FG Plans Recapitalisation Of BOI To N3trn

…To Boost Industrial Growth With N800bn Funding, Credit Guarantees

The Federal Government has unveiled plans to recapitalise the Bank of Industry (BOI) to N3trn 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 N800bn 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, N500bn has been earmarked for agro-processing, while N300bn 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 sector-specific intervention funds from N1trn to N3trn under the national stabilisation plan.

The move is designed to provide long-term funding at single-digit 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.

The policy includes a five-year implementation roadmap spanning 2025 to 2030, with defined milestones focused on policy stability, improved coordination, public-private partnership (PPP) framework rollout, infrastructure upgrades, and MSME finance expansion.

The government said PPPs would play a central role in funding industrial projects by combining public sector support with private sector efficiency and expertise. The strategy is expected to accelerate project delivery while easing fiscal pressure on the government.

On trade expansion, the policy aims to onboard 1,000 new exporters into markets under the African Continental Free Trade Area (AfCFTA) by 2027.

This objective forms part of broader measures to enhance Nigeria’s competitiveness in marketing and distribution, strengthen trade negotiation capabilities, and integrate local firms into regional and global value chains.

Officials said the comprehensive financing and reform measures are designed to reposition Nigeria’s industrial sector as a major driver of economic growth, job creation, export diversification, and sustainable development over the medium term.