The Federal Government of Nigeria plans to channel up to five per cent of the nation’s Gross Domestic Product (GDP) annually into industrial development as part of a renewed drive to reposition the economy toward large-scale production, export competitiveness and job creation.

The proposal is contained in the Nigeria Industrial Plan (NIP) unveiled in Abuja last week. The policy harmonises fiscal, monetary, export and industrial measures into a unified national framework aimed at accelerating the country’s industrial transformation.

The plan seeks to leverage Nigeria’s natural and human capital to drive inclusive and sustainable manufacturing growth, deepen economic diversification and generate mass employment. However, it does not provide detailed clarification on the sources or structure of the proposed funding.

Under the framework, manufacturing is projected to contribute 15 per cent to GDP by 2030 and 25 per cent by 2035. The mining sector is expected to account for eight per cent of GDP by 2030 and 10 per cent by 2035. Four priority sectors have been earmarked for immediate focus: metals and solid minerals, oil and gas, construction, and manufacturing.

Minister of State for Industry, John Owan Enoh, described the initiative as a decisive shift in national priorities. He said the framework introduces a consolidated incentive architecture aligned with the Nigeria Tax Act 2025.

A major feature of the policy is the introduction of the Economic Development Incentive, which replaces the Pioneer Status Incentive. Under the revised regime, tax relief will be tied to measurable outcomes, including investment levels, production capacity and employment generation within priority sectors.

The plan also introduces an interest drawback scheme for Micro, Small and Medium Enterprises (MSMEs). Instead of upfront subsidised rates, eligible firms will pay commercial interest rates and receive partial refunds upon meeting agreed performance benchmarks such as job creation or export growth.

Vice President Kashim Shettima stressed that successful industrialisation would depend on cross-sectoral coordination. He noted that coherence across energy, trade, infrastructure, finance, skills development and innovation would be critical, alongside purposeful collaboration between government and the private sector to achieve sustainable and inclusive growth.

The framework places strong emphasis on technology and sustainability, identifying automation, robotics and digital manufacturing as central to future industrial operations. It calls for expanded research and development in priority areas and sets a target of achieving 25 per cent renewable energy use in the industrial sector by 2030, in alignment with Nigeria’s Energy Transition Plan and its net-zero emissions target by 2060.

On human capital development, the policy proposes a revamp of Technical and Vocational Education and Training programmes to build a high-value, locally relevant manufacturing workforce. It also seeks stronger alignment among academia, public institutions and the private sector to enhance industrial skills and innovation.

A central pillar of the plan is an ambitious financing target. The government intends to recapitalise the Bank of Industry to N3 trillion by 2026 and expand sector-specific intervention funds, largely domiciled with the Central Bank of Nigeria, to boost the availability of long-term capital for priority industries.