The Federal Government has announced the disbursement of N140.8 billion to businesses across Nigeria under its intervention programmes aimed at strengthening local industries, supporting small businesses and creating employment opportunities.

The funds were released to 104 manufacturing companies and 15,018 micro, small and medium enterprises (MSMEs) through different components of the government’s N200 billion intervention package.

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, the government has completed the disbursement of the N75 billion Manufacturing Sector Fund to 104 manufacturing businesses. Another N65.8 billion has also been released to 15,018 businesses under the MSME Intervention Fund as of the first quarter of 2026.

The intervention is being managed by the Bank of Industry (BoI) as part of efforts to improve access to finance for businesses, increase local production and strengthen Nigeria’s industrial capacity.

Oduwole explained that the funding initiative was designed to address some of the major challenges facing businesses, particularly limited access to affordable financing for expansion and production.

She said the government recognised the importance of manufacturers and small businesses to the country’s economic development.

According to her, supporting these enterprises would help increase domestic production, strengthen supply chains and provide more employment opportunities for Nigerians.

The N200 billion intervention package consists of three major programmes. They include the N50 billion Presidential Conditional Grant Scheme for nano businesses, the N75 billion Federal Government MSME Intervention Fund and the N75 billion Federal Government Manufacturing Sector Fund.

While the Presidential Conditional Grant Scheme targets the smallest businesses, the MSME Intervention Fund provides financial support to micro, small and medium-sized enterprises seeking to sustain or expand their operations.

The Manufacturing Sector Fund, on the other hand, focuses on businesses involved in industrial production.

It is intended to help manufacturers address financial constraints associated with acquiring machinery, purchasing raw materials and expanding production facilities.

With the latest figures, the government has now fully exhausted the N75 billion allocated to the Manufacturing Sector Fund.

The MSME Intervention Fund has also recorded a disbursement of N65.8 billion, leaving N9.2 billion of its original allocation yet to be disbursed as of the reported period.

Combined, the two programmes have delivered N140.8 billion to 15,122 manufacturing and MSME beneficiaries.

However, the minister maintained that the success of the intervention should not be judged solely by the amount of money released to businesses.

She argued that the real value of the programme would become evident through increased production, business expansion, improved productivity and better living conditions for Nigerians.

Oduwole acknowledged that access to finance remained one of the biggest obstacles confronting manufacturers in the country.

Many businesses require substantial capital to purchase modern equipment, obtain raw materials, improve production processes and increase their capacity to meet market demand.

She explained that addressing these challenges was necessary to build a stronger manufacturing sector and reduce the country’s dependence on imported products.

The minister further stressed that Nigeria’s economic transformation would require a combination of fiscal discipline, monetary stability and policies that encourage domestic production.

She said the government was working to eliminate obstacles affecting investment, manufacturing and trade while creating conditions that would enable businesses to compete effectively.

Oduwole also highlighted recent developments in different areas of the manufacturing industry, pointing to improvements recorded in cement production, vehicle assembly and cassava starch processing.

According to her, cement manufacturing recorded an 11.53 per cent growth in the first quarter of 2026. Motor vehicle assembly also expanded by 5.44 per cent during the same period.

She further disclosed that vehicle assembly recorded a 40.6 per cent increase in 2025, while cassava starch production experienced a significant growth of 474.74 per cent.

The minister said these developments demonstrated the opportunities available in Nigeria’s industrial sector, particularly in areas where locally available raw materials could be converted into finished products for domestic and international markets.

Speaking on the importance of expanding local production, Oduwole said the processing of agricultural products could provide additional support for manufacturers while creating new opportunities across different industries.

“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.

She explained that investments in cassava processing could help connect farmers with industrial manufacturers, creating a stronger relationship between agriculture and manufacturing.

Industrial starch, for instance, is used in different manufacturing processes.

Increasing local production could therefore provide an alternative to imported supplies and create additional demand for cassava produced by Nigerian farmers.

Similarly, the expansion of vehicle assembly could support the development of local supply chains and create employment for skilled and unskilled workers.

The sector also provides opportunities for engineers, technicians, mechanics and businesses involved in the supply of automotive components.

Beyond domestic production, the minister identified the African Continental Free Trade Area (AfCFTA) as another major opportunity for Nigerian businesses.

She noted that intra-African trade had increased by 21 per cent, highlighting the potential for Nigerian manufacturers and exporters to access markets across the continent.

The agreement is designed to encourage trade among African countries by reducing trade barriers and creating a wider market for goods and services produced within the continent.

Oduwole said Nigeria must position its industries to benefit from these opportunities by improving production capacity, product quality and competitiveness.

In a related development, President Bola Ahmed Tinubu had earlier approved free CAC registration for over 250,000 MSME businesses in the country