The Federal Government has unveiled measures aimed at making Micro, Small and Medium Enterprises (MSMEs) the major beneficiaries of the Nigeria Industrial Policy (NIP) 2025, through low-interest financing, preferential government procurement, industrial clusters and digital transformation programmes.
The policy places MSMEs at the centre of Nigeria’s industrialisation agenda, recognising their contribution of about 50 per cent to the country’s Gross Domestic Product (GDP) and more than 80 per cent of national employment.
To improve access to finance, the policy provides sector-specific loans at single-digit interest rates of between five and nine per cent, particularly for manufacturers and agro-processors. It also proposes increasing the capital base of the Bank of Industry (BoI) to N3 trillion by 2026 to expand long-term financing for businesses.
The government also plans to strengthen credit guarantee schemes to encourage banks to lend more to small businesses, while continuing intervention programmes such as the N75 billion Federal Government MSME Intervention Fund and the N50 billion Presidential Conditional Grant Scheme.
To reduce production costs, the policy proposes the development of industrial clusters where MSMEs can share infrastructure, electricity, utilities and business support services. It also includes plans to expand Technology Business Incubator Centres (TBICs) to promote innovation and entrepreneurship, while strengthening the advisory services of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
A key feature of the policy is the “Nigeria First” initiative, which directs Ministries, Departments and Agencies (MDAs) to prioritise Made-in-Nigeria products in public procurement. The government believes this will create a more reliable domestic market for local manufacturers and encourage increased production.
The policy also promotes digital growth by targeting the onboarding of 25,000 SMEs onto digital trade platforms by 2026, enabling them to access e-commerce, digital payment systems and wider markets.
In addition, the government plans to invest in Technical and Vocational Education and Training (TVET), with emphasis on automation, mechatronics and digital manufacturing to improve the supply of skilled workers for the industrial sector.
Analysts say the success of the policy will depend on effective implementation, timely release of funding and sustained improvements in infrastructure, electricity supply and the overall ease of doing business in Nigeria.
