Senate’s support encouraging but should be matched with concrete action
It is heart-warming to see the Senate lend impetus to the Nigeria First policy endorsed by the Federal Executive Council (FEC) on May 5. The policy, as endorsed, prioritises Nigerian manufacturers, service providers, and contractors in all procurement activities.
While on an oversight visit to the Nigerian Content Development and Monitoring Board (NCDMB) headquarters in Yenagoa, the Bayelsa State capital last week, chairman of the Senate Committee on Local Content, Senator Joel-Onowakpo Thomas, not only promised legislative support to see the policy through but also to prevent the outsourcing of jobs meant for Nigerians to expatriates.
Explaining that the committee’s visit was aimed at verifying the NCDMB’s compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, which seeks precisely the same objectives, he assured NCDMB of his committee’s collaboration with the board and stakeholders to implement the act effectively and monitor compliance by international oil companies.
“Never again will jobs meant for Nigerians be outsourced to expatriates”, he said.
Earlier, the NCDMB had appealed for the National Assembly’s support in strengthening local content laws to ensure alignment across legislations and uphold the “Nigeria First” policy.
We note that nothing in the Nigeria First policy could be said to be entirely new. With the NOGICD Act and other similar regulations in the public procurement process known to be in place, we dare say that the issue has never been one of a lack of understanding of the imperative to prioritise local goods and services in public procurement, but the fact that the regulations have tended to be observed more in the breach.
The explanations for this situation are certainly not far-fetched. They are to be found in the multiplicity of factors, ranging from lack of capacity by local economic actors, poor quality of local alternatives, the pervasive corruption and, if we may add, the lack of patriotism by officials in charge – all of which combined find expression in the preference for foreign goods and services by officials, even when matching local substitutes exist.
The Bola Tinubu administration has certainly done well for bringing the issue to the fore, and for making it a key performance metric under the Central Coordinating Delivery Unit of the Presidency. It seems to us a measure of how the administration views the initiative as an integral part of its reform agenda, which overall, seeks to deepen the economy by creating wealth and boosting local capacity.
Our understanding of the underlying message of the policy is that it would no longer be business as usual; that decisions on public procurement will henceforth be held to the strictest test of compliance with local content requirements and that the officials charged with their implementation will be held accountable for breaches, going forward.
This is where the pledge by the chair of the Senate Committee on Local Content finds particular relevance. His declaration of willingness to collaborate with the executive, though important, is certainly not enough; it must translate into concrete measures to identify and possibly, block whatever loopholes that still exist to undermine the lofty goals of the local content policy.
This obviously goes beyond routine oversight and monitoring; it well includes, where necessary, additional legislative interventions. How about a mandatory certificate of compliance to be issued by the Directorate of Public Procurement, if only to make the resolve tangible?
Of course, it goes without saying that the ultimate test for the Nigeria First policy would lie in the competitiveness of the local suppliers and service providers in terms of pricing and quality. The expectation is that local economic actors will pick up the gauntlet by delivering world-class goods and services, if only to make the quest not only worthwhile, but enduring.
The Manufacturers Association of Nigeria (MAN), yesterday, urged the Federal Government to gazette the Nigeria First policy and make it a binding law, with punitive measures for violators.
MAN Director General Segun Ajayi-Kadir said this was critical to give the policy legal standing, ensuring transparency, public awareness, and enforceability across government institutions and the private sector.
Approved on May 5, 2025, the Nigeria First policy is a bold and transformative initiative that prioritised the use of locally manufactured goods and services in all government procurements.
The policy stipulates that government agencies must abstain from procuring foreign products or devices that are already manufactured within Nigeria—unless a clear, justifiable exception is made.
Speaking yesterday in Lagos, at the this year BusinessDay Manufacturing Conference, Ajayi-Kadir commended the Federal Government for the policy pronouncement, stating that the nation anxiously awaits the initiative’s expedited consummation and its effective implementation.
At the conference, with the theme, “Unlocking Nigeria’s Manufacturing Potential: Strategies for Sustainable Growth amid Economic Turbulence,” Ajayi-Kadir stressed the need to gazette the Nigeria First policy and make it a binding law, and punitive measures put in place for violators.
