Nigeria advances industrial policy through insurance reform and financing calls

Nigeria is advancing its industrial policy through insurance reforms and calls for improved financing structures. The implementation of enhanced capital requirements under the Nigeria Insurance Industry Reform Act (NIIRA) 2025 is expected to strengthen the financial capacity of local insurers. This recapitalisation aims to allow domestic companies to absorb larger industrial risks—such as factory fires, machinery breakdowns, and marine cargo losses—reducing the current heavy reliance on expensive foreign reinsurance.

Simultaneously, the Industrial Revolution Working Group (IRWG) has entered the execution phase of the National Industrial Policy. Industry stakeholders, including the Manufacturers Association of Nigeria (MAN), are advocating for cheaper long-term credit to drive production. MAN officials have criticized current lending rates of approximately 35 percent, describing them as detrimental to productivity compared to lower rates in neighboring countries. To meet industrial financing needs, which are estimated at over $35 billion annually, the group is seeking single-digit interest rates and expanded use of credit guarantees through institutions like the Bank of Industry and the Central Bank of Nigeria.