Federal Government has directed all ministries, departments and agencies (MDAs) to purchase vehicles exclusively from licensed local assemblers or their authorised retailers, warning that violations of the directive will attract regulatory sanctions.
Gatekeepers News reports that the Director-General of National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, announced the directive in Abuja on Friday during a joint press briefing with his counterpart at the Bureau of Public Procurement (BPP), Adebowale Adedokun.
Osanipin said the directive was part of the Federal Government’s efforts to enforce the Nigeria First Policy, which prioritises locally produced goods and services in public procurement.
“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 government agencies would be required to obtain presidential approval before purchasing foreign-assembled vehicles, except where they could establish that no suitable domestic alternative was available.
“Every vehicle supplied to the government must carry a traceable Vehicle Identification Number (VIN) verified through the NADDC,” Osanipin said.
He warned that suppliers operating outside approved local assembly arrangements would face sanctions, including blacklisting and revocation of licences.
“Any supply outside licensed local assembly lines will attract immediate regulatory sanctions, including blacklisting and licence revocation,” he added.
The NADDC director-general 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 production.
He also urged local assemblers to manufacture affordable vehicles to meet the needs of ordinary Nigerians, rather than concentrating exclusively on expensive models.
“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 further called on manufacturers to expand local spare-parts production, noting that the demand for automotive components and maintenance services could provide additional opportunities for Nigerian businesses.
“The major beneficiary of the policy will be the local content manufacturers. We spend more on spare parts than even procurement of vehicles,” he said.
Speaking at the briefing, Adedokun said the Federal Executive Council had designated the BPP to establish standards and provide 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 industry, particularly concerns about the availability of a reliable market for locally assembled vehicles and automotive 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.
He added that the policy was expected to encourage industrialisation, generate employment for technicians and other skilled workers, and position Nigeria as a manufacturing hub for the Economic Community of West African States (ECOWAS) and the wider African market.
The BPP chief also warned that assemblers who violated the prescribed requirements would face sanctions, including debarment in line with applicable procurement rules.
“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 said the bureau would strengthen monitoring and evaluation to ensure that local assemblers improved their production standards, innovation and technology while meeting government requirements.
The Nigeria First Policy was approved by the Federal Executive Council in May 2025 to promote locally made goods and services through government procurement. The automotive directive forms part of efforts to strengthen domestic industries, reduce dependence on imports and increase local participation in public spending.