The MAN DG, who was Keynote Speaker, said the policy must quickly move from initiation to government policy, lest it suffers the same fate as the Executive Orders 003 and 005.
The Federal Government, some years ago, put the spotlight on local manufacturing, coming out with the Executive Order 003, which stated that all Ministries, Departments and Agencies (MDAs) shall grant preference to local manufacturers in the procurement of goods and services.
Also, the Executive Order 005 directed all MDAs to engage indigenous professionals in the planning, design and execution of national security projects and maximise in-country capacity in all contracts and transactions with science, technology and engineering components.
Sadly, however, the Executive Orders 003 and 005 were marred by lax compliance and shoddy implementation.
Ajayi-Kadir said with Nigeria First policy, “Nigeria must seize this moment to transform its manufacturing sector by prioritising the patronage of local products,” noting that “If we fail to nurture our own, we will forever be at the mercy of others.”
He urged government to create structured platforms for regular consultation with manufacturers to ensure policies are inclusive, practical, and aligned with industry needs.
The MAN boss also called on consumers to prioritise and actively support locally made products to help stimulate demand for domestic manufacturing.
“By choosing Nigerian-made goods, consumers can contribute to the sector’s resilience and growth, fostering economic development and job creation,” Ajayi-Kadir said.
He described this year’s conference as “apt and timely,” because “we operate in an era of economic uncertainty, global supply-chain disruption and rapid technological change.
“Therefore, unlocking the evident potential of the Nigerian manufacturing sector is not just an economic imperative; it is a strategic necessity for sustainable national development.”
What has bypass electricity and “Nigeria First”, President Bola Ahmed Tinubu’s new slogan, got to do with the prices of plant medicines that are so high that even apostles of natural medicine cannot afford them? What can Nigeria First do about it?
I am not speaking in parables when I talk about by-pass electricity, rising prices of food supplements and “Nigeria First”. For two weeks running, importers of food supplements for the Nigerianmarket have been falling over one another, as it were, and trailing one another’s footsteps to announce new and unbelievable prices. Even Nigerian or semi Nigerian companies which have been capitalising on the high prices of foreign products have begun to also raise their prices. I am a “family member”, so to say, in some of these companies. That means I regularly patronise them because I know the value of natural food supplements, and I have been adding them to my meals for more than thirty-five years. As a testimonial, I have not been to hospital, except to the opthalmologist, nor have I had to run any medical test nor use any pharmaceutical drugs for any health challege in the last thirty-years. So, you may imagine how raw I felt when I received the first notices of price hikes about two weeks ago from three of the companies which stock some of my favorite food supplements. Below, I mention some of the products and their new prices in retailer stores. They are designed for consumption within one month.
Please note that these are shelf prices which may have rocketed from soaring company prices by between 25%-30% to recoup the overheads of retailers.
We cannot blame anyone for this. Minimum wage has gone up. Prices must bear the burden. The economy is fraught with fraud. Prices must absorb the wastage. The cost of doing business is high. If NAFDAC charges up to five million to license a single product for market appearance over one or two years, shelf prices will have to reflect it. Electricity cost is rising by the day. Importing and retailing companies use electricity in their offices, but they are over billed. The electricity producing company sells electricity to the electricity transmission company. The transmission companies sell electricity to the electricity distribution company ( DISCos). The DISCos sell electricity to all of us electricity users in homes, offices, schools, cold rooms, food stores, factories e.t.c. However, not all of us pay for electricity and that is one of the major causes of escalating shelf prices in the natural medicine market.
Disco marketers and pole men, that is the technical staff, of the DISCos sell electricity to official customers of the DISCos and to their own private customers. The electricity they sell to their own customers is called ByPass Electricity, because the cable connection, the supply to the customers and the returns by-pass the DISCos for the private pockets of the marketers and pool men. This by-pass income is mountainous.
