FG Unveils N800bn Boost for Agro-Processing, Renewable Energy
Atume Terfa
The Federal Government has announced plans to channel N800 billion into agro-processing and renewable energy under the newly introduced National Industrial Policy 2025, marking a decisive step toward diversifying Nigeria’s economy and strengthening its industrial backbone.
The policy, unveiled in Abuja by the Federal Ministry of Industry, Trade and Investment, presents a structured financing framework designed to reduce import dependence, boost local production and accelerate value addition across critical sectors of the economy.
Under the initiative, N500 billion has been earmarked for agro-processing to enhance food security, deepen agricultural value chains and expand domestic manufacturing capacity. Another N300 billion will be directed toward renewable energy projects aimed at improving electricity supply, lowering production costs and addressing long-standing infrastructure gaps. Beyond this immediate allocation, the government has committed to dedicating between three and five percent of Nigeria’s Gross Domestic Product annually to industrial development financing, signalling a sustained and long-term commitment to sector growth.
A major component of the strategy involves strengthening development finance institutions to provide accessible, long-term credit. Plans are underway to recapitalise the Bank of Industry to N3 trillion by 2026, while expanding sector-specific intervention funds from N1 trillion to N3 trillion to better meet industry financing needs. Authorities also intend to collaborate with regional and international development partners to secure single-digit interest funding for manufacturers, agro-entrepreneurs, renewable energy developers and rural enterprises.
The policy further prioritises public-private partnerships to unlock additional capital and technical expertise. Proposed credit guarantee schemes are expected to reduce risks for commercial lenders and encourage greater investment flows into priority industries. A five-year implementation roadmap spanning 2025 to 2030 outlines milestones focused on infrastructure upgrades, improved policy coordination, expanded access to finance for micro, small and medium enterprises, and regulatory stability.
In addition to domestic industrial expansion, the strategy seeks to integrate Nigerian businesses more firmly into regional and global value chains. A key objective is onboarding 1,000 new exporters into markets under the African Continental Free Trade Area by 2027, positioning local producers to tap into a vast continental market.
The N800 billion commitment signals more than financial intervention; it reflects a broader shift toward building a production-driven, export-oriented and energy-resilient economy. If effectively executed, the National Industrial Policy 2025 could lay the foundation for sustainable industrial growth and reduced reliance on oil revenues.
