FG orders MDAs to buy locally assembled vehicles, threatens sanctions

The Federal Government has directed all ministries, departments and agencies to purchase vehicles exclusively from licensed local assemblers or their authorised retailers, warning that violators will face sanctions.

The Director-General of the National Automotive Design and Development Council, Oluwemimo Osanipin, announced the directive in Abuja on Friday.

He said government agencies must obtain presidential approval before purchasing foreign-assembled vehicles.

Osanipin spoke during a joint press briefing with the Director-General of the Bureau of Public Procurement, Adebowale Adedokun.

He said the directive was part of efforts to implement the Federal Government’s Nigeria First policy and strengthen local vehicle manufacturing.

“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.

Osanipin explained that an agency seeking to buy a foreign-assembled vehicle would have to establish that no suitable locally assembled alternative was available and obtain direct presidential approval.

He added that all vehicles supplied to government agencies must have traceable Vehicle Identification Numbers verified by the council.

“Any supply outside licensed local assembly lines will attract immediate regulatory sanctions, including blacklisting and licence revocation,” he warned.

The NADDC chief said Nigeria’s vehicle assembly plants had an annual production capacity of 370,520 vehicles.

He said prioritising locally assembled vehicles in government procurement would create jobs, reduce imports and stimulate the production of vehicle components.

Osanipin also challenged local manufacturers to produce affordable vehicles to meet the needs of ordinary Nigerians.

“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.

He identified local spare-parts manufacturers as major beneficiaries of the policy, noting that demand for vehicle components extended beyond the initial purchase of automobiles.

“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.

According to him, increased patronage of locally assembled vehicles would also generate business for domestic maintenance and servicing providers.

Adedokun, on his part, 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 confronting the industry.

“Their biggest fear was that even if we continue to produce, will Nigeria patronise us, including those in the spare parts sector,” he said.

Adedokun said the policy was expected to promote industrialisation, create jobs for technicians and other skilled workers, and position Nigeria as a manufacturing hub for the Economic Community of West African States and the wider African market.

However, he warned that local assemblers must improve their products and comply with government standards.

“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.

He added that the bureau would introduce monitoring and evaluation measures to ensure manufacturers improved their technology, innovation and production standards.

The Federal Executive Council approved the Nigeria First policy in May 2025 to prioritise locally made goods and services in government procurement.