New policy: FG to channel 5% of GDP into industrial funding

The Federal Government has announced a new industrial financing plan that could improve access to long-term funding for Nigerian manufacturers and producers

Under a proposed national industrial framework, the Federal Government says it wants to spend 3%–5% of GDP annually on industrial development, while also recapitalising the Bank of Industry (BOI) to ₦3 trillion by 2026. Sector-specific intervention funds are also expected to expand to a similar scale.

The goal sounds straightforward: bring idle factories back to life, strengthen local supply chains, and make “made-in-Nigeria” products more competitive in price and quality. But the real issue is execution. 

Businesses will judge the plan by how fast the funding becomes available, how clear and transparent the process is, and whether the money reaches companies that can truly grow output, jobs, and exports.

For manufacturers, the key message is that government wants industrial loans to be cheaper, longer-term, and bigger in size than what most commercial banks typically offer. If the BOI recapitalisation proceeds as planned, the bank should have greater capacity to fund equipment upgrades, energy solutions, and working capital, especially for firms facing high operating costs and foreign exchange pressure.

Still, bigger numbers alone won’t automatically deliver results. Manufacturers will be looking for strong governance, clear eligibility rules, and outcomes that can be tracked,like factory reopenings, higher production, and real import substitution that reduces demand for foreign currency. 

Investors and lenders will also pay attention to coordination, because industrial credit works best when power supply improves, logistics costs fall, and trade policy remains stable.