The Federal Government has stated that it will channel up to five per cent of Nigeria’s Gross Domestic Product annually into industrial development financing, as it targets a sharp rise in manufacturing contribution to the economy.

The plan is contained in the newly launched Nigeria Industrial Plan, unveiled in Abuja by the Federal Ministry of Industry, Trade and Investment. Under the framework, manufacturing is projected to contribute 15 per cent to GDP by 2030 and 25 per cent by 2035, while mining is expected to rise to eight per cent by 2030 and 10 per cent by 2035.

The policy consolidates fiscal, monetary, export, and industrial measures into a single national framework aimed at accelerating large-scale production, export competitiveness, and job creation.

A key pillar of the plan is aggressive financing. The government said it would recapitalise the Bank of Industry to N3tn by 2026 and expand sector-specific intervention funds, largely domiciled with the Central Bank of Nigeria, to increase long-term capital to priority sectors.

However, the framework did not spell out detailed funding sources and structure.

The government identified four sectors for immediate focus: metals and solid minerals, oil and gas, construction, and manufacturing. Minister of State for Industry, John Enoh, described the policy as a decisive shift in national priorities.

The framework introduced a consolidated incentive structure aligned with the Nigeria Tax Act 2025. It replaces the Pioneer Status Incentive with an Economic Development Incentive that ties tax relief to measurable outcomes such as investment levels, production capacity, and employment generation in priority sectors.

The policy also introduced an Interest Drawback Scheme for Micro, Small, and Medium Enterprises. Instead of upfront subsidised rates, eligible firms will pay commercial interest rates and receive partial refunds after meeting agreed milestones, including job creation and export growth.

Vice President Kashim Shettima stressed that coordination would determine the success of the policy. “As we advance the work of industrialisation, we must be clear-eyed about what it demands. It requires deliberate coherence across energy, trade, infrastructure, finance, skills, and innovation. Above all, it calls for a purposeful partnership between government and the private sector, working in alignment to deliver sustainable, inclusive growth,” Shettima said.

The framework also placed strong emphasis on technology and sustainability. It identifies automation, robotics, and digital manufacturing as central to future operations and calls for expanded research and development in priority sectors.

It set a target of achieving 25 per cent renewable energy usage in the industrial sector by 2030 and aligned industrial expansion with Nigeria’s Energy Transition Plan and net-zero ambition by 2060.

On human capital development, the plan proposed a revamp of Technical and Vocational Education and Training programmes to build a skilled manufacturing workforce. It also sought to harmonise the roles of academia, public institutions, and the private sector to strengthen industrial skills and innovation.

The government said the policy comes at a crucial stage of the African Continental Free Trade Area implementation and aims to position Nigeria as a net exporter of manufactured goods and a regional supply chain hub.

By promoting local production of critical inputs, including active pharmaceutical ingredients, the plan seeks to reduce import dependence and ease foreign exchange pressures.

Backed by a five-year implementation roadmap from 2025 to 2030, the Nigeria Industrial Plan outlines strategic objectives, responsible institutions, and measurable outcomes.

Officials said clearer incentives and expanded financing would reduce investor uncertainty and unlock stalled projects in the near term, while the medium-term outlook includes stronger agro-processing, pharmaceuticals, and downstream petrochemicals, expanded exports, job creation, and poverty reduction.