The Federal Government has disbursed a combined ₦140.8 billion to manufacturing companies and micro, small and medium enterprises (MSMEs) under its ₦200 billion business intervention programme, in a move aimed at boosting domestic production, supporting enterprise growth and creating employment opportunities.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this while delivering an address titled “Harnessing Nigeria’s Economic Potential for Greater Prosperity.”
According to the minister, 104 manufacturing businesses have received the full ₦75 billion allocated to the Manufacturing Sector Fund, while ₦65.8 billion has been disbursed to 15,018 businesses under the MSME Intervention Fund.
She said the interventions form part of the Federal Government’s broader strategy to strengthen local industries, improve productive capacity and support businesses facing financing constraints.
The funds are being administered through the Bank of Industry (BoI) as part of a ₦200 billion intervention package designed to stimulate economic activities across different categories of businesses.
The government’s intervention package consists of three major components targeting businesses at different levels of operation.
These include the ₦50 billion Presidential Conditional Grant Scheme for nano businesses, the ₦75 billion FGN MSME Intervention Fund for micro, small and medium-sized enterprises, and the ₦75 billion FGN Manufacturing Sector Fund for manufacturing companies.
Oduwole explained that the entire ₦75 billion manufacturing allocation had been disbursed to 104 businesses, while the MSME fund had recorded disbursements of ₦65.8 billion to 15,018 beneficiaries as of the first quarter of 2026.
The combined amount disbursed under the two funds stood at ₦140.8 billion, representing a substantial portion of the overall intervention package.
However, the minister emphasised that the effectiveness of the programme should not be judged by the amount released alone.
She said the real measure of success would be reflected in stronger businesses, increased production, improved livelihoods and the creation of sustainable employment.
The minister acknowledged that access to affordable financing remains one of the major obstacles confronting Nigerian manufacturers.
Many businesses require substantial capital to acquire modern equipment, purchase raw materials, expand production facilities, improve technology and increase their capacity to compete in local and international markets.
For small businesses, limited access to credit also affects their ability to maintain operations, expand into new markets and employ additional workers.
Oduwole said the government was working to remove barriers to investment, production and trade while creating an enabling environment for businesses to grow.
She added that Nigeria’s economic transformation would require fiscal discipline, monetary stability and policies that encourage domestic production and strengthen the competitiveness of local industries.
Providing an update on developments in the manufacturing sector, Oduwole highlighted growth recorded in selected industries during 2025 and the first quarter of 2026.
She disclosed that cement manufacturing grew by 11.53 per cent in the first quarter of 2026, while motor vehicle assembly expanded by 5.44 per cent during the same period.
According to her, vehicle assembly recorded an overall growth of 40.6 per cent in 2025, while cassava starch production increased by 474.74 per cent.
The minister said these developments demonstrated the opportunities available in strengthening local value chains and processing raw materials within the country.
She specifically identified cassava starch production as an area with significant potential, noting that locally processed cassava could supply industrial manufacturers and reduce dependence on imported alternatives.
“Processing locally grown cassava into industrial starch will support manufacturers, while vehicle assembly will create opportunities for engineers, technicians and supply-chain businesses,” she said.
The government believes that expanding these industries could generate employment across different sectors, including agriculture, engineering, logistics, transportation and industrial services.
Oduwole also highlighted opportunities available to Nigerian businesses through the African Continental Free Trade Area (AfCFTA), noting that intra-African trade had grown by 21 per cent.
She said the continental trade framework presents opportunities for Nigerian manufacturers to expand beyond the domestic market, access new customers and participate more actively in regional supply chains.
For local manufacturers to benefit from the opportunities, however, they would need to improve product quality, production capacity, competitiveness and compliance with relevant trade standards.
The minister’s remarks underscore the government’s ambition to position Nigeria as a stronger manufacturing and industrial hub within Africa.
The disbursement of the funds comes amid persistent concerns over the high cost of doing business, rising production expenses, access to credit and the pressure facing small businesses across Nigeria.
Although the government has presented the intervention programme as a means of supporting enterprises and stimulating economic activity, the long-term impact will depend on how effectively beneficiaries deploy the funds and whether the support translates into measurable business expansion.
Key indicators will include increased manufacturing output, improved capacity utilisation, job creation, business survival and stronger participation of locally produced goods in domestic and regional markets.
For thousands of MSMEs and manufacturing companies, access to funding could provide an opportunity to expand operations and improve productivity. However, businesses will also require a stable operating environment, reliable infrastructure, affordable energy and access to markets to sustain growth.
The Federal Government’s ₦200 billion intervention programme is therefore expected to play a role in its broader effort to strengthen domestic production and reduce the challenges confronting Nigerian businesses.
