Industry financing set to receive 5% of GDP, a move expected to energize the manufacturing sector, says PAMA

The Pan African Manufacturers Association, or PAMA, has expressed its approval of the allocation of up to five percent of Nigeria's Gross Domestic Product to industrial financing under the newly introduced National Industrial Policy, as this move is expected to decrease capital costs for manufacturers and foster large-scale investments.

n

PAMA made this statement in its February 2026 News Bulletin, where it noted that the new policy will redefine industrialization as a key component of the national economic strategy, marking a significant shift in the country's approach to economic development.

n

The association views the new industrial policy as a proactive step towards transforming Nigeria's economic framework, which has historically been marked by fluctuations between reliance on natural resources and fragmented industrial growth efforts.

n

According to PAMA, this policy signifies a major turning point in the country's economic trajectory, as it moves towards a production-driven economy that emphasizes collaboration and competitiveness as the foundation of national well-being.

n

The association believes that the policy is a positive response to the long-standing calls from manufacturers and industrial stakeholders for a cohesive and well-resourced industrial strategy, recognizing manufacturing as a crucial aspect of the nation's industrialization efforts.

n

The policy aims to achieve ambitious goals, including increasing manufacturing's contribution to GDP to 25 percent, reviving inactive factories, boosting exports, and creating substantial employment opportunities, thereby positioning industrialization as a comprehensive macroeconomic strategy.

n

By repositioning manufacturing as a vital tool for national resilience and economic stability, the government is adopting a growth-oriented approach that focuses on the establishment of factories, export expansion, and job creation, rather than relying solely on oil revenue.

n

This approach draws inspiration from countries like South Korea and Singapore, where industrial strength has driven sustained prosperity and economic growth.

n

A key aspect of the policy is the commitment to allocate up to five percent of GDP for industrial financing, representing a significant shift in how corporate leaders can approach investment opportunities and providing a foundation for effective industrial policy implementation.

n

By combining financial backing with a well-structured industrial policy, the government can help reduce capital costs for manufacturers, encourage large-scale investments, and provide much-needed long-term financing that has often been lacking in Nigeria's industrial sector, creating opportunities for both survival and growth in manufacturing.