The Federal Government has directed all ministries, departments and agencies (MDAs) to procure vehicles exclusively from licensed local assemblers or their authorised retailers under the “Nigeria First” policy, warning that violations will attract sanctions.
The Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, announced the directive in Abuja on Friday during a joint press briefing with the Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun.
Osanipin said government agencies must obtain direct presidential approval before purchasing foreign-assembled vehicles.
“We are fundamentally shifting the Nigeria First Policy. All vehicles procured by ministries, departments and agencies, including project utility vehicles, must be sourced exclusively from licensed local assemblers or their authorised retailers,” he said.
He explained that an MDA would only be permitted to procure a foreign-assembled vehicle if it could demonstrate that no suitable domestic alternative was available and secure presidential approval.
“Every vehicle supplied to the government must carry a traceable Vehicle Identification Number (VIN) verified through the NADDC,” Osanipin said.
“Any supply outside licensed local assembly lines will attract immediate regulatory sanctions, including blacklisting and licence revocation.”
The NADDC chief said Nigeria’s vehicle assembly plants had an annual production capacity of 370,520 vehicles, adding that prioritising locally assembled vehicles in government procurement would create jobs, reduce imports and strengthen domestic component manufacturing.
He urged vehicle assemblers to take advantage of the policy by producing affordable vehicles for the wider Nigerian market.
“There are vehicles that are for high-end people; continue to produce them, but let’s take advantage of the over 250 million Nigerians who need mobility at a very reasonable cost,” he said.
Osanipin also called on local manufacturers to increase the production of spare parts, noting that demand for components continued long after vehicles were purchased.
“The major beneficiary of the policy will be the local content manufacturers. We spend more on spare parts than even procurement of vehicles,” he added.
He said increased government purchases of locally assembled vehicles would also generate business for domestic maintenance and servicing providers throughout the vehicles’ lifespan.
BPP warns assemblers over quality, maintenance
Adedokun said the Federal Executive Council had designated the BPP as the agency responsible for setting procurement standards across sectors and providing the institutional framework for implementing the Nigeria First policy.
He said the bureau had consulted local vehicle assemblers and other stakeholders to understand the challenges facing the automotive industry, particularly concerns about whether the government would provide a reliable market for locally manufactured vehicles and components.
“We undertook what is usually not the norm, stakeholder consultation with the local assemblers. We understood their problems. Their biggest fear was market,” Adedokun said.
“Their biggest fear was that even if we continue to produce, will Nigeria patronise us, including those in the spare parts sector?”
He said Nigerian companies were producing spare parts that met quality requirements and were adapted to the country’s operating conditions and needs.
According to Adedokun, the policy would promote industrialisation, create jobs, provide employment for technicians and other skilled workers, and position Nigeria as a manufacturing hub serving the Economic Community of West African States (ECOWAS) and the wider African market.
He said the BPP would continue engaging manufacturers to ensure compliance with required standards, warning that assemblers who violated the policy would face sanctions.
“We have a mechanism called debarment; any assembler that violates this principle would be sanctioned in line with the provisions of the circular and government external guidelines,” he said.
Adedokun added that the bureau was establishing a robust monitoring and evaluation system to encourage manufacturers to improve their products, innovation and technology.
“We will ensure that all federal government entities patronise made-in-Nigeria vehicles,” he stated.
The Federal Executive Council approved the Nigeria First policy in May 2025 to prioritise locally produced goods and services in government procurement.
