal, monetary, trade and industrial tools into a unified framework, the government hopes to accelerate diversification away from oil dependence and stimulate mass employment.
Manufacturing Targeted to Hit 25% of GDP
The long-term objective is to raise manufacturing’s contribution to Nigeria’s GDP to between 20 and 25 per cent by 2030, a significant leap from current levels.
Approved and validated in 2025, the Nigeria Industrial Policy is positioned as a coordinated national blueprint for industrial expansion, trade competitiveness and investment mobilisation.
If successfully executed, the 5 per cent GDP financing commitment could mark a turning point in Nigeria’s industrial journey, shifting the economy from consumption-led growth toward production-driven prosperity.
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