Nigeria Unveils Fresh Industrial Policy to Revive Factories, Drive Manufacturing

Raheem Akingbolu

Nigeria has unveiled a new Industrial Policy designed to revive dormant factories, strengthen domestic manufacturing, and reposition the country as a competitive industrial hub.  

Announcing the framework during an engagement with journalists in Lagos on Friday, the Minister of State for Industry, Senator John Owan Enoh, said industrialisation is central to Nigeria’s economic transformation.

He stressed that while trade and investment remain important, lasting prosperity depends on productive industries that can compete globally.  

The policy is closely aligned with President Bola Ahmed Tinubu’s Renewed Hope agenda, particularly its emphasis on local content, import substitution, and industrial self‑sufficiency. Senator Enoh disclosed he had recently visited several once‑thriving but now inactive factories to assess operational challenges and identify pathways for their revival under the new framework.  

Analysts describe the initiative as a marked departure from previous strategies, citing its structured implementation plan and accountability mechanisms.

Professor Ayo Omotayo, Director‑General of the Nigerian Institute for Policy and Strategic Studies, noted that earlier policies failed largely due to weak execution.

He emphasised the new framework introduces a detailed implementation matrix with clear objectives, timelines, actors, deliverables, and measurable outcomes.  

Key provisions include enforcing the Nigeria First policy to encourage patronage of locally made goods, reducing reliance on imported raw materials, and promoting value addition across critical sectors.

The framework also proposes annual industrial development spending of three to five per cent of Gross Domestic Product, recapitalisation of the Bank of Industry to ₦3 trillion, and expansion of sector‑specific intervention funds to the same level.  

Additional measures cover harmonisation of tax systems, incentives and waivers, improved access to long‑term, low‑interest financing for micro, small and medium enterprises, and the establishment of industrial clusters with shared infrastructure and energy facilities.

These initiatives are expected to lower production costs, enhance competitiveness, and attract new investment.  

Special Adviser to the President on Industry, Trade and Investment, Mr. John Uwajumogu, said the policy is designed to drive exponential growth to match Nigeria’s rapidly expanding population.

He stressed that double‑digit growth rates are essential to meet national development aspirations, adding that an Industrial Revolution Working Group has been established to coordinate stakeholders and ensure effective execution.  

Stakeholders at the engagement identified energy insecurity, financing constraints, bureaucracy, skills gaps, and weak patronage of local products as persistent challenges.

Economists, however, believe that with political will, structured financing, and accountability frameworks, the new policy could mark a turning point in Nigeria’s quest for industrial revival and sustainable economic transformation.  

Industry observers also highlight the importance of skills development, noting that Nigeria’s youthful population presents a significant opportunity if adequately trained for modern manufacturing processes.

The policy framework is expected to integrate vocational training and partnerships with technical institutions to bridge existing skills gaps.  

Furthermore, the government has pledged to strengthen collaboration with the private sector, recognising that industrial growth cannot be achieved by public investment alone.

Officials say the policy will encourage joint ventures, attract foreign direct investment, and foster innovation through technology transfer, ensuring that Nigeria’s industrial base is globally competitive.