When the DISCos do not have enough returns to settle the bills with the electricity transmitting company and the electricity producing company, they share the shortfall and their expected profit among law-abiding or straight forward customers. We all call such electricity bills “crazy bills”. We demand meters, but we are not given. When the government comes to our rescue by importing meters and compelling the DISCos to give us, they grudgingly do so but not before they had engineered the meters to run and to read faster than they should. On top of that, they raise the tariff. And, once again, prices escalate.
To underscore the challenges this has created in the plant medicine industry and market, we only need to be advised on the prescriptions of Dr. Robert Atkins for two common diseases in Nigeria…Hypertension and Diabetes, and then deduce the monthly cost of treating them from the new prices of some of his prescription. Dr. Atkins was a renowned orthodox medical practitioner in the United States, and one of the first generation of doctors in that country who recognised the dangerous side effects some pharmaceutical drugs posed to health and began to explore the safer and better healing potentials of natural medicines.
For Hypertension and Diabetes, his prescriptions, offered free in his book, Dr. Atkins Vita Nutrient Solution and sub titled…Nature’s Answer to Drugs, include but are not limited to the following remedies. He classifies these remedies as “essential “ and “moderately essential”. My report below excludes the daily dosages he assigns to them.
Hypertension (Essential)
Magnesium, CoQ10, L-carnitine,Taurine, Vitamin E , Vitamin C, Essential Oils formulas, Mixed Tocotrienols, Chromium, Pantethine, Natural-source Beta-carotene, Ginkgo Biloba extracts, Hawthorn and B complex
Vitamin C, Vitamin E, Carnitine, Vitamin A, Siberian Ginseng, Manganese, Mixed Fibre Blend, Calcium, Licorice, Curcuminoids and Copper Sebacate.
Dr. Atkins wrote: “When your objective is to elevate blood sugar to normal levels or reduce your dosage of antidiabetes medication, the following list should prove helpful… Chromium, Lipoic Acids, CoQ10, Biotin, Inositol, Zinc, Niacinamide and DHEA
If we go by the new retail prices above, Hypertension or Diabetes good medicine may cost about N200,000 every month for an average of three or four good medicines for the ailment. In Hypertension, for example, my first four favourite or herbal medicines are Hawthorn Berries, CoQ10, Vitamin E (Mixed Tocopherols and Mixed Tocotrinols), Magnesium. There is no space here for me to explain the chemistry of their actions. However, as for the tocopherol and tocotrinols, I obtain them dietarily from boiled palmfruit. If the budget permits me, I may add mega dosage Vitamin B Complex, Vitamin E and Omega-3 Fatty Acids. As for blood sugar balance, my preferences nowadays are wholesome diet with raw, edible leaves and small plants such as pawpaw leaf, nettle, chanka piedra, ressurection plants, vervain, oregano, scent leaf, bitter leaf, and karella (ejirin in Yoruba), among others. A diabetic may grow all of these in his or her home garden.
What is going on? Everyone is asking. Nigeria Info 99.3 FM radio station in Lagos, asked this question last week, giving me the idea for this column. The presenter was Marian. In my view, her presentation was unbalanced, almost, as always, inciting something often like The government versus the rest of us… What are we doing? Why are we docile?
In this mood last week, she played a 2023 clip of Bola Ahmed Tinubu’s campaign promises on electricity supply if he became President. Tinubu’s bottomline was that, as President, if he did not provide electricity 24 hours a day year round, and he could not explain why, no one should vote for him in 2027. Many callers on the programme berated the President. I hold no brief for him. He has said no one should pity him. However, journalism is all about holding the balance in the society. Hasn’t Marian heard about Bypass Electricity? I wondered! Could she not educate her listeners and callers?
A Solution
Bypass Electricity is pervasive. I understand the fine is N1 million and that marketers and pole men who discover it take about N100,000 and look the other way. A solution of the problem is a meticulously planned crackdown using honest task forces. Housing estates and other residential neighbourhoods may be targeted and ransacked at different times. So can markets, offices, factories e.t.c. It is a pity Nigeria’s property market has not been digitalised and private sector workers do not declare their assets when they are employed. Were these in place, it should be easier to handle DISCo marketers and pole men.
