How 'Nigeria First Procurement Policy' will boost local manufacturing, forex

Worried by the low patronage and dwindling manufacturing of made-in-Nigeria goods, the federal government recently launched 'Nigeria Fi...

Worried by the low patronage and dwindling manufacturing of made-in-Nigeria goods, the federal government recently launched 'Nigeria First' Procurement Policy, to re-emphasise on the need to promote local content and industrialisation by putting Nigeria first in all government dealings, particularly procurements.

The Federal Executive Council which launched the policy on May 5, 2025, restated President Bola Tinubu's commitment to ensure that Nigerian made products are considered first in all the procurement process, except where such products and services are not readily available in the country.

Daily Trust gathered that the 'Nigeria First' policy put emphasis on prioritizing local industries and goods, often through restrictions on imports of items that can be produced domestically.

Already, most economists and manufacturers in the country are commending the policy, saying it aims at stimulating local production, creating jobs, and reducing reliance on foreign products.

During the just concluded Nigeria Oil and Gas Energy Week (NOG) in Abuja, operators of the International Oil Companies (IOCs) and the indigenous operators also expressed commitment to the policy.

Economists and manufacturers told Daily Trust that the 'Nigeria First' Procurement Policy will certainly impact positively on the economy of the country, strengthen forex trading and boost the capacity of the local manufacturers.

The 'Nigeria First' Procurement Policy, which will leverage on the successes of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010 will boost the capacity and capability of the local manufacturers.

Daily Trust findings showed that 15 years after the enactment of NOGICD Act, Nigeria now retains 56 percent of its oil and gas industry expenditure as at first quarter of 2025, a major leap from just five percent in 2010, according to experts.

Also, several equipment used in the oil and gas production are now producing in-country, a situation that the 'Nigeria's First' Procurement Policy will come to consolidate.

Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Ogbe, while speaking during the last Nigerian Content Opportunity Fair, confirmed the achievements recorded in Nigerian Content over the years , including; facilitating over 16 million training man-hours (with over 7,000 trainees), 40% of marine vessels, 250,000 metric tonnes of fabrication capacity, US$350 million funding to indigenous oil and gas companies, pipe coating, and in-country integration of Floating Production Storage and Offloading (FPSO) vessel.

Already, NCDMB has said that it will commission a Baseline Study to ascertain and verify the available capacity of Nigerian service providers, in order to ensure that the 'Nigeria First' policy translates from paper to tangible progress.

Ogbe stated that the board is developing a Nigeria First Procurement policy in order to incorporate the Nigeria First policy into the internal processes and systems of the board.

He said: 'The policy will be considered for reviewing and approving Nigeria Content Plans, Nigeria Content Compliance Certifications, and so on. The Board will also commission a Baseline Study to ascertain and verify the available capacity of Nigerian service providers.

'Similarly, we will also commission a Baseline Study of the consumables and other goods that are used in the oil and gas industry. The study will also identify Nigerian companies that produce these goods and confirm their capacities in order to benefit from the Nigeria First policy of the federal government.' He said.

He also emphasized that the 'Nigeria First' policy, underscores a commitment to prioritizing local goods, services, and capabilities across the oil and gas value chain. Building on the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.

He stated that with President Bola Tinubu's Executive Orders, the policy mandates local procurement unless foreign alternatives are justified, aiming to retain economic value, create jobs, and drive technological innovation.

The Policy'll Strengthen Forex Trading, Boost GDP - Experts Speak

A Professor of Corporate, Oil and Gas and Labour Law from the Niger Delta University (NDU), Prof. Pereowei Subai, described the policy as a good one, as government is trying to prioritize local goods and services in their procurement plans.

Prof. Subai, who had previously carried out projects on local content and resource nationalism law as they pertain to third world countries, urged the Nigerian government to first look at the international implication of how the policy will affect African Continental Free Trade Agreement, because Nigeria has several obligations locally and internationally.

He said: 'The policy is very good because it's a procurement policy, it's not a policy that applies to everybody, what the government is trying to say is that companies should prioritize local goods and services in their procurements, if the government wants to buy cars, for example for members of the State House of Assembly, they prioritize cars that are produced in Nigeria over cars that are produced outside, naturally that will inspire local manufacturers to rise up to the occasion.'

Also speaking on the policy, the Chairman, Yenagoa Chamber of Commerce, Industry, Mines and Agriculture (YECCIMA), Mr. Warmate Idikio, said the 'Nigeria First' Policy carries immense promises, with potential boosts in GDP, jobs, and local industry strength.

He however stated that deep systemic challenges remain a major obstacle, calling for quality controls, enforcement, coverage, and bureaucratic inertia.

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