The Federal Government has directed all ministries, departments and agencies (MDAs) to procure vehicles exclusively from licensed local assemblers or their authorised dealers as part of efforts to strengthen Nigeria’s domestic automotive industry.
Under the directive, government institutions will no longer be permitted to purchase foreign-assembled vehicles unless they can demonstrate that no suitable locally assembled alternative is available and obtain explicit approval from the President.
The policy forms part of the Federal Government’s Nigeria First Policy, which seeks to prioritise locally manufactured goods, create employment opportunities, reduce dependence on imports and stimulate industrial growth.
Speaking in Abuja, the Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Joseph Osanipin, said Nigeria’s vehicle assembly plants have a combined annual production capacity of 370,520 units.
He explained that directing government procurement towards domestic assemblers would help increase production, encourage local component manufacturing and improve the competitiveness of the country’s automotive sector.
Osanipin also stated that all vehicles supplied to government agencies must have traceable Vehicle Identification Numbers (VINs), which would be verified through the NADDC to ensure compliance with the new requirements.
He warned that suppliers who bypass licensed local assembly operations could face regulatory penalties, including blacklisting and the revocation of their licences.
The Bureau of Public Procurement (BPP) has also called on vehicle assemblers to improve product quality, invest in modern technology and strengthen after-sales support to meet the needs of government institutions.
BPP Director-General Adebowale Adedokun stressed the importance of maintaining high manufacturing standards and providing reliable maintenance services, noting that compliance with the policy would be essential for suppliers seeking government contracts.
The government’s directive is expected to encourage greater utilisation of Nigeria’s existing vehicle assembly capacity while creating opportunities for investment, job creation and the development of local automotive supply chains.
However, the policy’s implementation will depend on the ability of domestic assemblers to meet government demand in terms of vehicle availability, quality, pricing and after-sales service.
FG Orders Ministries, Agencies to Buy Vehicles From Local Assemblers
