BoI Pushes for Competitive Industrial Base to Boost Nigeria’s Manufacturing Sector

The Bank of Industry (BoI) has underscored the urgent need for Nigeria to build a more competitive industrial base, noting that strategic reforms, stronger partnerships, and enhanced support for local manufacturers are critical if the country is to sustain growth, reduce import dependence, and maximise gains from regional trade arrangements.

Speaking recently at a national stakeholders’ meeting focused on industrial revival, the Managing Director of BoI, Dr. Olasupo Olusi, said that Nigeria has the capacity to transform its industrial landscape but that several systemic obstacles must be addressed. According to him, these include high cost of production, inconsistent power supply, foreign exchange volatility, poor infrastructure, and weak value-chain linkages. He added that, without decisive action to mitigate these constraints, Nigerian manufacturers may remain uncompetitive both locally and in export markets.

Dr. Olusi emphasised that BoI is stepping up its role not only as a financier but as a catalyst for industrial competitiveness. Among its initiatives are financing schemes targeted at manufacturers, support for innovation in production techniques, and facilitating access to inputs, technology, and export markets. He highlighted recent disbursements under BoI’s Manufacturing Sector Intervention Fund, which have helped several firms to upgrade machinery and enhance production capacity.

One of the top priorities identified by BoI is reviving the textile and garment sector. In Lagos and Kaduna, many textile facilities are reportedly under-utilised or shut down despite having operational machinery. While policy support and funding have been pledged, Dr. Olusi urged textile manufacturers to rethink business models, adopt modern technology, seek greater efficiency, and leverage export potential under trade arrangements such as the African Continental Free Trade Area (AfCFTA).

Complementing funding, BoI is promoting strategic partnerships. It has formalised collaboration with trade organisations including the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN), and others. These partnerships are meant to deepen outreach to small and medium enterprises (SMEs), ensure better coordination among stakeholders, and align incentives for industrial growth.

Another area BoI is focusing on is the informal sector, especially artisans and technicians. In a recent strategy unveiled for 2025-2027, the bank plans to empower over 12 million artisans and technicians through access to training, improved tools, financial inclusion, and market linkages. BoI considers this group foundational to Nigeria’s manufacturing revival because they often supply local needs and add value in many cottage and light industries.

BoI has also stressed sustainability in its industrial competitiveness agenda. It is promoting energy-efficient manufacturing, cleaner production methods, and reducing environmental impact. The Manufacturers Association has already commended BoI for helping firms adopt practices that reduce energy consumption and operational cost, such as resource-efficient cleaner production (RECP) and industrial energy efficiency (IEE) programs.

Policy reform remains central to the BoI’s pitch. The bank is urging the government to stabilise foreign exchange, lower the cost of borrowing, improve power supply, invest in infrastructure (particularly roads, rail, and logistics), enforce consistency in trade policy, and strengthen regulatory frameworks to reduce bottlenecks. Dr. Olusi insists that industrial policies must be predictable, and administrative best practices must support the ease of doing business for manufacturers.

Observers believe that a competitive industrial base would stimulate employment, increase Nigeria’s exports of manufactured goods, reduce import bills, and preserve foreign exchange reserves. Especially under AfCFTA, Nigerian industries that can meet standards and reduce production costs will be well-positioned to serve regional markets as well as local demand.

However, caution is also being raised. Some manufacturers noted that past intervention funds have often suffered delays in disbursement, lack of transparency, or mismatches between policy intent and implementation. They argue that unless BoI and government agencies maintain strong oversight, accountability, and timely execution, industrial competitiveness efforts may fall short of expectations.

In response, BoI has committed to more frequent stakeholder engagements, improved monitoring of funded projects, and performance tracking of output, export, and employment metrics. The bank is also exploring innovative financing instruments to reduce risks for manufacturers and enable them to modernise without being overwhelmed by financing costs.

In essence, BoI frames industrial competitiveness as a multi-dimensional challenge—requiring policy, funding, infrastructure, technology, and human capacity all moving together. BoI’s leadership warns that while the opportunity is large, failure to act decisively could mean continued deindustrialisation, loss of jobs, and growing import dependency.

As Nigeria pushes forward with its industrial ambitions, all eyes will be on how quickly and effectively the government and BoI can turn strategies and funding into visible improvements on factory floors, in export volumes, and in the livelihoods of millions dependent on manufacturing.

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