…to boost industrialization by prioritising the use of locally manufactured goods and services in all government procurements.
…reduce importation
… challenges
The Federal Executive Council (FEC) has approved a Nigeria First economic policy targeted at prioritising the use of locally manufactured goods and services in all government procurements.
Nigeria’s Minister of Information and National Orientation, Mohammed Idris, said this on Monday after the FEC meeting in Abuja.
Mohammed said the policy would soon be backed by an executive order.
“This policy means Nigeria comes first in all procurement processes; no foreign goods or devices that are already being produced locally will be procured without a clear and justified reason,” the minister said while briefing correspondents at the State House.
“Now this seeks to foster a new business culture that will be bold, confident, but also very, very Nigerian. It aims at making the government invest in our people and our industries by changing how the government spends money, how we procure, and how we also build our economy,” the minister added.
“Going forward, Nigerian industry will take precedence in all procurement processes. Where local supply falls short, contracts will be structured to build capacity domestically. Contractors will no longer serve as intermediaries sourcing foreign goods where local factories die.”
According to him, the policy aligns with President Tinubu’s objective of driving industrialisation, insulating the economy from global disruptions, and boosting local production in the country.
FEC directed the Bureau of Public Procurement (BPP) to revise and enforce fresh guidelines to favour local manufacturers and service providers.
He said, “The BPP has been immediately directed to revise and enforce procurement guidelines to prioritize locally made goods and homegrown solutions. It has also been directed to create what is called a local content compliance framework for all government procurements.”
“Number three, the BPP has also been directed to maintain a register of high-quality Nigerian manufacturers and service providers regularly engaged by the Federal Government. Number four, the BPP, has also been directed to deploy all procurement officers from the MDAs; all the procurement officers posted to MDAs will be reverted to the Bureau of Public Procurement as a line agency without jeopardizing the possibility of efficiency,” the minister added.
Analysts have said that the policy is good, but its implications are multifaceted
Its Positive Implications include Increased patronage of locally made goods can boost economic growth by supporting local industries and creating jobs.
It will reduced importation by promoting local production, Nigeria can reduce its reliance on imported goods, conserving foreign exchange and improving trade balances. The policy can stimulate industrial development by encouraging investment in local manufacturing, technology, and innovation ¹.
It however has its challenges, some of which are quality concerns. Locally made goods are often perceived as inferior in quality compared to foreign products, which can hinder consumer adoption.
Nigerian consumers often prefer foreign goods due to perceived higher quality, brand reputation, and status symbol associated with imported products.
Historically, locally made goods have experienced low patronage, affecting economic growth and industrial development ² ³.
These, however, could be solved through quality improvement Enhancing product quality and standards can increase consumer confidence in locally made goods.
Effective marketing and promotion strategies can change consumer perceptions and behaviors, driving demand for local products.
Government incentives, tax breaks, and subsidies can encourage local production, improve competitiveness, and stimulate economic growth.
