Nigeria Unveils New Industrial Policy to Revive Factories, Boost Manufacturing and Attract Investment

Story: Written by Myra February 16,2026
The federal government has launched a comprehensive industrial policy aimed at reactivating idle factories, strengthening domestic production, and positioning Nigeria as a competitive industrial hub.
John Owan Enoh unveiled the framework during an engagement with the Nigerian Guild of Editors, emphasizing that sustainable economic growth requires strong local industries rather than relying solely on trade and investment. The initiative aligns with President Bola Tinubu’s Renewed Hope agenda, prioritising local content, import substitution, and industrial self-sufficiency.
Enoh noted that he had visited several dormant factories to assess operational challenges and design strategies for their revival. The policy sets out a clear implementation plan with defined timelines, responsibilities, and measurable outcomes to ensure accountability.
Ayo Omotayo, director-general of the Nigerian Institute for Policy and Strategic Studies, highlighted that past industrial policies often failed due to weak execution. He said the new framework addresses this gap through structured oversight and delivery mechanisms.
Funding and Industrial Expansion
The plan includes recapitalising the Bank of Industry to N3 trillion and expanding sector-specific intervention funds to the same level. Annual industrial development spending is projected at 3–5% of GDP. Key initiatives include:
Promoting locally made products under the Nigeria First policy
Reducing reliance on imported raw materials
Expanding low-interest financing for SMEs
Harmonising tax systems and incentives
Developing industrial clusters with shared infrastructure and energy access
These measures are expected to lower production costs, improve competitiveness, and attract domestic and foreign investment.
Skills, Private Sector Partnerships, and Implementation
John Uwajumogu, special adviser to the president on industry, trade, and investment, stated that the policy will accelerate industrial growth to match Nigeria’s expanding population. An industrial revolution working group will oversee execution and ensure alignment among stakeholders.
The government also plans to expand vocational training and collaborate with technical institutions to close skills gaps in manufacturing. Partnerships with private sector players will be strengthened to encourage joint ventures, investment, and technology transfer.
While energy shortages, limited financing, bureaucracy, and low patronage of local goods remain significant challenges, economists say the success of the policy will hinge on political will, structured funding, and consistent implementation