Meanwhile, their activities have put the natural medicines market in jeopardy and is hurting the health of many Nigerians who sustain their health on nutritional food supplements.
If today’s shalf prices are beyond my reach, what will tomorrow’s be? Could I be shocked any more when my step mother said she was now buying her choice Bragg’s Apple Cider Vinegar with mother for almost N50,000. That is even when you see a bottle on the shelf. Last week, someone published in my health chat group, Kusa Green Pastures Herbs useful information on Lycopene for prostate gland health. Many men were excited and bombarded me with questions about where they could get it to buy. I knew they were on a wild goose chase. In the best of times, Lycopene hardly came to the market as a single product. In several men’s virility formulas, it came combined with such other prostate gland health nutrients as Stingy Nettle Root, African Black Ant extracts, Saw Palmetto Berries, Pumpkin Seeds, Zinc, Vitamin E and Omega-3 Fatty Acids, among others.
One of the previous regular stockists of Lycopene told me she tried to import one kilogramme powder of Lycopene recently but gave it up when she received a bill of about $450. Next, she ordered one kilogramme of Tomato Paste extracts which offers good amounts of Lycopene, but the powder caked and no one would buy it. Apparently, her supplier may have been watching costs and did not protect the powder with anti-caking agents which may be unnatural ingredients, anyway. One other source of Lycopene last week was a product offered to Nigeria by now Ghana-based PURE Company in its product named Daily Build. This product is now going for about N60,0000. It is a compendium of about 60 or more nutrients of which Lycopene was just one infitesimal part. So, it offered no appeal to the Lycopene enquirers.
They realise they could obtain a lot of Lycopene from their house back garden by growing tomatoes in sacs or plastic buckets. You do not get Lycopene from tomato by eating it raw or consuming it in juice form but by cooking it. Cooking breaks the cell wall to enable it release a maximum yield of Lycopene. Raw tomato gives plenty of Vitamin C. In the days when tomato was cheap, I ate no fewer than four every day with a meal…corn pap, rice, beans, yam porridge, two parboiled tomatoes for their Lycopene and two raw ones for Vitamin C. The parboiled tomato is sweet, almost sugary!.
The mother of one of my former health food store acquaintances passed about two weeks ago of Hypertension-related causes. She must have bottled it up for years, and went over to her daughter’s when death approached. The doctor advised about six laboratory tests. There was hardly money for any. Two days later, a stroke paralysed the old woman’s right arm and right leg. Still, there was no money for the hospital or any of those tests. Being a fresh stroke, the young woman gave her mother some Jobelyn Capsules, as it had been reported in some studies that this blood formula could help. The following day, this old woman rose to her feet. There was jubilation. Some money was found for a test. The creatine and urea levels were abnormally high. The kidney may have been impaired or damaged. Two days later, she passed. Could her life have been extended if the prices or food supplements had been avoidable and the economy was not fraught with business misbehaviour?
Nigeria First
Earlier, I wondered what “Nigeria First” had to with all of this. A lot, indeed. “Nigeria First” is the new slogan of President Tinubu, after “Renewed Hope Agenda”. In Nigeria First, ctizens are encouraged to make Nigerian products their preferences over foreign ones. The Nigerian plant medicine industry visualised Nigeria First before the President. For months, this column has been reporting local efforts which are struggling to compete with and to displace foreign products that were becoming very expensive and unavoidable. Please recall the presentation on this page of the Bayelsa State-based Millenium Nature Pathway (MILNAPATH) and, later, of Edible Herbs.
Before I proceed, I would like to say MILNAPATH, Edible Herbs and other local efforts are personal victory for me and others like me who midwifed network marketing of nutritional supplements in the 1990s. At that time, our critics said I was using The Guardian newspapper on which I was Director of Publications and Editor-in-Chief to promote influx of foreign plant medicines. They were not persuaded that the influx would open their eye to better ways of plant medicine packaging and marketing. We have been proven right. Jobelyn and other medicines came up in the twinkle of am eye. So did Carrot beauty product. Can we forget Friends of Nature? Many persons in my generstion still owe their health to Mrs. Elizabeth Kafaru. Who is a Catholic who has not heard of Pax Herbal Centre of Rev. Father AnselmAdodo? For years now, Fr. Adodo has been running a natural medicines hospital at the GRA in Ikeja, Lagos. These are offshoots of our “Nigeria First” efforts of those days.
