By ADE ADESOKAN

The Federal Executive Council, FEC, has approved the “Nigeria First” economic policy designed to prioritise locally manufactured goods and services across all government procurement processes. According to Mohammed Idris, Minister of Information and National Orientation, this landmark policy will soon be reinforced by an executive order. Speaking after the FEC meeting in Abuja, Idris emphasised the government’s commitment to putting Nigeria at the forefront of procurement decisions.

“This policy ensures Nigeria comes first in all procurement processes. No foreign goods or devices already produced locally will be procured unless there is a clear and justified reason,” he stated. At its core, the policy aims to foster a bold and confident business culture deeply rooted in Nigerian identity and production. This strategic initiative seeks to redefine government spending to invest in local industries and entrepreneurs, thereby strengthening the nation’s economic development and growth rates.

In fact, the policy comes at a critical time as the International Monetary Fund, IMF, forecasts a gradual slowdown in Nigeria’s economic growth from 3.4% in 2024 to 3.0% in 2025 and further declining to 2.7% in 2026. This downward trajectory underscores the urgent need for structural economic reforms to sustain growth momentum. The Nigeria First policy aims to counteract these declining growth projections by stimulating domestic production and reducing import dependency.

Compounding these economic challenges, Nigeria continues to grapple with climate change impacts, particularly in its agricultural sector where flooding and desertification have disrupted farming activities and threatened food security. Exchange rate volatility has further complicated the economic landscape, with the naira experiencing significant fluctuations that have increased the cost of imports and created uncertainty for businesses. Additionally, ongoing insecurity in various parts of the country has disrupted supply chains and discouraged investments in affected regions.

This comprehensive policy mandates that Nigerian industries take precedence in procurement processes and where local supply falls short, contracts will be structured to build domestic capacity. It also blocks contractors from serving merely as intermediaries for foreign goods while local factories struggle to survive.

The Bureau of Public Procurement, BPP, has been tasked with revising guidelines to favour local manufacturers and service providers and will enforce compliance through a newly established framework. To effectively enforce the Nigeria First policy and ensure its long-term success, several additional strategies could be implemented across various levels of governance and industry engagement. The National Assembly should enact a Nigeria First Procurement Act to legally mandate compliance with the policy. The law should include penalties for non-compliance, such as fines or restrictions on companies that sidestep local procurement rules. Establishment of a Local Content Tribunal would handle disputes related to procurement violations and enforce accountability.

Public and private entities receiving government funding must prove local content usage before contracts are awarded. Government tenders should include a strict local content clause requiring a percentage of goods and services to be sourced from Nigerian companies. Audit teams should be deployed to track procurement compliance across government agencies. The government could launch Buy Nigerian Campaigns to create awareness about the benefits of local products. Introducing tax rebates or discounts for companies and consumers purchasing Nigerian-made goods would further incentivise participation. Developing a certification programme where locally made products receive a government-backed quality assurance seal would boost consumer trust significantly.

Collaboration with private sector investors will be essential to expand manufacturing capacity and improve supply chains. Encouraging joint ventures between Nigerian manufacturers and foreign companies could enhance local production capabilities. Establishing low-interest loan schemes for local entrepreneurs would help them scale up their businesses. Modern enforcement mechanisms are being considered, including AI-powered procurement tracking systems to identify violations in real time. Creating an online database of verified Nigerian manufacturers would allow government agencies to source from certified local suppliers.

At the community level, local governments could be encouraged to establish business hubs to promote and support local producers. Traditional rulers and community leaders should be engaged as policy ambassadors, encouraging citizens to buy Nigerian-made goods. Tertiary institutions could include entrepreneurship training in their curriculum, fostering early adoption of locally made goods. This policy also aims to strengthen export incentives for Nigerian manufacturers to compete in international markets. Negotiating trade agreements that promote Nigerian products abroad while discouraging unnecessary imports is part of the strategy. The government is considering creating a Nigeria First Export Agency tasked with global promotion and support for Nigerian industries.

Interestingly, this policy is currently backed by an Executive Order, which is expected to be issued soon to give it full legal standing. However, there is no existing legislative law specifically enacted for this policy yet. 

Since the policy is not yet codified into law, the National Assembly is expected to play a crucial role in ensuring its long-term enforcement by passing a legislative bill that formally establishes the Nigeria First Act, ensuring its continuity beyond executive directives. Through committees on commerce, industry and procurement, lawmakers could monitor compliance and hold agencies accountable. The Executive through the National Assembly could budget and allocate funds to support local industries and ensure the policy is effectively implemented. 

