The House of Representatives has urged the Federal Government to include an allocation of ₦350 million in the 2026 national budget to resuscitate moribund industries and strengthen Small and Medium-sized Enterprises (SMEs) across Nigeria.
This resolution followed the adoption of a motion presented by Hon. Akarachi Amadi, member representing Mbaitoli/Ikeduru Federal Constituency of Imo State, during plenary on Monday.
Amadi noted that many once-thriving industrial establishments across the country have collapsed or remain inactive due to erratic power supply, poor infrastructure, and high interest rates, resulting in widespread job losses and economic stagnation.
Citing data from the National Bureau of Statistics (NBS), the lawmaker revealed that Nigeria’s unemployment rate surged from 25% in 2022 to over 40% in 2025, a trend he attributed largely to the closure of manufacturing firms.
“The moribund state of local industries has led to an increase in import dependency, capital flight, and inflation. Goods that were once produced domestically are now imported at great cost to the economy,” Amadi stated.
He added that the collapse of local industries has had broader social consequences, contributing to rising insecurity, kidnapping, and other criminal activities, as unemployed youths struggle to survive.
Amadi identified several inactive industrial establishments across Nigeria’s six geopolitical zones, including:
Katsina Steel Rolling Mill (Katsina State)
National Paper Manufacturing Company (Ogun State)
Standard Shoe Industry Limited (Imo State)
Taraba Tomato Processing Company (Taraba State)
Idah Glass Company (Kogi State)
Cross River Wood Processing Plant (Cross River State)
He further cautioned that an increasing number of Nigerian manufacturers are relocating to Ghana and other neighbouring countries, where the business environment is more stable and infrastructure more reliable.
According to him, reviving defunct industries such as the Osogbo Steel Rolling Mill, Osogbo Machine Tools, and Ceramic Industry, Umuahia, will not only enhance productivity but also promote economic diversification and job creation, reducing Nigeria’s overdependence on imports.
Following the adoption of the motion, the House directed the Federal Ministry of Industry, Trade and Investment to incorporate the ₦350 million proposal into the 2026 Appropriation Bill to initiate the rehabilitation of key industrial assets nationwide.
Legal and Policy Perspective
Economists and legal experts have underscored the need for a legislative framework to ensure that industrial revival initiatives are not only budgeted but executed transparently and accountably.
Under the Fiscal Responsibility Act (2007) and Appropriation Act provisions, allocations such as the proposed ₦350 million must align with sustainable development goals and the national industrial policy.
Legal analysts note that while the motion is commendable, the National Assembly must ensure statutory oversight through its committees on Industry and Public Accounts to prevent the mismanagement of funds—a recurring problem that has undermined previous intervention programmes.
They further emphasised that the revival of defunct industries would require a public-private partnership model, strengthened by enforceable contracts and consistent regulatory frameworks to attract long-term investment.
