The ‘Nigeria First’ policy is a strategic economic initiative introduced by President Bola Ahmed Tinubu and approved by the Federal Executive Council (FEC). This policy aims to prioritize local content in government procurement and industrial development, thereby strengthening Nigeria’s domestic economy and promoting self-reliance
President Bola Tinubu was the one that proposed the Nigeria First policy; this is part of his administration’s broader economic reform agenda. This policy mandates all federal ministries, departments, and agencies to give absolute priority to Nigerian goods, services, and know-how when spending public funds.
This policy, as stated, seeks to foster a business culture that is bold, confident, and very Nigerian. Government investment must now directly benefit our people and industries by changing how we spend, procure, and build. “If there are any businesses to be done by anybody, the priority will be Nigeria first of all. If you have any local content, there is no reason for you to go outside this country to import.”
Impact on the Nigerian Economy:
● Boost to Local Industries: By mandating that government ministries, departments, and agencies (MDAs) prioritize Nigerian-made goods and services, the policy is expected to stimulate local manufacturing and production.
● Job Creation: Increased demand for local products and services is anticipated to create employment opportunities across various sectors.
● Economic Diversification: Reducing reliance on imports will encourage the development of diverse sectors within the economy, fostering resilience against external shocks.
Impact on Nigerians:
● Enhanced Employment Opportunities: The emphasis on local procurement is expected to lead to job creation, particularly in manufacturing and related industries.
● Economic Empowerment: By supporting local businesses, the policy aims to empower Nigerian entrepreneurs and reduce poverty levels.
● Skill Development: The policy includes provisions for technology transfer and capacity development, which will enhance the skill sets of Nigerian workers.
Criticisms & Concerns
Ex-vice president Atiku Abubakar has also been an outspoken critic of the policy, calling it a “tired PR stunt” and calling on President Tinubu and his administration to practice what they preach. He called out the genuineness of the policy, saying that government officials continue to indulge in foreign imports while touting local patronage.
Atiku specifically called on President Tinubu to show sincerity by replacing his foreign-made vehicles with locally manufactured ones, like those from Innoson.
Although the policy seeks to drive local content, critics say Nigeria’s industrial capacity at the moment might not be enough to respond to the demands of such a regulation. In the IT sector, for instance, there are issues with the availability of domestic companies that have the capability to provide the state-of-the-art solutions government agencies need.
The policy can result in substandard services or compel reliance on substandard local substitutes if the necessary investments in capacity building and infrastructure do not emerge.
Some economists warn that enforcing the policy without adequate preparation could lead to increased costs for consumers. If local products are more expensive or of lower quality compared to imports, consumers might bear the brunt, leading to dissatisfaction and potential resistance to the policy.
Challenges
● The policy was unveiled without a comprehensive action plan or implementation schedule.
● The transition to local sourcing by Ministries, Departments, and Agencies (MDAs) and the consequences of non-compliance are not well communicated to the public.
● Many Nigerian industries, particularly in manufacturing and technology, lack the scale, efficiency, or technical quality to meet government needs reliably.
● Public procurement demands, especially in sectors like defense, ICT, and healthcare, may exceed the current capacity of local suppliers.
● The policy does not outline financial support for local businesses to scale up or improve quality.
● SMEs and startups, who are key to local innovation, have little clarity on whether they’ll benefit from tax reliefs, grants, or low-interest loans under this initiative.
● A major point of criticism is the perceived hypocrisy of government officials who still use foreign-made goods especially luxury cars and imported software.
● Without top-down modeling of the policy (e.g., using Innoson vehicles or locally made ICT solutions), the credibility and seriousness of the campaign are weakened.
To ensure the success of the policy , the government must back it up with a definitive implementation strategy, quantifiable objectives, and stringent enforcement mechanisms to guarantee its success.
In addition to providing fiscal incentives like tax relief, grants, and low-interest loans to SMEs, it must place the highest priority on investing in indigenous industrial capacity, especially in manufacturing, ICT, and agriculture.
The application of locally produced goods is a great way through which public officials can set the example and gain the trust of the people. Open procurement practices and independent audits are paramount in thwarting corruption and politicization.
Finally, the policy should align with Nigeria’s obligations on international trade to avoid sanctions while promoting local competitiveness through the development of quality and infrastructure.
