In a landmark decision aimed at strengthening Nigeria’s domestic economy and promoting local content, the Federal Executive Council (FEC), presided over by President Bola Tinubu, on Monday 5th of May 2025 approved a sweeping new policy framework tagged the “Renewed Hope Nigeria First Policy”. This policy aims at making government investment directly benefit our people and industries by changing how we spend, how we procure, and how we build our economy.
Understanding the Nigeria First Policy
The Nigeria First policy is expected to become the cornerstone of the administration’s economic strategy, especially as the government pushes forward with its industrialization agenda and import-substitution goals.
The policy comes at a critical time as the International Monetary Fund, IMF, forecasts a gradual slowdown in Nigeria’s economic growth from 3.4% in 2024 to 3.0% in 2025 and further declining to 2.7% in 2026. This downward trajectory underscores the urgent need for structural economic reforms to sustain growth momentum. The Nigeria First policy aims to counteract these declining growth projections by stimulating domestic production and reducing import dependency.
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Key Resolutions and Implementation Strategies
- Revision and Enforcement of Procurement Guidelines: The Bureau of Public Procurement (BPP) is to revise and enforce procurement rules that prioritize Nigerian-made goods and homegrown solutions across all Ministries, Departments, and Agencies (MDAs).
- Mandatory Waivers for Foreign Procurements: MDAs are prohibited from procuring foreign goods or services that are available locally without obtaining a written waiver from the BPP. This measure is intended to curb unnecessary foreign expenditures and stimulate domestic production.
- Inclusion of Technology Transfer Provisions: Where foreign contracts are unavoidable, they must include provisions for technology transfer, local production, or capacity development in Nigeria.
Implications for Stakeholders
- For Government Agencies: MDAs must audit existing procurement plans and submit revised versions aligned with the new policy directives. This requires a thorough assessment of current procurement practices and a shift towards sourcing from local suppliers.
- For Local Industries: The policy presents an opportunity for Nigerian manufacturers and service providers to increase their participation in government contracts. By meeting quality and capacity standards, local businesses can position themselves as preferred suppliers.
- For Foreign Contractors: International firms seeking government contracts in Nigeria must now incorporate strategies for technology transfer and local capacity development into their proposals. This approach ensures that foreign engagements contribute to the growth of Nigeria's domestic industries.
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Conclusion
The Nigeria First policy comes amid economic reforms being pushed by the Tinubu administration, including subsidy removals, a new foreign exchange regime, and efforts to restore investor confidence. By making local content central to government spending, the administration hopes to drive job creation, industrial growth, and sustainable economic development.
While the policy will likely face implementation challenges and resistance from entrenched procurement interests, officials say the administration is determined to enforce compliance at all levels.
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