President Bola Ahmed Tinubu’s recent directive to government ministries, departments and agencies, the largest spenders in the economy, to cease procuring goods and services from abroad when they can be sourced locally is plausible.
Information Minister Mohammed Malagi said the Nigeria First policy aims to nurture a bold, self-assured business culture driven by the aspiration to make Nigeria the epicentre of business activities.
“If there are any businesses to be done by anybody, the priority will be Nigeria First. If you have any local content, there is no reason for you to go outside this country to import. This is in the form of an executive bill that the President will soon issue,” Malagi said.
Long years of import dependency
The nation’s weak production capacity, which means we rely heavily on imports for long, with the attendant consequence of high demand for dollars and other foreign currencies, remains a major stumbling block to the Central Bank of Nigeria’s effort to stabilise exchange rate. Nigeria continues to import significantly more than it exports.
Despite being home to an estimated 230 million people, with a wealth of mineral resources and abundant arable land suitable for growing various crops, Nigeria continues to be an import-dependent country, often importing products and services that can be produced locally.
In 2020, the country spent a staggering $55.4 billion on imports, slightly more than in 2021 when $52.1 billion was spent. In 2022, N25.59 trillion was spent on imports; in 2023, $45.9 billion; and over N30 trillion in 2024. These imported goods include agricultural products, raw materials, manufactured items, energy products, solid minerals, and petroleum-based products.
Multiple factors contribute to Nigeria’s unsustainable reliance on imports: high production costs spurred by intractable energy poverty, insecurity, inconsistent government policies, and high taxation, all of which prevent the establishment of a thriving production base.
Minister Malagi stated that the new policy seeks to shift government expenditure to support local industries and human capital development by reforming procurement procedures and fostering economic self-reliance.
“The MDAs have also been directed to immediately audit all procurement plans and submit revised versions per these directives. Breaches will attract sanctions, including the cancellation of procurement processes by such MDAs and disciplinary action against responsible officers,” Malagi said.
The government has assured that Nigerian industries will now be prioritised in procurement decisions. Plausibly, in cases where local suppliers fall short, contracts will be structured to build domestic capacity rather than rely on intermediaries who profit by importing foreign products at the expense of local manufacturers.
Push for local manufacturing
Malagi said that the essence of the new policy is to domesticate economic processes. It is simple. Where local manufacturers can supply goods or services, there would be no justification for MDAs to look abroad.
Despite Nigeria’s large population and rich natural resource base—resources that remain mostly untapped or, worse, are exploited illegally by foreign actors aided by local collaborators—the country still imports nearly all consumer goods. With the president’s new directive strictly enforced, MDAs must patronise local options.
As a policy targeted at prioritising the use of local goods and services, it will create more jobs and help boost the economy if properly implemented by all tiers of governments.
But while the euphoria lasts, I beg to ask what is the difference between Tinubu’s Nigeria First and Buhari’ Executive Order 5? One is six and the other is half of a dozen. Pure and simple. Was the six a success? Nope.
Fact is, Tinubu is not doing anything new as we have heard such policy pronouncements in the past including during the last administration. The only constant in all of these pronouncements is lack of implementation. One hopes PBAT summons the political will to enforce the Nigeria First policy.
Making it work
Will this new policy encourage greater patronage of local auto manufacturers like Innoson Motors, since Nigerians spend huge funds importing luxury or passenger cars? The luxury car market in Nigeria is projected to grow annually by 14.75%, potentially hitting $55 million in revenue by 2028.
Meanwhile, passenger car imports continue to drain the economy. In 2020, Nigeria imported vehicles worth N546.79 billion, N695.40 billion in 2021, N655.69 billion in 2022, a staggering N1.47 trillion in 2023, and N1.26 trillion in 2024. Such figures strain foreign exchange reserves and limit domestic job creation. We are, in effect, exporting prosperity and importing poverty.
President Tinubu’s latest directive at least signals an awareness of the need to bolster the economy. But considering the government’s lacklustre track record in patronising made-in-Nigeria products, many are sceptical. Is this just another policy destined to be ignored?
For comparison, when President Donald Trump introduced a series of controversial tariffs, he clarified that he intended to revive American manufacturing and protect jobs—a core element of his “Make America Great Again” agenda. Despite backlash and retaliatory measures from trade partners like China, Trump remained unwavering in pushing his protectionist stance.
Can Nigerians expect similar determination from Tinubu? Will his administration take steps to ensure this policy succeeds and benefits the economy?
One is reminded of the Small and Medium Enterprises Development Agency’s (SMEDAN) One Local Government One Product (OLOP) initiative—a promising idea to leverage local skills and resources to stimulate economic activity and create jobs across the country in the 774 local government areas.
The OLOP concept envisioned stakeholders identifying and nurturing a signature product or industry unique to each local government area, promoting regional strengths and cultural heritage while boosting local economies.
Despite the promise and euphoria that greeted its launch, there is no clear evidence that the OLOP programme was implemented correctly. Nearly a decade later, it has all but disappeared from public discourse.
For President Tinubu’s local content policy to make the much-deserved impact, the government must do all it takes to confront critical infrastructure gaps and regulatory hurdles. Only then can Nigerians realistically scale up production for domestic use and export.
Inherent in the nation is a vast potential in manufacturing, where Nigeria can export textiles, garments, leather goods, and footwear; agriculture, with abundant produce; and services like finance, telecommunications, and cultural exports—including the globally recognised Nollywood and Kannywood industries. These need to be fully harnessed.
Fundamentally, Tinubu’s Nigeria First entails that the Villa, national assembly, governors and all public officials will patronise Innoson, Nord and other automobile industries in Nigeria. It will entails them patronising Nigerian hospitals not rushing to France or London when they have flu. Nigeria first will require that they mark their vacation here not flying out. Ensuring the policy works will demand that the nation patronises Dangote and other local refineries not looking the way of Malta. Anything short of this will be like moving in a circle.
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