Nigeria Allocates 5% GDP to Industrial Financing Policy

The Federal Government of Nigeria has unveiled a plan to allocate 5% of the nation's Gross Domestic Product (GDP) to industrial financing under the Nigeria Industrial Policy (NIP) 2025. This policy aims to leverage public-private partnerships to drive large-scale production, enhance export competitiveness, and create jobs.

The NIP emphasizes adequate funding as critical for the success of industrial policies and reinforces the development of financial mechanisms, including the recapitalization of the Bank of Industry. President Bola Tinubu formally announced this initiative, directing ministries, departments, and agencies to ensure swift implementation.

The framework aims to consolidate fiscal and monetary measures to accelerate industrial transformation and promote diversification, with a target to increase manufacturing's contribution to Nigeria's GDP from 20% to 25% by 2030. The government plans to recapitalize the Bank of Industry with N3 trillion by 2026 and focus on local content development and import substitution to reduce dependency on imported raw materials.