Nigeria’s automotive sector has responded positively to the Federal Government’s newly launched ‘Nigeria First’ policy, with key players in the industry calling it a pivotal moment for local vehicle assembly and economic growth.
The policy, announced on May 5, 2025, mandates that all federal ministries, departments, and agencies (MDAs) prioritize Nigerian-made goods and services in public procurement. This initiative, aimed at boosting the local economy, has been widely praised by industry stakeholders, including the National Automotive Design and Development Council (NADDC), Innoson Vehicle Manufacturers (IVM), and Dana Motors.
The policy has raised expectations of increased demand for locally assembled vehicles, marking a significant shift from previous policies. “This decision is a game changer,” said NADDC Director-General Oluwemimo Osanipin. He added that the NADDC has already updated its list of local manufacturers and their products, which will be submitted to the Bureau of Public Procurement (BPP) for implementation.
“This is the type of strategic move that will drive local vehicle patronage,” Osanipin said. He highlighted that the previous Executive Orders 3 and 5 only required 40% of procured goods to be locally produced, a far cry from the 100% now mandated under the ‘Nigeria First’ policy.
The policy has stirred enthusiasm among manufacturers. Chief Innocent Chukwuma, Chairman of Innoson Vehicle Manufacturers, hailed the initiative as one of the most impactful decisions by the Tinubu administration. “If fully implemented, it will give a massive boost to local manufacturers,” Chukwuma said. He pointed to Innoson’s Nnewi plant, which produces a range of vehicles including SUVs, buses, and fire trucks, noting that they were already leading in Compressed Natural Gas (CNG) vehicle production.
Chukwuma also revealed plans for a new multi-billion naira IVM plant in Nnewi dedicated to CNG and electric vehicles, which is nearing completion. “We were producing CNG vehicles two years before the policy came into play,” he added proudly.
Dana Motors also praised the policy, with Managing Director Jacky Hathiramani calling it a forward-thinking move. Dana’s Isolo-based plant, which produces eco-friendly vehicles including electric cars and CNG-powered buses, stands to benefit significantly from the new regulations.
Hathiramani emphasised the policy’s potential to stimulate the local supply chain and provide incentives for Original Equipment Manufacturers (OEMs) and conversion centers.
The Nigeria Customs Service (NCS) is also aligning with the policy. The Comptroller-General of Customs, Adewale Adeniyi, announced that the agency is initiating the purchase of locally assembled vehicles. Speaking at an event where various auto manufacturers showcased their products, Adeniyi praised the policy as transformative for the sector.
“We are committed to supporting the local auto industry,” Adeniyi said. “Seeing Nigerian-made vehicles on display gives me great joy, and I’m proud to be part of a government initiative that strengthens our industrial economy.”
NCS officials expressed satisfaction with the quality of the vehicles presented, which were produced by members of the Nigeria Automotive Manufacturers Association (NAMA), including Mikano Motors and Stallion Motors.
Adeniyi’s support for the local auto industry was echoed by key figures from the sector, including Ilekuba Anslem, CEO of Cedric Masters Group, and Oluwatobi Ajayi, CEO of Nord Automobile Limited. Both praised Adeniyi’s continued advocacy for locally made vehicles even before the policy’s announcement.
Ajayi assured the Customs Service that his company, Nord Automobile, would maintain robust after-sales services for its vehicles, further cementing confidence in the policy’s longevity and sustainability.
With such widespread support and optimism, the ‘Nigeria First’ initiative is set to transform the nation’s automotive landscape, creating jobs, stimulating growth, and positioning the country as a key player in Africa’s auto manufacturing sector.
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