The Nigerian government has expressed optimism about the progress of its industrial policy, launched in February 2026. Minister of State for Industry, Federal Ministry of Industry, Trade and Investment, Senator John Owan Enoh, stated that the policy is a step in the right direction and is yielding results. The policy, Nigeria's first comprehensive industrial plan since independence in 1960, aims to transform the country's industrial sector. Enoh highlighted several areas where progress has been made.
One of the key areas of progress is the activation of the Nigeria First Policy, which promotes patronage of Nigerian manufactured goods. The ministry is engaging with the Bureau of Public Procurement (BPP) to accelerate patronage of Nigerian-assembled automobiles and products of the Cotton, Textile and Garment (CTG) industries. This move is expected to boost local production and create jobs. Additionally, the government is working to enhance access to financing for Micro, Small, and Medium Enterprises (MSMEs) through a $69 million industrial cluster project with the African Development Bank (AfDB).
The industrial policy also focuses on strengthening linkages within the CTG value chains. This involves connecting cotton growers with ginneries and textile manufacturers, as well as linking garment manufacturers with textile producers. Furthermore, the government has made progress in skill acquisition and capacity development, with about 700 people trained in mechatronics. The Industrial Training Fund (ITF) is also running a skilled artisan program to equip Nigerians with relevant skills.
The Nigeria Industrial Policy sets out a clear roadmap for the country's industrial transformation. The policy's goal is to increase the manufacturing sector's contribution to Nigeria's Gross Domestic Product (GDP) to 15% by 2030 and 25% by 2035. Currently, manufacturing's contribution to GDP is less than 10%. The policy identifies priority industrial sectors, establishes enabling reforms, and codifies incentives to drive industrial growth.
A robust incentive framework is at the heart of the policy, comprising fiscal, monetary, export, and industrial measures. The framework aims to reduce the cost of doing business, spur investment, and foster innovation. It focuses on deepening access to finance, driving sectorial competitiveness, global and regional integration, as well as sustainability, innovation, and inclusive delivery.
The industrial policy was unveiled with a commitment to diversify Nigeria's economy, create inclusive prosperity, and secure the country's position as a leading industrial hub. Senator Enoh described the policy as a comprehensive framework that would drive Nigeria's industrial growth. The government is working to ensure that the policy's objectives are achieved, but challenges remain in its implementation.
Despite the progress made, there are still practical measures needed to firm up the policy's implementation and sustain the progress. The government must continue to engage with stakeholders and address challenges to ensure the policy's success. With effective implementation, Nigeria's industrial sector can contribute significantly to the country's economic growth and development.
Key points
- The Nigerian government aims to increase manufacturing's contribution to GDP to 15% by 2030 and 25% by 2035 through its industrial policy.
- The policy focuses on deepening access to finance, driving sectorial competitiveness, and fostering innovation to drive industrial growth.
- About 700 people have been trained in mechatronics as part of the government's skill acquisition and capacity development efforts.