Lawmakers could engage manufacturers, business owners, and consumers to refine the policy and address concerns about quality and competitiveness.“Other relevant agencies could also play key roles in enforcement, such as Standards Organisation of Nigeria (SON) to ensure that locally made goods meet quality standards, addressing concerns about product reliability. 

The National Agency for Food and Drug Administration and Control (NAFDAC) should further enhance the regulation of locally produced food, drugs and cosmetics to ensure compliance with safety standards. In addition, the Federal Inland Revenue Service (FIRS) could provide tax incentives to encourage local production and reduce reliance on imports.

In addition, the Nigerian Investment Promotion Commission (NIPC) facilitates investment in local industries and ensures foreign investors comply with local content requirements. The Ministry of Industry, Trade, and Investment continue to oversee policy implementation and ensure businesses align with the Nigeria first directive. This Nigeria’s approach follows successful models implemented by several countries across Africa and worldwide. Rwanda’s “Made in Rwanda” policy, launched in 2015, has significantly reduced the country’s trade deficit by promoting local production of goods previously imported.

The policy helped Rwanda grow its domestic industries, particularly in textiles, construction materials, and light manufacturing, contributing to an average annual GDP growth of over 7% before the pandemic. South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) policy, while focusing on racial economic inclusion, has strong local content requirements that helped develop domestic industries and create employment opportunities. The policy has been credited with increasing black participation in the economy and strengthening local supply chains in strategic sectors.

Kenya’s “Buy Kenya, Build Kenya” strategy has revitalized its manufacturing sector, particularly in textiles, food processing, and pharmaceuticals. Through preferential procurement policies and tax incentives, Kenya has seen its manufacturing contribution to GDP increase, creating thousands of jobs and reducing dependency on imports.“On the global stage, South Korea’s economic miracle was built on similar protectionist policies that shielded nascent industries from foreign competition while developing domestic capacity. The country transformed from one of the poorest nations in the 1960s to a developed economy by strategically protecting key industries and mandating the use of domestic products.

China’s remarkable economic rise also leveraged similar policies, using government procurement to favor domestic companies while building capacity. This approach helped China develop world-class manufacturing capabilities in everything from consumer electronics to heavy industrial equipment, transforming it into the world’s factory. Malaysia’s “Look East Policy” focused on developing local capabilities through strategic partnerships with advanced economies, particularly Japan. This approach included preferential procurement policies for Malaysian companies, helping the country move from a commodity-based economy to a diversified industrial powerhouse in Southeast Asia.

Undoubtedly, this policy could also help mitigate the impacts of climate change by reducing carbon emissions associated with importing goods over long distances. By strengthening local production capabilities, Nigeria could potentially build greater resilience against exchange rate fluctuations, as the need for foreign currency to finance imports would decrease. Moreover, developing local industries across different regions of the country could create economic opportunities in areas affected by insecurity, potentially contributing to peace-building efforts.

“However, despite its promising potential, the policy faces several challenges. Many locally made goods suffer from quality perception issues compared to foreign alternatives. Nigerian consumers have historically favored foreign brands due to their perceived superior quality, reputation, and status symbol. Previous efforts to promote Nigerian-made products have struggled due to inconsistent quality, limited supply chains, and lack of consumer trust. This policy has the potential to reshape consumer behavior in significant ways, but its success will depend on how well local manufacturers address quality, availability and affordability.

With the government prioritizing locally produced goods, Nigerian-made products will become more visible and accessible in markets. If businesses improve their distribution networks, consumers will have more options to choose from. “Currently, many Nigerians associate foreign goods with higher quality and prestige, but sustained government efforts—such as endorsements, public campaigns, and quality control initiatives—could shift these perceptions. If local manufacturers maintain high standards, consumer trust in Nigerian products may improve substantially over time. Effective enforcement requires legislative backing, strict compliance measures, consumer incentives, industry partnerships, technological integration, grassroots involvement, and global trade expansion. If these strategies are well-implemented, Nigeria’s First policy can transform the economy, strengthen local industries and make Nigerian-made products globally competitive.

While this policy is a step toward economic self-sufficiency, consumer choices will ultimately depend on product quality, affordability, availability and trust. The government and manufacturers must work together to ensure Nigerian goods become the preferred choice—not just by policy but by genuine consumer preference. A balanced approach combining government support, private sector collaboration and public engagement is essential to transform local manufacturing into a viable, sustainable and widely accepted economic driver for Nigeria’s future, especially in the face of projected economic slowdown, climate challenges, exchange rate volatility, and security concerns.

  * Adesokan, a public affairs commentator, wrote from Lagos