FG Mandates Local Vehicle Procurement for MDAs, Bolstering Domestic Automotive Sector
The Nigerian federal government has officially mandated that all Ministries, Departments, and Agencies (MDAs) must exclusively procure vehicles from licensed local assemblers or their authorised retailers. This directive, a cornerstone of the ‘Nigeria First Policy’ signed by President Bola Ahmed Tinubu, signals a significant shift away from the nation’s long-standing reliance on imported automotive products. The National Automotive Design and Development Council (NADDC) has finalised the implementation modalities for this policy, aiming to curb foreign exchange drain, retain local employment, and stimulate domestic manufacturing growth.
Joseph Osanipin, Director-General of the NADDC, announced the policy’s stringent enforcement in Abuja on Friday during a joint press conference with the Bureau of Public Procurement (BPP). He emphasised that any MDA seeking to procure a foreign-assembled vehicle must provide explicit proof of the absence of a domestic alternative and secure direct presidential clearance. This measure is designed to ensure that the government’s substantial vehicle acquisition budget directly supports and incentivises the local automotive industry.
The NADDC will rigorously oversee compliance, with every vehicle supplied to government entities required to possess a traceable Vehicle Identification Number (VIN) verified through the council. Non-compliance, including sourcing vehicles from outside licensed local assembly lines, will result in immediate regulatory sanctions, including blacklisting and licence revocation for offending entities. The NADDC has affirmed its readiness to collaborate seamlessly with the BPP to execute this mandate effectively.
Dr. Adedokun, Director-General of the BPP, highlighted the broader economic implications of the ‘Nigeria First Policy,’ stating that it is poised to drive industrialisation, generate substantial employment opportunities, and provide a significant boost to the national economy. This policy is expected to create a more robust and self-sufficient automotive ecosystem within Nigeria, benefiting legal professionals advising on supply chain contracts, compliance officers ensuring adherence to procurement regulations, and corporate executives involved in the automotive value chain. Investors and business leaders are also positioned to benefit from the anticipated growth and increased demand within the domestic manufacturing sector.
