Nigerian Industrial Policy: FG Targets 25% Manufacturing Contribution to GDP by 2030

Nigeria’s Federal Government unveils the Nigerian Industrial Policy (NIP), aiming to boost manufacturing to 25% of GDP by 2030 through value addition, industrial growth, and job creation.

Nigerian Industrial Policy: FG Targets 25% Manufacturing Contribution to GDP

The Federal Government has unveiled a bold roadmap to reposition Nigeria’s industrial sector, with a clear target: raise manufacturing’s contribution to the nation’s Gross Domestic Product (GDP) to as much as 25 percent by 2030.

The new framework, known as the Nigerian Industrial Policy (NIP), is designed to drive value addition, accelerate industrial growth, expand employment opportunities, and reduce Nigeria’s long-standing dependence on imports. It represents one of the most ambitious industrial reform efforts in recent years, coming at a time when the country is grappling with inflation, unemployment, foreign exchange pressures, and a fragile manufacturing base.

The policy was introduced at a soft launch in Lagos by the Minister of State for Industry, Senator John Enoh, during the presentation of the Nigerian Economic Summit Group (NESG) Macroeconomic Outlook Report for 2026. According to the minister, the NIP—approved and validated in 2025—is a strategic tool aimed at transforming Nigeria’s vast industrial potential into measurable productivity and sustainable economic growth.

“Over the last year, discussions around industrialisation have become more public and more urgent,” Enoh said. “This policy was shaped with industry, not for industry. It ensures that every Nigerian has a stake in the process, and that implementation is front and centre.”

A Shift From Rhetoric to Results
For decades, Nigeria has spoken about industrialisation, yet manufacturing has remained underdeveloped, contributing less than 10 percent to GDP in many years. The NIP seeks to break that cycle by moving beyond policy rhetoric to actionable frameworks that can deliver real outcomes.

Enoh explained that the policy aligns directly with President Bola Tinubu’s eight-point national agenda, particularly Agenda Seven, which focuses on economic diversification and industrialisation. By placing manufacturing at the heart of national development, the government hopes to reduce Nigeria’s vulnerability to commodity price shocks, especially in the oil sector.

“The policy aims to raise manufacturing’s contribution to Nigeria’s GDP to between 20 and 25 percent by 2030,” the minister noted. “That is not an abstract ambition—it is a measurable target tied to jobs, productivity, and competitiveness.”

Six Pillars for Industrial Transformation
At the core of the Nigerian Industrial Policy are six strategic pillars designed to tackle the structural weaknesses that have long hindered industrial growth:

Competitive industrial production – lowering the cost of doing business and improving productivity.

Value-chain deepening – encouraging local processing of raw materials instead of exporting them in crude form.

Import substitution – reducing dependence on foreign goods by strengthening domestic manufacturing.

MSME-to-industry transition – helping small and medium enterprises scale into full industrial players.

Trade competitiveness under AfCFTA – positioning Nigerian manufacturers to compete effectively within the African Continental Free Trade Area.

Institutional governance – strengthening regulatory frameworks and coordination across government agencies.

These pillars are designed to confront Nigeria’s long-standing challenges, including fragmented value chains, weak infrastructure, high import dependency, and limited manufacturing capacity.

One example cited by the minister is the recent temporary ban on raw shea nut exports. The move, though controversial in some quarters, highlights the need for structured value addition and regulatory clarity. Rather than exporting raw commodities, Nigeria aims to process them locally, create jobs, and capture more value within its borders.

“We did not produce a policy just to admire it,” Enoh said. “A small committee is already working on implementation, because what matters most is turning strategy into jobs, productivity, and employment.”

From Policy to Practice
A major weakness of past reforms has been poor execution. The government appears determined to avoid that trap with the NIP. According to the minister, implementation has already begun, even before the formal launch.

The full unveiling of the policy is scheduled for next month, with President Bola Tinubu expected to preside over the event. The Ministry of Industry, Trade and Investment will work closely with the Nigerian Economic Summit Group (NESG) to ensure broad stakeholder engagement, including manufacturers, investors, financial institutions, and state governments.

“The question is no longer what the policy is,” Enoh stressed. “The question is how we deliver. Nigeria’s industrial future will not be built by chance, but by deliberate policy, disciplined execution, and collective resolve.”

Why This Matters for Nigeria
If successfully implemented, the Nigerian Industrial Policy could mark a turning point for Africa’s largest economy. A stronger manufacturing sector means:

• More jobs, particularly for young people.
• Reduced pressure on foreign exchange, as imports decline.
• Greater resilience against global economic shocks.
• Stronger participation in regional trade under AfCFTA.
• Increased value retention from Nigeria’s vast natural resources.

Countries that have achieved sustained growth—such as China, South Korea, and Vietnam—did so through deliberate industrial policies that prioritized manufacturing and exports. Nigeria’s challenge has never been lack of potential, but the absence of consistency and coordination.

The NIP signals a renewed attempt to change that narrative. By aligning policy with measurable targets and embedding implementation from the outset, the government is seeking to restore confidence among investors and manufacturers who have long struggled with uncertainty and policy reversals.

Whether the ambitious target of 25 percent GDP contribution will be achieved remains to be seen. However, the framework offers a clearer path than Nigeria has had in years. For businesses, workers, and policymakers alike, the success of this policy may determine whether Nigeria finally transitions from a resource-dependent economy to a truly industrial one.