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, in a move aimed at boosting domestic manufacturing, creating jobs and reducing dependence on imported vehicles.
The directive requires government agencies seeking to purchase foreign-assembled vehicles to demonstrate that no suitable locally assembled alternative is available and obtain direct presidential approval before proceeding.
Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Joseph Osanipin, announced the policy position in Abuja, urging local vehicle assemblers to increase production, improve quality and strengthen after-sales services to meet government demand.
FG Tightens Local Vehicle Procurement Rules
Under the policy, government vehicle procurement will be restricted to licensed domestic assembly plants and their authorised retailers, with compliance requirements designed to ensure that public spending supports Nigeria’s automotive industry.
Osanipin said every vehicle supplied to the government must have a traceable Vehicle Identification Number (VIN), verified through the NADDC, to establish its origin and ensure compliance with the local assembly requirements.
He warned that supplies made outside licensed local assembly channels would attract regulatory sanctions, including blacklisting and licence revocation.
The government’s position places greater responsibility on local manufacturers to demonstrate that they can meet public-sector demand while maintaining acceptable standards of quality, reliability and service delivery.
Nigeria’s Vehicle Assembly Plants Have Capacity for 370,520 Units
Osanipin said Nigeria’s vehicle assembly plants have a combined annual production capacity of 370,520 vehicles, highlighting the potential of the domestic automotive industry to supply a larger share of the country’s vehicle requirements.
He urged manufacturers to take advantage of the policy by expanding production, improving product standards and investing in after-sales services.
The government expects increased demand for locally assembled vehicles to support employment, encourage domestic component manufacturing and reduce spending on imported vehicles.
However, the extent to which the policy will translate into higher production will depend on manufacturers’ ability to meet demand, maintain competitive prices and provide reliable maintenance and spare-parts support.
BPP Warns Assemblers Against Poor Quality
The Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, urged local vehicle assemblers to invest in modern technology, quality control and maintenance services to strengthen confidence in locally assembled vehicles.
He warned that poor product quality, inadequate after-sales support and violations of procurement requirements could attract sanctions.
The emphasis on quality and servicing reflects the government’s expectation that local manufacturers must deliver vehicles that meet the operational needs of public institutions, rather than relying solely on the protection offered by the procurement policy.
For government agencies, the new requirements also make verification of vehicle origin and compliance with procurement rules central to the purchasing process.
Nigeria First Policy Targets Industrial Growth
The vehicle procurement directive forms part of the Federal Government’s broader effort to prioritise locally made goods and services in public procurement, using government spending to stimulate domestic production and strengthen Nigerian businesses.
By directing public-sector demand towards licensed local assemblers, the government aims to create a more predictable market for manufacturers and encourage investment in vehicle assembly and local component production.
The policy’s success will ultimately depend on effective enforcement, adequate production capacity, competitive pricing and consistent quality across the domestic automotive sector.
If implemented effectively, the directive could create new opportunities for local manufacturers and workers while supporting the government’s drive to reduce import dependence and build a more competitive automotive industry.