Co-incidentally, both MILNAPATH and Edible Herbs, grandchildren offshoots of those efforts, launched new products into the market last week. That reaches health challenges in mental acuity, vision, pain, malaria and typhoid fever, digestion, arthritis, Female reproductive health needs, male reproductive health matters, blood circulation and hypertension, diabetes e.t.c. The field is widening.
Edible Herbs has about 40 or 50 products now, including the currently roaring Sagbadewe Bath Soap. Sagbadewe Soap and Sagbadewe Syrup are made wholly from Nigerian ingredients. In Yoruba Language, Sagbadewe means anti-aging or age reversing. The ingredients of Sagbadewe Soap are transdermally invaginated into the body through nerves endings in the skin. The soap, should, therefore, be benefical in reflex zoon therapy of the foot and, especially, in pedicure, as all organs of the body are believed by reflex zoon therapists to be connected to the feet through nerves endings. Stimulating these nerves endings, therefore, awaken from slumber various organs that are “sleepy” and inefficient. The primary target of the ingredients is the Central Nervous System ( CNS) which is anything but calm in many persons. Thus, Sagbadewe Soap is indicated for pain, restful sleep, calm composure outside sleep, apart from cleaning skin blemishes, healing atlethe’s foot and stopping convulsion, among several other benefits.
Another local company I am watching is coming up. It has many products in the market already. However, its toothpaste has put me off. I try some of these products before I announce them. My favourite toothpaste for years have been the Chlorophy -based one from EDMARK, which has been out of business for some years due to a court case, and the Aloe vera-based one from Forever Living Products (FLP). Both being not readily accessible, I have been using my own formulation for about two years. Last month, a distributor from a new company introduced me to a toothpaste. In my opinion, too, high sounding claims were made. I was not disappointed. I stopped using the product after about three days because I suspected Morphine to be one of its ingredients. Was this why it was claimed that it would block tooth pain and cause cavities to fill up on their own? I wondered! Morphine is opium derived, and used in hospitals when other pain relief medications seem not to work. It can be a dangerous medication as it may affect the brain. Could it not kill an exposed tooth nerve and, thereby, give a sense of well-being, whereas, when the tooth pulp is dead, microforms take it over, sometimes warranting root canal surgeries which are expensive?
The long and short of it is that, irrespective of Bypass Electricity, Nigeria First was already fruiting in the local plant medicine community long before the President saw the vision. What the sector needs are machines. About three years ago, I thought of freeze-drying internationally well researched medicinal plants which grow luxuriantly in Nigeria but which we import from Europe and China every day. The cheapest freeze drying machine in the United Kingdom cost about 5 million Pounds Sterling. Who, in old age, would take a loan for that in a country where the ease of doing business is internationally poorly rated, where fraud is rife, where electricity is so expensive because marketers and pole men have constituted themselves into a new mafia in the energy sector, selling their company’s electricity to unscrupulous consumers, milking law-abiding consumers and walking free because it is not easy to go after them?
Despite enduring macroeconomic headwinds and structural hurdles, the nation’s manufacturing sector is finding flickers of hope amid bold policy reforms. As the real engine of economic growth, manufacturing sits at the heart of the nation’s aspirations for industrial revival. Two years into President Tinubu’s ambitious Renewed Hope Agenda, the sector stands at a crossroads—grappling with painful shocks yet bracing for transformation driven by audacious fiscal and monetary recalibrations, reports Assistant Editor CHIKODI OKEREOCHA
For decades, the nation’s economic narrative has been one of boundless promise shadowed by persistent and complex challenges. As Africa’s largest economy, the nation is endowed with vast natural resources, a burgeoning youthful population, and an enviable geopolitical stature within the continent. Yet, despite these inherent strengths, Nigeria has struggled to fully harness its potential. Chronic under-investment in critical infrastructure, pervasive corruption and a stubborn dependence on oil exports have collectively stifled the country’s progress. These longstanding impediments have slowed efforts to diversify the economy and elevate living standards, leaving many Nigerians eager for transformative change.
