Africa (Commonwealth Union): The Federal Government of Nigeria has entered into a groundbreaking $175 million Program for Country Partnership (PCP) agreement with the United Nations Industrial Development Organization (UNIDO). This initiative aims to strengthen Nigeria’s industrial capacity, drive technological innovation, and promote sustainable economic development.
Minister of Budget and Economic Planning, Abubakar Bagudu, highlighted the strategic importance of the PCP, emphasizing that it will unlock private sector investments, enhance access to capital, and position Nigeria as a key player in global industrialization.
“The total budget allocated for the PCP from 2024 to 2028 stands at $174.585 million, supported by a well-defined funding strategy,” Bagudu stated. “The Nigerian government has pledged a counterpart contribution of 14.3%, amounting to $24.965 million, while UNIDO will mobilize the remaining 85.7%, totaling $149.19 million.”
The initiative is designed to attract significant private sector participation by expanding financial access and fostering a conducive environment for industrial investments. “The private sector, which is well represented here, should seize this opportunity to secure international capital and scale up production,” Bagudu noted.
According to the minister, the PCP aligns with Nigeria’s Vision 2050, the national development plan, and President Bola Tinubu’s ‘Renewed Hope Agenda.’ He underscored that the initiative would complement recent economic reforms aimed at making Nigeria more competitive. These include the removal of oil subsidies, the adoption of a market-driven foreign exchange system, and the launch of a consumer credit program.
“With a population exceeding 200 million, consumer credit is vital in stimulating demand for locally manufactured goods,” Bagudu explained. “By ensuring that manufacturers both large and small—can focus on operational efficiency rather than market penetration, this initiative will drive industrial growth.”
Additionally, Nigeria is prioritizing compressed natural gas (CNG) and liquefied natural gas (LNG) as cost-effective and reliable alternatives to petrol and diesel. Bagudu stressed that transitioning to these energy sources would lower production costs and improve the competitiveness of Nigeria’s manufacturing sector.
Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), described the PCP as a pivotal tool in executing the industrial component of the national development plan. He noted that over 1,000 employees from manufacturing firms in industrial zones are already benefiting from the capacity-building aspect of the program.
Meshioye reaffirmed the commitment of Nigeria’s private sector to supporting the initiative, ensuring that its core objectives are successfully implemented for long-term industrial sustainability.
