The Nigerian federal government has issued a directive to ministries, departments and agencies (MDAs) to procure all vehicles from licensed local assemblers or their authorised retailers. This move aims to boost domestic production, create jobs and reduce imports. The policy, known as Nigeria First, seeks to promote the growth of the automotive industry in the country.
According to Oluwemimo Joseph Osanipin, director-general of the National Automotive Design and Development Council (NADDC), Nigeria's assembly plants have an annual capacity of 370,520 vehicles. He emphasised that prioritising local manufacturers in government procurement would support domestic component production and improve the overall quality of vehicles.
Under the new policy, government agencies are required to source vehicles exclusively from local assemblers or their authorised retailers. Foreign-assembled vehicles can only be procured if there is no domestic alternative available and with direct presidential clearance. This move is expected to increase demand for locally assembled vehicles and stimulate growth in the industry.
The NADDC has also introduced a measure to ensure compliance with the policy. All vehicles supplied to the government must carry a traceable Vehicle Identification Number (VIN) verified through the NADDC. Any supply outside licensed local assembly lines will attract immediate regulatory sanctions, including blacklisting and licence revocation.
The Bureau of Public Procurement (BPP) has warned local assemblers that poor quality, inadequate after-sales support and policy violations would attract sanctions. BPP Director-General Adebowale Adedokun urged manufacturers to invest in technology, quality control and maintenance services as the government seeks to build a competitive automotive industry.
The Nigeria First Policy is a fundamental shift in the government's approach to promoting local industries. The policy aims to create a favourable business environment for local manufacturers and encourage them to improve their products and services. By prioritising local procurement, the government hopes to stimulate economic growth and reduce reliance on imported goods.
Industry stakeholders have welcomed the policy, citing its potential to create jobs, stimulate economic growth and promote technological innovation. The policy is also expected to increase the competitiveness of locally assembled vehicles and improve the overall quality of vehicles on Nigerian roads.
Key points
- The Nigerian government has directed MDAs to procure vehicles from local assemblers to boost domestic production and create jobs.
- The policy requires government agencies to source vehicles exclusively from local assemblers or their authorised retailers.
- The NADDC will verify the Vehicle Identification Numbers of all vehicles supplied to the government to ensure compliance with the policy.
