In a decisive move to reshape Nigeria’s economic trajectory, the Federal Executive Council (FEC) on May 5, 2025, approved the Renewed Hope Nigeria First Policy, a sweeping framework designed to place homegrown businesses and manufacturers at the center of all federal procurement and investment decisions. Presided over by President Bola Ahmed Tinubu, the Council directed the Attorney General of the Federation to draft an Executive Order that will enshrine this policy in law. By shifting government spending toward locally produced goods and services, the administration aims to stimulate job creation, boost industrial capacity, and reduce the country’s chronic dependence on imports.

A Bold Shift in Economic Strategy

Described by Information Minister Mohammed Idris as “a bold, confident, and unapologetically Nigerian approach,” the policy represents a fundamental reorientation of public‑sector spending. Under the new rules, every federal Ministry, Department, and Agency (MDA) must prioritize Nigerian‑made products and services when awarding contracts. Where foreign goods are the only viable option, agencies must secure a written waiver and incorporate technology‑transfer provisions or capacity‑building requirements into the contract.

This “Nigeria First” doctrine draws inspiration from global precedents but is tailored to Nigeria’s unique industrial landscape. It builds on existing initiatives—such as the Nigeria Industrial Revolution Plan and the Renewed Hope Agenda—to accelerate the development of manufacturing clusters, strengthen value chains, and forge deeper linkages between agriculture, processing, and export markets.

Key Components of the Nigeria First Policy

Revised Procurement Guidelines

The Bureau of Public Procurement (BPP) will update its regulations to mandate local content thresholds for all federal contracts.

A compliance unit within the BPP will audit procurement decisions and enforce sanctions for violations.

Centralized Supplier Database

The BPP will maintain a dynamic register of accredited Nigerian suppliers, segmented by sector and product quality standards.

Federal procurement officers will draw exclusively from this database when sourcing locally available goods and services.

Waiver and Technology‑Transfer Clauses

MDAs may only engage foreign suppliers if the required good or service is genuinely unavailable in Nigeria—and only after obtaining a formal waiver.

Such contracts must include clauses that mandate technology sharing, joint ventures with Nigerian firms, or on‑the‑job training for local employees.

Immediate Realignment and Enforcement

All MDAs must revise and resubmit their annual procurement plans to align with the new policy.

Breaches of the policy can lead to contract cancellations, disciplinary measures against responsible officers, and debarment from future bidding.

Revitalizing Key Sectors through Homegrown Demand

Sugar Production

Nigeria’s sugar industry has long underperformed despite abundant arable land. Local refiners produce less than 10 percent of national demand, forcing annual imports of nearly 120,000 metric tons of refined sugar. By requiring federal agencies to purchase domestically refined sugar—or, in rare cases, secure waivers accompanied by clear import‑substitution roadmaps—the policy is expected to boost local cane cultivation and refinery activity. Over time, this could generate tens of thousands of new jobs in rural areas and reduce the drain on foreign exchange reserves.

Cement and Construction Materials

With six integrated cement plants capable of producing more than 50 million metric tons annually, Nigeria still relies on regional imports for roughly 20 percent of its cement consumption. Under the Nigeria First directive, government‑funded infrastructure and housing projects must source locally manufactured cement, steel, and aggregate wherever possible. Guaranteed offtake of high‑volume materials will encourage further investments in precast concrete, roofing systems, and other downstream products, helping to lower construction costs and accelerate urban development.

Automotive Assembly

Domestic vehicle assemblers assembling completely knocked‑down (CKD) kits have struggled to scale up in the face of competition from used‑car imports and cost‑inflated components. The Renewed Hope policy mandates that federal transport fleets purchase vehicles from licensed Nigerian assembly plants, provided they meet specified local‑content thresholds. This directive will enhance economies of scale, attract deeper partnerships with global automakers, and spur skills transfer for automotive engineers and technicians.

Pharmaceuticals and Chemicals

Despite hosting over 120 pharmaceutical manufacturers, Nigeria imports around 70 percent of its active pharmaceutical ingredients (APIs) and more than 30 percent of finished medicines. Government‑operated hospitals and clinics will now be required to procure drugs from domestic producers that meet quality standards, with any foreign API contracts including compulsory technology partnerships. This measure aims to strengthen drug‑security resilience, reduce supply‑chain vulnerabilities, and promote the growth of the local chemical sector.

Textiles and Garments

Once celebrated as a textile powerhouse, Nigeria now sources over 90 percent of its fabric needs from abroad. Under the new framework, federal uniform contracts—for security services, schools, and other public entities—must be fulfilled by Nigerian mills and garment manufacturers. By guaranteeing an initial baseline of demand, the policy aspires to revive textile clusters in Kano and Kaduna, triggering investments in cotton ginning, weaving, and finished apparel.

Macroeconomic Context and Complementary Reforms

The “Nigeria First” initiative coincides with a broader suite of economic reforms pursued by the Tinubu administration. These include the removal of longstanding fuel subsidies, the introduction of a unified foreign‑exchange regime, and a more rigorous approach to fiscal discipline. Nigeria’s 2025 budget—set at ₦55 trillion (approximately $36 billion)—prioritizes capital expenditure, infrastructure upgrades, and local manufacturing incentives.

