The Federal Government says its Nigeria First Policy has significantly reduced the cost of locally assembled vehicles, cutting the price of one model from about N72 million to N35 million.

The Director-General of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, disclosed this during a press briefing in Abuja on the implementation of the policy and its impact on Nigeria’s automotive industry.

The event was organised by the National Automotive Design and Development Council (NADDC) in collaboration with the BPP.

Adedokun explained that the price reduction followed government’s decision to prioritise Nigerian-assembled vehicles in public procurement.

He said the BPP purchased two units after the policy was introduced, with the reduced price demonstrating the impact of increased government demand for locally produced vehicles.

Government pushes local vehicle production

According to the BPP director-general, the policy is designed to strengthen domestic manufacturing, create employment opportunities and encourage greater participation of Nigerian technicians and suppliers in the automotive value chain.

He said all federal government agencies have been directed to prioritise vehicles assembled in Nigeria where available.

Adedokun added that manufacturers offering locally assembled vehicles are also providing additional discounts for bulk purchases.

He stressed that government support would come with expectations of improved quality, innovation and reliable after-sales services.

“The era of assemblers without proper maintenance structures is over. Quality and customer support must become central to the industry,” he said.

Sanctions for non-compliant companies

Adedokun said the Nigeria First Policy has moved beyond a government announcement and is now supported by institutional structures.

He warned that companies that fail to comply with procurement guidelines could face sanctions, including possible removal from government business opportunities.

He said a stakeholder steering committee and monitoring system had been established to assess implementation across the automotive sector.

However, he acknowledged that challenges remained and said government was working to address gaps affecting the industry.

NADDC urges manufacturers to deepen local content

The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, urged vehicle assemblers to move from Semi Knocked Down (SKD) production to Completely Knocked Down (CKD) manufacturing.

He said deeper local assembly would help Nigeria develop its own automotive component industry and strengthen local supply chains.

Osanipin explained that the policy was designed to gradually grow the sector, allowing manufacturers to expand from basic assembly operations into full-scale industrial production.

He said stronger local manufacturing would also support Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) by helping companies meet rules of origin requirements.

According to him, the biggest beneficiaries of the policy may eventually be local component manufacturers rather than vehicle assemblers alone.

He noted that Nigeria has a large potential market, with approximately 15 to 16 people per vehicle, compared with about six to seven people per vehicle in South Africa.

Osanipin urged assemblers to establish nationwide after-sales networks to build consumer confidence.

Industry stakeholders welcome policy

The Chairman of the Nigerian Automobile Manufacturers Association (NAMA), Bawo Omagbitse, described the policy as a measure that reduces investment risks in Nigeria’s capital-intensive automotive sector.

He said manufacturers viewed the initiative as a platform for long-term industrial growth rather than a government favour.

Omagbitse pledged that industry operators would meet required standards and improve production capacity.

Meanwhile, the National Coordinator of the Automotive Local Component Manufacturers Association of Nigeria (ALCMAN), Anslem Ilekuba, said about 3,500 manufacturers in China had expressed interest in partnering with Nigeria’s automotive sector.

He added that local component manufacturers were developing a digital platform with traceability systems to help buyers identify genuine spare parts suppliers.