In this context, the recent unveiling of the Nigeria First Policy by the federal government emerges as a clarion call for economic revival and self-determination. This ambitious blueprint is designed to reposition Nigerian businesses, talents, and resources as the pillars of a new economic renaissance. It signals a deliberate and strategic pivot away from external dependency toward a future defined by economic sovereignty, resilience, and sustainable growth.
Capping a wave of strategic reforms, the Federal Government’s approval of the Nigeria First policy directive on May 5, 2025, has been widely welcomed as a bold and transformative initiative. Announced by the Minister of Information and National Orientation, Mohammed Idris, the policy mandates that all government procurement processes henceforth prioritise Nigerian-made goods and services. This directive is more than procedural; it is a deliberate and symbolic assertion of the government’s resolve to empower local manufacturers and safeguard domestic value chains. Crucially, the policy stipulates that government agencies must abstain from procuring foreign products or devices that are already manufactured within Nigeria—unless a clear, justifiable exception is made.
The Nigeria First Policy is poised to be formalised through an executive order from President Bola Tinubu, aligning with his broader economic vision to shield the Nigerian economy from the shocks of a volatile global environment. Central to this vision is the ambition to ignite sustainable industrial growth and generate jobs at a scale commensurate with Nigeria’s vast population. This move seeks to reposition the manufacturing sector as the vibrant engine of national development, catalysing economic diversification and fostering resilience.
Industry stakeholders have expressed cautious optimism about this shift. The Director General of MAN, Segun Ajayi-Kadir hailed the policy as a long-overdue lifeline. “This initiative offers renewed hope and encouragement to Nigerian manufacturers who have endured harsh economic conditions with unwavering faith in the country’s potential,” he noted. More than a mere policy statement, Nigeria First is a concrete affirmation of government commitment to nurturing a self-reliant economy. Ajayi-Kadir, a leading voice in the manufacturing community, emphasised that by prioritising locally made products, Nigeria can stimulate domestic demand, optimise capacity utilisation, and attract vital private sector investments. The ripple effects of such a shift are profound: revitalised industries, reduced unemployment, enhanced innovation, and a shrinking trade deficit—each reinforcing a stronger national identity intertwined with economic self-determination.
Complementing this perspective, Mr. Adewale-Smatt Oyerinde, Director General and Chief Executive of the Nigeria Employers’ Consultative Association (NECA), described the Nigeria First Policy as “a strategic economic imperative that organised private sector stakeholders have long championed.” According to Oyerinde, this intervention directly addresses pressing economic challenges by mandating the prioritisation of Nigerian-made goods and services. He underscored its potential to boost domestic production capacity, relieve pressure on the foreign exchange market, and invigorate industrial growth—while simultaneously creating much-needed employment opportunities. “For years, we have urged the government to fully back local manufacturers,” Oyerinde stated. “This policy provides a practical pathway toward self-sufficiency and a more robust, resilient economy.”
In sum, the Nigeria First Policy heralds a pivotal moment in Nigeria’s economic journey. It embodies a shift toward inclusive growth, where local knowledge, resources, and ingenuity take centre stage. While challenges in implementation remain, the policy’s success could redefine Nigeria’s economic trajectory—empowering its people and industries to compete confidently both at home and abroad. In this new dawn, Nigeria stands poised to reclaim its place not just as Africa’s largest economy, but as a beacon of economic sovereignty and sustainable development.
It is no coincidence that the real sector—particularly manufacturing—is widely regarded as the engine of economic growth. This recognition stems from the sector’s pivotal role in driving broad-based development. With its intricate linkages across agriculture, services, and trade, manufacturing possesses an unmatched capacity to generate employment, enhance productivity, and contribute significantly to national output. More importantly, it offers a viable pathway to inclusive and sustainable development, creating value chains that can uplift millions and drive long-term economic transformation.
