Nigeria is set to channel N800 billion into agro-processing and renewable energy as part of a push to reset industrial policy and reduce reliance on oil revenues.
The initiative, outlined in the National Industrial Policy (NIP) 2025 report launched by the Federal Ministry of Industry, Trade and Investment, signals a more interventionist approach to development financing at a time when Africa’s fourth largest economy is facing weak manufacturing output, foreign-exchange constraints and high inflation.
Under the framework, the government intends to allocate between 3 and 5 per cent of gross domestic product annually towards industrial development financing. Of the initial N800 billion envelope, N500 billion is earmarked for agro-processing and N300 billion for renewable energy.
The report sets out a five-year implementation roadmap covering 2025 to 2030, with milestones tied to policy coordination, infrastructure upgrades, expansion of finance for micro, small and medium-sized enterprises and the rollout of public-private partnership structures. It also envisages recapitalising domestic development finance institutions to extend long-term credit at single-digit interest rates.
Central to the financing architecture is a proposed expansion of intervention funds for industry from N1 trillion to N3 trillion, alongside the recapitalisation of the Bank of Industry to N3 trillion by 2026. Authorities say the objective is to crowd in private capital rather than displace it, leveraging public funds to de-risk projects in priority sectors.
The plan also assigns a role to the Central Bank of Nigeria (CBN), which is expected to design mechanisms that incentivise commercial banks to expand lending to identified industrial segments. This marks a continuation of targeted credit strategies that have been used intermittently in recent years to stimulate agriculture and manufacturing.
Officials argue that agro-processing can anchor rural job creation while reducing post-harvest losses and cutting the import bill for processed foods. Renewable energy investment, meanwhile, is framed as a hedge against chronic power shortages and rising fuel costs, with potential spillovers for manufacturing competitiveness.
Beyond domestic production, the industrial policy seeks to integrate Nigerian firms more deeply into regional and global value chains. The government aims to onboard 1,000 new exporters into markets under the African Continental Free Trade Area (AfCFTA) by 2027, part of a strategy to expand non-oil exports and strengthen trade negotiation capacity in bilateral and multilateral agreements.
