Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has warned that Nigeria’s new industrial policy may fail unless the Federal Government moves beyond policy announcements and delivers practical support to businesses.
Oye acknowledged the ambition of the Nigeria Industrial Policy 2025 but argued that its success would depend on disciplined implementation and the ability of government programmes to reach entrepreneurs facing rising operating costs.
The policy, promoted by Minister of State for Industry, Senator John Owan Enoh, was launched by President Bola Tinubu in February.
It seeks to diversify the economy, stimulate manufacturing, expand exports and establish Nigeria as a major industrial centre.
Oye said the framework was detailed and aligned with continental initiatives such as the African Continental Free Trade Area.
However, he maintained that small businesses needed access to finance, electricity, infrastructure and relief from multiple taxation rather than additional policy documents.
“The policy itself is comprehensive and supported by evidence. But Nigerian small businesses do not need more documents. They need faithful implementation,” he said.
Micro, Small and Medium Enterprises reportedly contribute more than 46 per cent of Nigeria’s Gross Domestic Product and account for about 88 per cent of employment.
Despite their importance, Oye said many businesses were operating under severe pressure from inflation, currency instability, high energy costs and limited access to affordable credit.
The industrial policy seeks to raise manufacturing’s contribution to Gross Domestic Product to 15 per cent by 2030 and 25 per cent by 2035.
Its objectives include increased industrial financing, export diversification, technological development, job creation and the establishment of industrial clusters.
Oye warned that these targets could remain aspirational unless the government addressed the realities confronting entrepreneurs.
He cited reports suggesting that a large proportion of small businesses fail within their first five years, while millions of enterprises reportedly closed between January 2023 and June 2024.
According to him, high borrowing costs have made productive investment difficult.
He said commercial lending rates had risen above 35 per cent as the Central Bank of Nigeria’s Monetary Policy Rate remained at 26.5 per cent.
Many businesses, he added, were using available funds to pay rent, purchase fuel, replenish inventory and meet basic expenses rather than expand their operations.
Oye proposed emergency credit facilities at genuine single digit interest rates, longer repayment periods, targeted energy support and a temporary suspension of multiple taxes imposed by different levels of government.
He also called for industrial clusters with reliable electricity, water, roads and security.
To strengthen accountability, Oye recommended that the National Industrial Development Monitoring System publish quarterly reports showing the number of beneficiaries, locations, sectors, lending rates and jobs created through government programmes.
He also urged the Central Bank and other financial regulators to introduce stronger controls on digital lending platforms.
Oye alleged that some platforms were imposing annualized interest rates exceeding 300 per cent, pushing financially vulnerable Nigerians into repeated borrowing.
He cited cases in which borrowers received N65,000 but were required to repay N93,000 within seven days, with penalties pushing the obligation as high as N158,000 after default.
According to him, people excluded from conventional banking because they lack collateral, salary records or established credit histories are often forced to accept exploitative terms from digital lenders.
Oye described the practice as part of a wider poverty premium in which low income households pay more for food, healthcare, housing and credit.
He noted that poor families are often unable to buy food in bulk, causing them to pay more over time for smaller quantities.
He also linked poverty to delayed medical treatment, high rent burdens, malnutrition and poor educational outcomes.
Oye called for expanded financial inclusion, affordable housing, stronger social protection and better consumer safeguards.
He warned that without structural reforms, poverty would continue to impose the greatest costs on Nigerians with the fewest resources.
“The ambition is right. The execution must now match it,” he said.
