5% GDP allocation to industrial financing, boost for manufacturing – PAMA

2026-03-18 - 07:03

The Pan African Manufacturers Association (PAMA) has applauded the allocation of up to five percent of Nigeria’s Groos Domestic Product (GDP) to industrial financing under the newly launched industrial policy (NIP), noting it will potentially reduce capital costs for manufacturers and encourage large-scale investments. The association stated in its February 2026 News Bulletin that the policy will redefine industrialisation as a cornerstone of the national economic strategy. PAMA noted that the 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.” According to the association, the policy recognizes manufacturing as key to the nation’s industrialization efforts. “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. “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 stated.