- The Federal Government has earmarked ₦800 billion for agro-processing and renewable energy under the National Industrial Policy 2025.
- The plan includes recapitalising development finance institutions and expanding industrial credit to drive long-term growth.
The Federal Government has unveiled plans to invest ₦800 billion in agro-processing and renewable energy under the National Industrial Policy 2025. The policy aims to accelerate Nigeria’s industrial development.
The Federal Ministry of Industry, Trade and Investment announced the plan in the National Industrial Policy report launched on Tuesday, February 17.
According to the report, the government will dedicate between three and five per cent of Nigeria’s Gross Domestic Product each year to industrial development financing.
Of the ₦800 billion allocation, the government will channel ₦500 billion into agro-processing. It will direct ₦300 billion toward renewable energy development.
Meanwhile, the government will implement the funding through sector-specific credit allocations. The allocations will target industries critical to economic diversification, value addition and job creation.
As part of the financing framework, the government will recapitalise domestic development finance institutions. It will collaborate with continental and international partners to provide long-term industrial funding at single-digit interest rates.
One key measure includes recapitalising the Bank of Industry to ₦3 trillion by 2026. The government will also expand sector-specific intervention funds from ₦1 trillion to ₦3 trillion under its stabilisation plan.
Furthermore, the policy introduces a five-year implementation roadmap covering 2025 to 2030. The roadmap sets milestones for policy stability, coordination mechanisms, public-private partnership rollout, infrastructure upgrades and MSME financing expansion.
Under the framework, the government will leverage public-private partnerships to fund industrial projects. It will combine public support with private-sector operational efficiency. The Central Bank of Nigeria will develop mechanisms to improve commercial bank lending to priority sectors.
To reduce financing risks, the government will introduce credit guarantees. These guarantees will expand access to funding for manufacturers and entrepreneurs. The ministry will also promote innovative instruments such as equity financing, venture capital, impact investment, crowdfunding and factoring.
Beyond domestic financing, the policy strengthens export competitiveness. The government also plans to onboard 1,000 new exporters into markets under the African Continental Free Trade Area by 2027.
Officials said the onboarding initiative will strengthen trade negotiation capacity. It will also deepen Nigeria’s participation in regional and global value chains. In addition, it will improve marketing and distribution competitiveness for local firms.
Overall, the National Industrial Policy 2025 positions agro-processing and renewable energy as strategic pillars. The government aims to diversify the economy, reduce import dependence and drive sustainable industrial growth.