Nigeria signs $175m partnership deal with UNIDO to drive industrialisation

The federal government and the United Nations Industrial Development Organisation (UNIDO) have signed a $175 million programme for country partnership (PCP) deal.

Abubakar Bagudu, minister of budget and economic planning, said the programme would enhance Nigeria’s industrial capacity, drive technological innovation, and promote sustainable economic growth.

“The total budget earmarked for the PCP 2024-2028 amounts to 174.585 million dollars with a clear funding strategy,” Bagudu said.

“The government of Nigeria has committed a counterpart contribution of 14.3 percent amounting to 24.965 million dollars while UNIDO will mobilise the remaining 85.7 per cent, totaling 149.19 million dollars.”

Bagudu said the PCP will catalyse private sector participation, broaden access to capital, and enhance Nigeria’s ability to absorb investment.

“This is particularly for the private sector that is well represented here, to take advantage of this and broaden access to capital internationally,” he said.

“The financial framework demonstrates government’s dedication to driving industrialisation while leveraging on international partnership to maximise impact.”

The minister said the initiative aligns with the government’s agenda 2050, the national development plan, and the ‘renewed hope agenda’ of President Bola Tinubu.

He added that the programme would support the federal government’s economic reforms, “which have repositioned Nigeria as a competitive economy”.

Bagudu highlighted key economic policies, including the removal of oil subsidy, the introduction of a rule-based foreign exchange system, and the inauguration of a consumer credit programme.

“For a country of over 200 million people, consumer credit is essential to driving demand for locally manufactured goods,” he said.

“This will ensure that manufacturers, both small and big, can focus on efficiency rather than market absorption challenges.”

Bagudu said Nigeria is prioritising compressed natural gas (CNG) and liquefied natural gas (LNG) as cheaper and more reliable alternatives to petrol and diesel.

 The budget minister said this will reduce industrial production costs and make the manufacturing sector more competitive.

Francis Meshioye, president of the Manufacturers Association of Nigeria (MAN), described the PCP as a tool for implementing the industrial component of Nigeria’s national development plan.

He said over 1,000 staff of manufacturing companies operating within industrial zones are benefiting from the capacity-building component of the project.

Meshioye assured that the organised private sector and manufacturers are ready to provide the necessary resources and support for the programme’s implementation, ensuring its key pillars are successfully executed.