Allocation Of 5% GDP To Industrial Financing Will Boost Manufacturing

Pan-African Manufacturers Association (PAMA), on Friday said allocating up to five per cent of GDP to industrial financing will potentially reduce capital costs for manufacturers and encouraging large-scale investments.

The Association in its February 2026 News Bulletin stated that Nigeria’s newly launched industrial policy (NIP) 2025, will redefine industrialization as a cornerstone of the national economic strategy.

“Nigeria has launched the Nigeria Industrial Policy 2025 with the goal of redefining industrialization as a cornerstone of the national economic strategy.”

According to PAMA, this new industrial policy signifies a proactive approach to transforming the country’s economic framework. For many years, Nigeria’s economy has fluctuated between reliance on natural resources and fragmented efforts in industrial growth. This policy marks a pivotal shift towards a production-driven economy, emphasizing institutional collaboration and enhancing industrial competitiveness as the bedrock of national well-being.

“From the perspective of PAMA, this policy is an encouraging response to the long-standing calls from manufacturers and industrial stakeholders for a cohesive and well-resourced industrial strategy.”

The Association disclosed that in essence, the policy recognizes a fundamental truth which intentionality is key to successful industrialisation.

“With ambitious goals such as boosting manufacturing’s GDP contribution to 25 per cent, reviving inactive factories, increasing exports, and creating substantial employment, the government is positioning industrialization as a comprehensive macroeconomic strategy rather than a narrow intervention.

“Manufacturing is being repositioned as a vital tool for national resilience and economic stability, measuring growth through the establishment of factories, export expansion, and job creation, moving beyond reliance on oil revenue, as seen in the past. This approach draws inspiration from the developmental paths of countries like South Korea and Singapore, where industrial strength has led to sustained prosperity.”

It pointed out that “a noteworthy aspect of the policy is the commitment to allocate up to five per cent of GDP for industrial financing. This represents a significant shift in how corporate leaders can approach investment opportunities. Effective industrial policy requires financial backing; when combined, these elements can lead to reduced capital costs for manufacturers, encourage large-scale investments, and provide much-needed long-term financing that has often been lacking in Nigeria’s industrial sector. This shift can create opportunities for both survival and growth in manufacturing.”

It added that the policy’s emphasis on reducing structural costs is crucial, saying that “by implementing targeted measures to lower trade costs and enhance export competitiveness, the government acknowledges that Nigeria’s industrial challenges often stem from systemic issues rather than a lack of entrepreneurial spirit.

“Business leaders are well aware of these challenges: inefficiencies in logistics, energy supply instability, port congestion, regulatory overlaps, and policy unpredictability. The focus on developing competitive infrastructure, rather than relying heavily on subsidies, indicates a more sustainable and strategic approach to industrialization.”

PAMA noted that “for manufacturing leaders, achieving a competitive edge will increasingly rely on forming strategic partnerships, fostering supplier development, and optimizing regional market positioning, particularly within the context of the African Continental Free Trade Area (AfCFTA), which broadens opportunities beyond local markets.”