With annual inflation around 18 percent and first‑quarter GDP growth of 2.8 percent, policymakers view the new procurement policy as a lever to multiply domestic value creation, retain scarce foreign exchange, and mitigate external vulnerabilities. By channeling government spending into local factories and farms, the administration hopes to stimulate a virtuous cycle of production, consumption, and reinvestment.

Voices from Industry and Labor

Industry associations have welcomed the policy’s direction while underscoring the importance of careful implementation:

Manufacturers Association of Nigeria (MAN):

Representatives noted that guaranteed government offtake could restore confidence in factories that have long operated below capacity, unlocking up to 10 percent additional output in key sub‑sectors.

Nigerian Employers’ Consultative Association (NECA):

Advocated for phased rollouts to allow small and medium‑sized enterprises to scale operations, upgrade machinery, and meet new quality benchmarks.

Chartered Institute of Procurement and Supply Nigeria (CIPS Nigeria):

Emphasized that the BPP must be adequately resourced with personnel and technology to manage the supplier database, conduct real‑time audits, and avoid unnecessary bureaucratic delays.

Labor Unions (NLC and TUC):

Applauded the job‑creation potential of the policy, particularly if it is paired with targeted skills‑development programs and expanded access to low‑interest financing for local entrepreneurs.

Tackling Implementation Challenges

Several hurdles stand in the way of success:

Capacity Constraints: Many domestic firms lack the scale or certification to meet complex government contracts.

Infrastructure Deficits: Unreliable power, poor road networks, and limited industrial zones drive up production costs.

Risk of Waiver Abuse: Excessive reliance on waivers could undermine the policy’s goals and perpetuate import dependency.

To mitigate these risks, the government plans complementary measures:

Public‑Private Partnerships (PPPs): Mobilizing capital through infrastructure‑focused vehicles to upgrade power, transport, and digital networks.

SME Financing Programs: Expanding Central Bank credit facilities and matching grants via the Bank of Industry and the Nigeria Export‑Import Bank.

Technical Assistance and Standards Certification: Partnering with development institutions to help local firms achieve international quality and safety standards.

Stories of Renewal

In Kaduna State, a mid‑sized garment factory owned by the Ibrahim family faced closure after years of underutilized capacity. With the new policy, they won a tender to supply school uniforms to three federal institutions. The guaranteed order enabled them to hire 200 additional tailors, invest in modern sewing machines, and refurbish their dye house. “Government contracts have become our lifeline,” says Managing Director Aisha Ibrahim. “We never imagined that public procurement could have such a direct impact on our community.”

Similarly, in the Benue River valley, smallholder sugarcane farmers are forming cooperatives to supply a local refinery that has secured its first federal‑agency order for 5,000 metric tons of refined sugar. The boost in demand has encouraged farmers to expand cultivation onto previously uncultivated land, creating new rural employment opportunities and reviving ancillary businesses such as transport and packaging.

Regional and Global Resonance

Nigeria’s pivot toward localization mirrors trends in South Africa, India, and Mexico, where authorities have enacted local‑content rules to spur industrial development. On the continent, the African Continental Free Trade Area encourages member states to deepen value chains and retain more value within Africa. By demonstrating how public procurement can be harnessed as an industrial policy tool, Nigeria hopes to inspire similar initiatives across West Africa, leveraging its market size to attract regional and international investors.

Looking Ahead: From Policy to Prosperity

The true measure of the Renewed Hope Nigeria First Policy will be in its execution. Success will require strong political commitment, clear accountability structures, and ongoing collaboration between government, industry, and labor. If implemented effectively, the policy has the potential to:

Revitalize manufacturing and agro‑processing.

Generate millions of new jobs in urban and rural areas.

Reduce import bills and conserve foreign currency.

Foster technological upgrading and skill development.

Enhance Nigeria’s resilience to global economic shocks.

As President Tinubu prepares to sign the Executive Order, attention now turns to the Bureau of Public Procurement’s capacity to translate policy into practice, the readiness of local suppliers, and the speed at which MDAs can realign their procurement plans. The government’s challenge will be to maintain momentum, adapt to unforeseen hurdles, and measure progress against clear targets.

Conclusion

The FEC’s approval of the Nigeria First policy marks a watershed in Nigeria’s quest for sustainable development. By repurposing government spending as an engine of industrial growth, the administration aims to deliver on its promise of renewed hope—transforming ideas into factories, imports into domestic production, and budgets into broad‑based prosperity for Nigeria’s 220 million citizens. The path ahead is complex, but the policy offers a bold blueprint: one where every naira spent by the government becomes an investment in Nigeria’s future.

Ready to take your career to the next level? Join our dynamic courses: ACCA, HESI A2, ATI TEAS 7 , HESI EXIT  , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟 Dive into a world of opportunities and empower yourself for success. Explore more at Serrari Ed and start your exciting journey today! ✨

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

7th May, 2025