FG Commits 5% of GDP to Industrial Financing

The Federal Government has pledged to commit 5% of Nigeria’s GDP annually to industrial development financing, under the newly launched Nigeria Industrial Plan.

Unveiled in Abuja by the Ministry of Industry, Trade and Investment, the framework aims to raise manufacturing’s GDP share to 15% by 2030 and 25% by 2035, while mining is projected to reach 8% by 2030 and 10% by 2035.

A key pillar of the plan is aggressive financing. The government will recapitalise the Bank of Industry to ₦3 trillion by 2026 and expand sector-specific intervention funds at the Central Bank of Nigeria to provide long-term capital for priority sectors.

Minister of State for Industry, John Enoh, described the policy as a decisive shift in national priorities, identifying metals, oil and gas, construction, and manufacturing as immediate focus areas.

The plan introduces a new Economic Development Incentive, replacing the Pioneer Status Incentive, tying tax relief to measurable outcomes such as investment levels, production capacity, and job creation.

It also features an Interest Drawback Scheme for MSMEs, refunding part of interest payments once firms meet milestones in job creation and exports.

Vice President Kashim Shettima stressed that coordination across energy, trade, infrastructure, finance, skills, and innovation would determine success.

“It requires deliberate coherence… and purposeful partnership between government and the private sector,” he said.

The framework also emphasises sustainability, targeting 25% renewable energy usage in industry by 2030, aligning with Nigeria’s Energy Transition Plan and net-zero ambition by 2060. It calls for expanded R&D, automation, robotics, and digital manufacturing.

Backed by a five-year roadmap (2025–2030), the plan seeks to position Nigeria as a regional supply chain hub under AfCFTA, reduce import dependence, and boost exports, with expected gains in agro-processing, pharmaceuticals, petrochemicals, job creation, and poverty reduction.