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| President Tinubu leading Federal Executive Council meeting on local procurement |
Nigeria’s federal government has banned ministries and agencies from buying foreign-made goods or services that can be produced at home. The Federal Executive Council approved this new rule on May 5, 2025 as part of President Tinubu’s “Renewed Hope Nigeria First” agenda. Under the policy, the country is put “at the center of all public procurement and business activity,” with a strong emphasis on local industry and cutting back on imports. In other words, if a product or service is available in Nigeria, government bodies must use it – imports are allowed only with a special waiver from the procurement bureau.
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| President Bola Tinubu and other officials at a Federal Executive Council meeting in Abuja. |
Under the new rule, all federal ministries, departments and agencies (MDAs) must prioritize Nigerian-made goods and services. The Bureau of Public Procurement (BPP) has been instructed to revise its guidelines so that local content is required in every contract. In practice, this means the BPP will keep a register of high-quality Nigerian suppliers and set up a local content compliance system to check every purchase. All procurement officers who were working at ministries have been brought back under BPP control to enforce the rules.
Where no Nigerian supplier exists, contracts must include plans to build domestic capacity. For example, any equipment or service bought from abroad must have clauses for technology transfer, local production or skills training in Nigeria. In short, foreign companies can still bid, but only if they help develop Nigerian industry in the process.
Key points of the new Nigeria-First procurement policy include:
Local content first: No MDA may buy foreign goods or services that are available from a Nigerian supplier, except with a written BPP waiver.
Revised procurement rules: The BPP must enforce buying Nigerian products in all government projects.
Audits and plans: All ministries must immediately audit and update their spending plans to fit the new directives.
Sanctions: Any violation can lead to cancellation of contracts and discipline for the responsible officers.
The policy will get legal backing through an executive order from the President, as directed by the Attorney General. Officials describe it as a major shift in economic strategy – likening it to an “America First” approach – that will make government spending directly benefit Nigerian workers and factories. They hope it will become a cornerstone of Nigeria’s industrialization and import-substitution agenda.
How the Ban Will Work in Practice
In practical terms, the policy requires that government money “must now work for the Nigerian people”. Before buying anything, MDAs will check the BPP’s database for a local supplier. If a Nigerian-made option is found, they must use it. If they still want the foreign option, they must show a strong reason and get a waiver from the BPP. All departments have been told to redraw their procurement schedules under these rules.
The government also made clear that breaking this rule has real consequences. Contracts awarded in violation can be canceled, and officials who violate it can face disciplinary action. In short, any waiver must be in writing, and compliance will be strictly monitored.
Officials stress that this policy will be enforced immediately. The BPP has been ordered to put its new guidelines into effect at once. The Attorney-General and Minister of Justice is already drafting the Executive Order to make the policy binding. All this will give the directive full legal weight so that the new spending rules are followed in every ministry and agency.
Reactions from Experts and Industry
Many economists and business leaders have reacted positively. They say the policy could give a big boost to local manufacturing. For example, one economic expert noted that forcing government contracts into Nigerian hands would “open up more than ₦30 trillion” of the 2025 budget to homegrown businesses – and even more if states and local governments adopt the same rule. Analysts believe this will create a large domestic market for local firms, which would raise production and jobs. They also point out the policy’s multiplier effects – such as higher employment, more stable foreign exchange, and broader economic growth.
Stakeholder voices highlight specific gains. Local refinery and auto companies, for instance, are expected to benefit. A Daily Post report quoted industry figures saying the ban will boost companies like the Dangote Refinery and Innoson Motors by giving them priority in government projects. Innoson Vehicle’s factory entrance (pictured below) symbolizes one target of the drive to use Nigerian products first.
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| Entrance to Innoson Vehicle Manufacturing (IVM) factory in Nigeria. |
Some analysts say the policy could significantly reduce Nigeria’s import bill. In late 2024, Nigeria spent about ₦16.6 trillion on imported goods in just one quarter. By buying Nigerian products instead, that foreign spending can fall. One economist noted that Nigeria actually ran a trade surplus in 2024 due to lower imports, and a strict “Nigeria First” rule could help maintain that trend. He suggested the policy would relieve pressure on the naira by cutting demand for dollars and euros.
