FG, UNIDO unveil $175m partnership for economic transformation
By Seun Ibiyemi
The Federal Government and the United Nations Industrial Development Organisation (UNIDO) have signed a $175 million Programme for Country Partnership (PCP).
Speaking at the signing ceremony on Wednesday in Abuja, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, stated that the programme aims to accelerate Nigeria’s industrial development and economic transformation.
According to Bagudu, the initiative aligns with the government’s Agenda 2050, the National Development Plan, and President Bola Tinubu’s Renewed Hope Agenda.
“Through this partnership, we seek to strengthen Nigeria’s industrial capacity, foster technological innovation, and encourage sustainable growth.
“The total budget allocated for the PCP 2024-2028 stands at $174.585 million, with a clear funding strategy.
“The Nigerian government has pledged a counterpart contribution of 14.3 per cent, amounting to $24.965 million, while UNIDO will mobilise the remaining 85.7 per cent, totalling $149.19 million,” he said.
Bagudu noted that although Nigeria’s investment absorption capacity runs into hundreds of billions of dollars, the PCP would act as a catalyst for private sector participation and expand access to capital.
“Indeed, the economy has the capacity to absorb investments worth hundreds of billions of dollars. However, this collaboration will enhance our ability to attract such investments and widen opportunities.
“This is particularly beneficial for the private sector, which is well represented here, as it provides an avenue to tap into international capital markets.
“The financial framework underscores the government’s commitment to driving industrialisation while leveraging international partnerships for maximum impact,” he said.
The minister explained that the programme would boost industrial growth, create jobs, and drive economic transformation.
He added that it would also support the Federal Government’s ambitious economic reforms, which have repositioned Nigeria as a competitive economy.
He pointed to key economic reforms undertaken by the government, including the removal of fuel subsidies, the introduction of a rule-based foreign exchange system, and the launch of a consumer credit programme.
“For a country of over 200 million people, consumer credit is vital in stimulating demand for locally manufactured goods.
“This will enable manufacturers, both small and large, to focus on improving efficiency rather than struggling with market absorption challenges,” he said.
Bagudu also underscored Nigeria’s energy transition efforts, noting that the country is prioritising Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) as cost-effective alternatives to petrol and diesel.
“We are dedicated to lowering industrial production costs through more affordable and reliable energy sources.
“Our transition to CNG and LNG will enhance the competitiveness of Nigeria’s manufacturing sector,” he stated.
The President of the Manufacturers’ Association of Nigeria (MAN), Francis Meshioye, described the PCP as an essential tool for implementing the industrial component of the country’s national development plan.
According to Meshioye, over 1,000 staff members of manufacturing companies, who are experts working within industrial zones, are benefiting from the capacity-building aspect of the project.
He noted that the organised private sector and manufacturers would contribute the necessary resources to facilitate the effective domestication of the methodologies.
“I want to assure you of our willingness to respond positively and support the implementation of the key pillars of the programme,” he said.