The federal government says it plans to allocate N800 billion to the agro-processing and renewable energy sectors under the national industrial policy 2025.
The government announced the plan in the ‘national
industrial policy’ report, launched by the Ministry of Trade, Industry, and
Investment, on Tuesday.
According to the report, the government intends to set aside
3 percent to 5 percent of gross domestic product (GDP) annually toward
industrial development financing.
The report said the government targets allocation of
sector-specific credit quotas, such as N500 billion for agro-processing and
N300 billion for renewable energy.
Also, the government said it is reinforcing and
recapitalising domestic development finance institutions (DFIs) — in
collaboration with continental and international DFIs — to address industries’
long-term funding needs at single-digit interest rates through strategic policy
actions.
Some of the actions, the government said, include
“recapitalisation of the Bank of Industry (BOI) 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 stabilization plan”.
“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,” the government
said.
“Leverage Public-Private Partnerships (PPPs) to fund
industrial projects and combine Government support with private sector
efficiency. CBN to develop mechanisms for commercial banks to improve lending
to identified priority industries.”
Furthermore, the government plans to provide credit
guarantees to reduce lending risks and improve access to financing for
industrialists and entrepreneurs.
The ministry added that efforts will also be made to create
an enabling environment for innovative financial instruments such as equity
financing, venture and impact capital, crowdfunding, and factoring.
In addition, the government aims to onboard 1,000 new
exporters to African Continental Free Trade Area (AfCFTA) markets by 2027 under
the national industrial policy 2025.
“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 reads.
The onboarding, the report said, forms part of measures
being implemented to enhance competitiveness in marketing and distribution
within Nigeria.
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