Local business groups also spoke in favor. The Nigeria Employers Consultative Association praised the plan for boosting local industry. The Manufacturers’ Association of Nigeria and others are expected to support the move as it aligns with long-standing calls for local content in government purchases. A coalition of southern businessmen hailed the decision, calling it “the best news” and urging that it be enforced from the top down. They see it as a bold step toward making Nigeria a world power by focusing on homegrown goods.
Experts do stress that success will depend on good implementation. They warn that similar policies in the past stalled when not followed through. One economist urged that quality and competitiveness still come first: the buying process must ensure Nigeria gets good value for money, rather than simply choosing the cheapest local option. Another noted that the policy’s gains would be much higher if sub-national governments also adopted it, turning it into a national standard.
Impacts on Industry, Jobs, and Trade
In the short term, this policy will reshape how government spends money. Factories and farms across Nigeria are expected to see more sales, since ministries and agencies will be their first customers. Sectors such as cement, garments, foods (like sugar), and technology may especially benefit. (For example, local sugar producers have long complained that government still buys imported sugar; now sugar contracts will be given to Nigerian mills that meet quality and integration rules.)
Longer term, the goal is to spur industrial growth. By keeping spending on local firms, the government hopes to expand factories and create jobs. The policy specifically ties into plans to build domestic skills and production. For instance, contracts for goods not currently made in Nigeria must include plans to train local workers or build new facilities. This backward integration approach mirrors earlier plans like the Sugar Master Plan, aiming to revive sectors that can become self-sufficient. Over time, more local output could raise Nigeria’s manufacturing share of the economy.
If successful, the Nigeria-First rule could improve the country’s trade balance. Less import spending means less demand for foreign currency, helping to stabilize the naira. Authorities believe this will preserve foreign reserves and reduce inflationary pressure from imported inflation. Already, the Minister of Finance noted signs of the economy “turning the corner,” and supporters say this procurement policy adds to those reforms.
The policy also has a social promise. By focusing on locally made goods, the government is effectively betting on Nigerian workers. Business leaders say it could especially help small and medium-sized enterprises (SMEs), which employ most Nigerians. One expert pointed out that reserving contracts for local firms (as done in the USA) could accelerate SME growth and job creation in Nigeria. In theory, more jobs and higher wages would raise living standards and reduce poverty in the long run.
However, economists note some risks. In the near term, not every product can be easily found in Nigeria, and local suppliers may charge more or take longer. If not managed carefully, this could slow some projects or raise costs. Ministers acknowledge there will be “implementation challenges” as some people resist change. They have pledged to enforce the policy strictly to prevent loopholes. Analysts also warn the government to guard against complacency: the procurement process must still require quality and competence so that local firms compete on skill, not just protection.
Procurement Changes and Local Content
This policy marks a clear shift in public procurement. The BPP’s new role will be to ensure every Naira spent by the government builds Nigerian capacity. All previous rules favoring the lowest bid will be updated to favor Nigerian-made bids. The centralization of procurement officers under the BPP is meant to close gaps where a project manager in one ministry might have gone outside if left unchecked. Now those officers answer to one office enforcing national policy.
Critics of past Nigerian procurement systems argued that some contractors acted as “intermediaries,” importing foreign goods while local factories stood idle. The government says that era is over. In future, local factories and service providers will be the primary beneficiaries of government work. For sectors where no local option exists yet, the deals will be structured so that domestic industry is built up. This shows a new focus on backward integration – turning imports into locally made goods over time.
The “Nigeria-First” procurement policy is a bold step by President Tinubu’s administration to make government spending a tool for economic transformation. By legally requiring ministries to buy Nigerian, the government is using its own budget to back local industry. Proponents say this will create jobs, support factories, and cut the import bill. Early data suggest Nigeria already saw a rare trade surplus by importing less, and this policy could help keep the trend going. It also fits with other reforms like subsidy cuts and a managed foreign exchange rate, all aimed at making Nigeria more self-reliant.
The long-term success of the policy will depend on strict enforcement and the ability of Nigerian businesses to meet demand. Experts agree that if implemented well, the rule could be a game changer – raising industrial output, strengthening the naira, and boosting employment. As one analyst put it, the policy signals that “government money must now work for the Nigerian people,” not foreign companies. However, observers also warn that only careful management and transparency will turn this policy from an announcement into real growth. In any case, the Nigeria-First procurement rule has set a clear national priority: build Nigeria’s industries by buying Nigerian first.