FG to invest N800bn in agro-processing, renewable energy under industrial policy

2026-02-18 - 15:56

The Federal Government has announced plans to invest N800 billion in the agro-processing and renewable energy sectors under the national industrial policy 2025. The disclosure was contained in the national industrial policy report launched on Tuesday by the Federal Ministry of Industry, Trade and Investment. According to the report, the government plans to dedicate between three and five per cent of Nigeria’s gross domestic product annually to industrial development financing. It said the planned N800 billion investment will be implemented through sector-specific credit allocations, with N500 billion earmarked for agro-processing and N300 billion for renewable energy. The report stated that the government would also reinforce and recapitalise domestic development finance institutions, in collaboration with continental and international partners, to address the long-term funding needs of industries at single-digit interest rates. Some of the measures outlined include the “recapitalisation of the Bank of Industry to N3 trillion by 2026 and increasing the scope of sector-specific intervention funds for industries from 1 trillion naira to 3 trillion naira, as contained in the stabilisation plan.” The government also announced the “introduction of a 5-year implementation roadmap (2025–2030) with milestones to achieve: policy stability coordination, PPP framework rollout, infrastructure upgrades and MSME finance expansion.” It added that the policy would leverage public-private partnerships to fund industrial projects, while combining government support with private-sector efficiency. “Leverage Public-Private Partnerships (PPPs) to fund industrial projects and combine Government support with private sector efficiency. Central Bank of Nigeria to develop mechanisms for commercial banks to improve lending to identified priority industries,” the report said. Furthermore, the government disclosed plans to introduce credit guarantees to reduce lending risks and expand access to finance for manufacturers, industrialists and entrepreneurs. The ministry said efforts would also be directed at building an enabling environment for innovative financing instruments, including equity financing, venture and impact capital, crowdfunding and factoring. In addition, the report revealed that the government aims to onboard 1,000 new exporters into African Continental Free Trade Area markets by 2027 as part of the national industrial policy. “Negotiation and implementation of bilateral and multilateral trade agreements, bolster trade negotiation capabilities, and integrate Nigerian firms into global value chains, aiming to onboard 1,000 new exporters to AfCFTA markets by 2027,” the report said. The onboarding initiative, the ministry added, is part of broader measures to improve competitiveness in marketing and distribution within the country and to position local firms for greater participation in regional and global value chains. Vanguard News