FG Unveils New Industrial Policy, Proposes N3tn Bank of Industry Recapitalisation
- The federal government has launched a new industrial policy to revive inactive factories and strengthen domestic manufacturing
- The government said the framework aligns with President Bola Tinubu’s Renewed Hope agenda on local content and import substitution
- The policy includes measures such as tax harmonisation, low-interest financing for SMEs, and industrial clusters with shared infrastructure
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s federal government has introduced a new industrial policy aimed at reviving inactive factories, boosting local manufacturing, and positioning the country as a stronger player in global industry.
Source: UGC
The Minister of State for Industry, John Owan Enoh, announced the framework during a meeting with members of the Nigerian Guild of Editors, The Cable reported.
FG links policy to economic transformation
Enoh said industrialisation remains key to Nigeria’s long-term economic growth. According to him, while trade and investment are important, sustainable prosperity depends on productive industries that can compete internationally.
The minister explained that the framework aligns with President Bola Tinubu’s Renewed Hope agenda, especially its focus on local content development, import substitution, and self-reliance in production.
He disclosed that he recently toured several dormant factories that were once operational to understand the challenges facing them and explore how they can be revived under the new policy.
Analysts highlight structured implementation
Policy experts described the new approach as different from previous industrial strategies because of its emphasis on implementation and accountability.
The Director-General of the Nigerian Institute for Policy and Strategic Studies, Ayo Omotayo, noted that past policies struggled largely due to weak execution.
He explained that the new framework introduces a clear implementation plan outlining specific targets, timelines, responsible actors, and measurable outcomes to ensure better results.
Among its major provisions, the policy seeks to strengthen the enforcement of a ‘Nigeria First’ approach to promote the use of locally made products.
It also aims to reduce dependence on imported raw materials and encourage value addition across priority sectors of the economy.
Recapitalisation of Bank of Industry proposed
A key component of the framework is the proposed recapitalisation of the Bank of Industry to N3 trillion.
The government is also proposing annual industrial development spending equivalent to three to five percent of Nigeria’s Gross Domestic Product (GDP), alongside expanding sector-specific intervention funds to the same N3 trillion level.
Other measures include harmonising tax systems and incentives, improving access to long-term and low-interest financing for micro, small and medium enterprises, and developing industrial clusters with shared infrastructure and energy supply.
Officials say these steps are intended to reduce production costs, improve competitiveness, and attract fresh investment into the sector.
Source: Getty Images
John Uwajumogu, Special Adviser to the President on Industry, Trade and Investment, said the policy is designed to deliver rapid growth capable of keeping pace with Nigeria’s expanding population.
According to him, achieving double-digit growth is necessary to meet the country’s development goals. He added that an industrial revolution working group has been set up to coordinate stakeholders and ensure proper execution.
Persistent challenges remain
Participants at the engagement identified energy shortages, limited access to finance, bureaucratic bottlenecks, skills deficits, and weak patronage of locally produced goods as ongoing challenges.
However, economists believe that with strong political commitment, structured financing, and accountability mechanisms, the policy could significantly advance Nigeria’s industrial revival.
Industry observers also stressed the importance of skills development, noting that Nigeria’s youthful population could become a major asset if adequately trained in modern manufacturing techniques.
The government said the framework will integrate vocational training and partnerships with technical institutions to close existing skills gaps.
Officials further pledged closer collaboration with the private sector, stating that sustainable industrial growth requires joint efforts, including attracting foreign direct investment and encouraging technology transfer to strengthen Nigeria’s manufacturing base.
BOI disburses N636bn loans; Agriculture takes largest share
Legit.ng earlier reported that the Bank of Industry disbursed N636 billion worth of loans to Nigerian businesses in 2025, with agribusiness receiving the largest allocation (N202 billion or 32% of the total allocation).
Infrastructure projects received N100 billion, while manufacturing accessed N79 billion. The extractive industries secured N77 billion, and services obtained N55 billion.
President Tinubu commended the bank, noting that the funding strengthened productive capacity and reflected economic reform progress.
Source: Legit.ng
