The Federal Government has unveiled plans to recapitalise the Bank of Industry (BOI) to N3trillion by 2026 as part of a broader strategy to stimulate industrial growth, deepen access to long-term financing, and strengthen Nigeria’s productive base.
The recapitalisation forms a key pillar of the National Industrial Policy 2025, launched on Tuesday by the Federal Ministry of Trade, Industry and Investment. The policy outlines an ambitious financing framework that includes the allocation of N800billion to agro-processing and renewable energy, expansion of intervention funds, and increased collaboration with development finance institutions (DFIs) and private sector partners.
According to the policy document, the government intends to dedicate between three and five percent of Nigeria’s Gross Domestic Product (GDP) annually to industrial development financing. This commitment is aimed at addressing persistent structural constraints, including limited access to affordable credit, infrastructure deficits, and weak integration into regional and global value chains.
Under the sector-specific financing plan, N500 billion has been earmarked for agro-processing, while N300 billion will be directed toward renewable energy development. The targeted intervention is expected to enhance value addition in agriculture, improve energy access for manufacturers, and accelerate industrial competitiveness.
In addition to the BOI recapitalisation, the government said it would expand the scope of sectorspecific intervention funds from N1trillion to N3trillion under the national stabilisation plan. The move is designed to provide long-term funding at singledigit interest rates to priority industries, particularly micro, small and medium enterprises (MSMEs).
The policy also emphasises the strengthening and recapitalisation of domestic DFIs in collaboration with continental and international finance institutions to address long-term funding gaps. Authorities said these measures would help de-risk industrial lending and crowd in private capital. As part of the financing reforms, the government plans to introduce credit guarantees to reduce lending risks for financial institutions and improve credit access for industrialists and entrepreneurs.
The Central Bank of Nigeria (CBN) is expected to develop mechanisms to encourage commercial banks to increase lending to identified priority sectors. To further mobilise capital, the government intends to create an enabling environment for innovative financial instruments, including equity financing, venture capital, impact investment, crowdfunding, and factoring. Officials said diversifying funding sources would reduce overreliance on traditional debt financing and improve capital formation within the industrial sector.