Thus, it came as no surprise when the administration of President Bola Ahmed Tinubu, in alignment with its Renewed Hope agenda, set an ambitious industrialisation target: to grow the manufacturing sector by an average of six per cent annually. At the heart of this aspiration lies a broader economic vision—to elevate Nigeria into a $1 trillion economy by the year 2026, powered by a revitalised and competitive manufacturing base. In this vision, factories would hum with renewed activity, warehouses brim with homegrown goods, and the Nigerian brand, once constrained, would stand tall on the global stage.
Yet two years into the administration, a pressing question persists: has this crucial engine of growth been successfully jumpstarted? Has manufacturing lived up to its promise as the linchpin of national economic renewal? And more critically, have the government’s fiscal and monetary reforms helped to resolve the deep-rooted and emerging challenges faced by the sector?
From the outset, the Tinubu administration did not underestimate the scale of the task before it. It inherited an economy burdened by structural imbalances, including weak infrastructure, limited industrial financing, and inconsistent policy implementation—all of which had long conspired to suppress Nigeria’s manufacturing potential. But as the administration sought to clear a path for reform, it also introduced sweeping policy changes that, while bold and necessary, delivered severe short-term shocks to both businesses and households.
Chief among these were the removal of the decades-old fuel subsidy regime and the liberalisation of the foreign exchange market. While the end of fuel subsidies helped to eliminate a major fiscal drain and curb corruption within the system, it led to a sharp, nearly 500 per cent rise in petrol prices over the course of a year. For manufacturers, this translated into skyrocketing transportation and energy costs, complicating production planning and eroding competitiveness.
Simultaneously, the unification of Nigeria’s multiple exchange rates and the subsequent floatation of the naira brought dramatic currency devaluation. Between October 2023 and October 2024, the naira lost over half its value—prompting the World Bank to rank it among Africa’s worst-performing currencies during that period. The sudden depreciation sent shockwaves through the economy, significantly increasing the cost of imported raw materials and machinery that many local manufacturers still rely on.
While the World Bank acknowledged that the reforms eventually improved foreign exchange liquidity and helped stabilise the naira by early 2025, the path to that point was turbulent. Businesses, particularly in the manufacturing sector, were left grappling with rapidly rising input costs and reduced consumer purchasing power. The inflationary spiral sparked by these twin reforms deepened Nigeria’s cost-of-living crisis, with food and fuel prices reaching unprecedented highs. Real incomes fell sharply, and the promise of an industrial rebirth began to feel remote for many.
The impact on household welfare was profound. Nigerians faced skyrocketing prices across essential sectors—food, transportation, energy, healthcare, and education—effectively lowering living standards. Businesses, especially those in the manufacturing sector, were not spared. Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), offered a sobering picture of the sector’s performance under these strained conditions. According to him, the combined weight of high inflation, currency depreciation, surging interest rates, escalating electricity tariffs, sluggish sales, multiple taxation, and persistent security challenges had placed manufacturers under immense pressure. These compounding factors severely eroded profitability and dampened the sector’s overall contribution to the nation’s GDP.
He noted, for example, that inflation had soared to a staggering 34.6 per cent by November 2024, drastically diminishing consumer purchasing power and triggering a slump in demand for manufactured goods. The direct consequence was a growing stockpile of unsold inventory—reportedly valued at over N1.4 trillion across the manufacturing sector. In addition, the floating of the naira significantly inflated the cost of imported raw materials and machinery, compounding the operational challenges for manufacturers already grappling with thin margins.
Interest rates, another critical factor, surged to 27.7 per cent by November 2024, pushing the cost of borrowing beyond reach for many businesses. This stifled access to credit for expansion and technological upgrades, further limiting the sector’s capacity for growth and innovation. Compounding these challenges was a steep hike in electricity tariffs—by over 250 per cent—which turned energy costs into one of the largest operating expenses for manufacturers in 2024. In response, many firms were forced to invest in alternative energy sources, further depleting their already stretched resources and making it even more difficult to remain competitive in both local and export markets. These pressures, Meshioye observed, were clearly reflected in the manufacturing sector’s dwindling contribution to Nigeria’s GDP—a troubling signal for a country that aims to industrialise and diversify its economy.
