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Nigeria targets import cuts with new public procurement policy 

New policy could be derailed by foreign input dependency
A Nigerian flag and a banned sign on an image of a sailing cargo ship symbolizing the ban on imported goods and services
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In a sweeping policy move aimed at reducing import dependency and boosting domestic industry, Nigeria’s federal government has barred all Ministries, Departments, and Agencies (MDAs) from procuring foreign goods or services where local alternatives are available. 

Dubbed the “Nigeria First Policy,” the directive was approved at Monday’s Federal Executive Council meeting and is now a central pillar of President Bola Tinubu’s industrialisation agenda. 

The policy mandates that MDAs prioritise local suppliers in all public procurement processes, with exceptions only granted by the Bureau of Public Procurement (BPP) through formal waivers.

According to a statement issued by presidential spokesman Sunday Dare, the initiative is intended to overhaul government procurement, stimulate local production, and build national economic confidence. 

“We will make what we use and use what we make — not as a slogan, but as a national commitment,” President Tinubu declared.

Under the new directive, MDAs are required to conduct immediate procurement audits and submit revised plans aligned with local content rules. 

The statement added that non-compliance with the latest directive will attract sanctions, including contract cancellation and disciplinary action.

Additionally, the BPP has been tasked with updating procurement guidelines, creating a compliance framework, maintaining a register of qualified local suppliers, and regaining full oversight over the deployment of procurement officers across MDAs.

Officials say the policy builds on broader economic reforms including subsidy removals, infrastructure investments, and efforts to attract foreign capital. 

It also aims to break a long-standing reliance on middlemen who import goods while local factories remain underutilised. 

In sectors like sugar, for example, future import quotas will be tied to investments in local production and capacity-building.

However, despite the push to buy local, the directive may be undermined by the current structure of Nigeria’s industrial base. 

Many Nigerian manufacturers continue to rely on imported raw materials, equipment, and components. 

While the finished product may be assembled or branded locally, the inputs often come from abroad.

This means the policy, while well-intentioned, may simply shift foreign currency demand from the government to suppliers — or lead to delays and cost overruns if local firms struggle to meet the scale and standards required. 

Without deeper investment in the local supply chain and input production, the new policy risks being more symbolic than transformative.

Author

  • Amarachi Orjiude-Ndibe

    Amarachi is a finance writer with a knack for turning complex economic data into compelling stories. With over half a decade of writing experience—spanning content creation, journalism, and on-the-ground reporting—she found herself in finance by accident but stayed for the thrill of decoding numbers that shape economies. Now, she covers the policies, trends, and market shifts that drive Africa’s financial landscape, making crucial information accessible to readers across the continent. At Finance In Africa, Amarachi delivers sharp, data-driven insights tailored for bankers, investors, and finance professionals. She analyses central bank policies, fiscal reforms, and regulatory shifts, translating their impact into actionable intelligence. Her coverage spans banking performance, inflation, currency movements, capital markets, fixed income, and corporate earnings—helping industry players navigate risks and opportunities with confidence. Connect with her on LinkedIn: Amarachi Orjiude-Ndibe.

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