FG Banks on Long-term Credit to Achieve Manufacturing Target
Omolabake Fasogbon The federal government has set a 20 per cent manufacturing growth target by 2030-2031 under the Nigerian Industrial Policy (NIP), banking on long-term financing to drive the expansion.
The Nigerian federal government aims for a 20 percent increase in manufacturing by 2030-2031, relying on long-term financing to fuel growth. Currently, manufacturers face difficulties obtaining long-term financing, which is crucial for sustaining industrial investments that typically take years to mature. This lack of suitable facilities has contributed to investors' reluctance in the productive sector, with credit availability for manufacturing sectors declining by about N1.9 trillion in 2025, representing a more than 22 percent decrease.
Finance Minister Taiwo Oyedele expressed concern over the situation, stating that the present scenario, where manufacturers borrow at a prime rate of 27 percent with maximum rates reaching the mid-30 percent range, poses a threat to investments that require seven, 10, or 15 years to deliver returns. To address these constraints, stakeholders from government, regulators, development finance institutions, and commercial capital providers must collaborate towards a more coordinated financing framework.
Dr Chris Isokpunwu, Permanent Secretary, Federal Ministry of Industry, Trade & Investment, emphasized the significance of affordable and patient capital to invest in machinery, technology, export production, and improve industrial competitiveness.
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