Nigeria Targets Revenue Recovery as Industrial Policy Launch Anchors Economic Reform Push
Nigeria unveiled its Industrial Policy 2025 while confronting ₦8 trillion in annual revenue losses from concessions, as the government pursues trade expansion and energy infrastructure development to stabilize the economy.
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Nigeria's federal government launched a comprehensive industrial policy framework while simultaneously addressing massive revenue leakages that cost the treasury ₦8 trillion annually, signaling a dual approach to economic stabilization through both growth initiatives and fiscal discipline.
President Bola Tinubu unveiled the Nigeria Industrial Policy 2025 on February 17, directing ministries, departments and agencies to prioritize implementation with measurable outcomes. According to statements from the presidency, policy execution will be evaluated based on concrete metrics including factories constructed, jobs created, and export volumes through Nigerian ports, marking a departure from previous policy frameworks that lacked clear performance indicators.
The industrial policy rollout coincides with parliamentary scrutiny of substantial revenue losses. James Faleke, chairman of the House of Representatives committee overseeing concessions and waivers, disclosed that Nigeria forfeits ₦8 trillion annually through tax exemptions and duty waivers. Faleke emphasized in a statement that the committee would enforce transparency and implement periodic reviews of concession processes to stem the hemorrhaging of public funds.
The ₦8 trillion figure represents approximately 15 percent of Nigeria's projected 2026 budget, highlighting the scale of foregone revenue at a time when the government faces mounting debt service obligations and pressure to fund infrastructure development. The revelation comes as Nigeria's debt-to-GDP ratio has climbed above 40 percent, according to Debt Management Office data, constraining fiscal space for development spending.
On the energy front, the Nigerian National Petroleum Company Limited announced plans to increase domestic gas supply by 1.8 billion cubic feet per day in 2026. The state oil company disclosed the expansion target during a media briefing in Abuja, positioning the initiative as critical to meeting rising industrial and power generation demand. Nigeria currently produces approximately 7 billion cubic feet of gas daily, meaning the planned addition represents a 25 percent capacity increase.
The gas supply expansion aligns with Nigeria's Gas Master Plan, which aims to transition the economy toward gas-based industrialization and power generation. Nigeria holds Africa's largest natural gas reserves at 209 trillion cubic feet, yet chronic infrastructure deficits and pipeline vandalism have prevented full monetization of these resources.
Nigeria is simultaneously pursuing international trade expansion through a proposed Africa-Caribbean economic corridor. Preparations are advancing for the 2026 Afric-Caribbean Investment Summit scheduled for Abuja, with officials targeting access to a combined $40 trillion market spanning Africa, the Caribbean and the Americas. The initiative seeks to leverage historical and cultural ties between African nations and Caribbean states to create new trade flows, though specific mechanisms for market integration remain under development.
The trade corridor proposal reflects Nigeria's strategy to diversify export destinations beyond traditional European and Asian markets. Nigeria's total trade volume reached $96 billion in 2024, according to National Bureau of Statistics figures, with crude oil accounting for 75 percent of export earnings despite government efforts to broaden the export base.
Private sector confidence indicators show mixed signals amid the policy initiatives. Business leader Aliko Dangote predicted naira appreciation to ₦1,000 per dollar during 2026, suggesting improved forex market stability. The naira currently trades at approximately ₦1,550 per dollar on the official market, having depreciated 45 percent in 2025 following the Central Bank of Nigeria's unification of exchange rate windows.
The financial technology sector registered robust performance metrics, with eTranzact Plc processing transactions valued at ₦103 trillion in 2025, according to company disclosures. The transaction volume underscores Nigeria's rapid digitalization of payments infrastructure, even as broader economic indicators remain under pressure from inflation running at 34 percent year-on-year.
Implementation timelines for the industrial policy and revenue recovery measures will determine whether Nigeria can achieve simultaneous fiscal consolidation and economic expansion. The government faces the challenge of maintaining investor confidence while addressing structural inefficiencies that have constrained growth for decades, with success likely dependent on coordination across multiple agencies and sustained political commitment to reform objectives.