The signs of distress within Nigeria’s manufacturing sector have become increasingly evident. For instance, the sector’s share of the economy declined sharply from 16.04 per cent in Q4 2023 to 12.68 per cent in Q2 2024, underscoring a contraction in economic activity. “The combination of high operational costs, reduced consumer demand, and limited access to finance contributed majorly to this decline,” said Otunba Meshioye.
The sector’s growth figures paint an equally troubling picture. In Q3 2024, manufacturing recorded a modest growth rate of 2.18 per cent—far below the six per cent average projected by the Tinubu administration. Even more concerning, this lacklustre performance came at a time when the broader economy experienced notable improvement, expanding by 3.46 per cent—compared to 2.54 per cent in the same period in 2023 and 3.19 per cent in the preceding quarter. According to the National Bureau of Statistics (NBS), the uptick in GDP was primarily driven by the services sector, which contributed a dominant 53.58 per cent to the economy. In contrast, agriculture and industry—which includes manufacturing—accounted for 28.65 per cent and 17.77 per cent, respectively. Within the services sector, key drivers included information and communication technology (14.51 per cent), trade (12.67 per cent), and financial and insurance services (4.72 per cent).This emerging pattern of growth has raised serious concerns among industry stakeholders. Ajayi-Kadir, expressed worry over the growing imbalance, warning that the dominance of the services sector poses a major setback to Nigeria’s industrialisation goals. He cautioned that as the services sector continues to expand—without a corresponding rise in manufacturing output and employment—the country risks undermining its broader economic objectives. “The economy is set to fail in its aspirations of reducing forex demand pressures, promoting value addition, generating mass employment, increasing export earnings, driving industrial-led growth, and ensuring sustainable development,” Ajayi-Kadir stated.
Ajayi-Kadir further warned that, under current conditions, “Achieving a $1 trillion economy by 2026 is apparently difficult.” He stressed that the manufacturing sector’s anaemic growth clearly signals how it is being stifled by rising interest rates, soaring exchange rates, and escalating energy costs. According to him, the continued decline in the sector’s real growth is a stark indication of the harmful effects of prevailing macroeconomic policies. This, he explained, is also reflected in the sector’s declining nominal growth, which dropped year-on-year from 36.59 per cent to 32.97 per cent—largely driven by high inflationary pressures and the exit of major multinational manufacturing firms from the Nigerian market. “It is evident that inflation has been a major factor undermining the growth of the manufacturing sector,” Ajayi-Kadir stated. “The sector has remained especially vulnerable to an unstable macroeconomic environment, worsened by recent economic reforms.”
He lamented the simultaneous underperformance of both agriculture and manufacturing—two sectors critical to national development. Agriculture, which plays a key role in supplying affordable local raw materials for manufacturing, and the manufacturing sector itself, failed to feature among the top five fastest-growing sectors during the period under review. While insecurity in key farming regions disrupted agricultural production and had negative ripple effects on agro-allied industries, macroeconomic and infrastructural headwinds continued to suppress the manufacturing sector’s potential over the past two years.
Fiscal and monetary reforms to the rescue
Since assuming office on May 29, 2023, President Tinubu has remained unwavering in his commitment to reposition Nigeria’s real sector—particularly manufacturing—as Africa’s most productive and globally competitive. Through bold and strategic reforms, his administration has sought to lay the foundation for a reenergized economy, driven largely by private sector growth. From the now-famous declaration that “subsidy is gone” to the liberalisation of the foreign exchange regime and the signing of four executive orders aimed at addressing tax-related concerns of manufacturers and other businesses, the administration has rolled out a series of reforms designed to catalyse a swift economic rebound.
The decision to end the fuel subsidy—long criticised for being opaque, corruption-prone and fiscally unsustainable—signalled a clear intent to confront long-standing structural distortions head-on. Introduced in the 1970s to cushion the high landing costs of imported refined petroleum products, the subsidy regime had evolved into a fiscal black hole, draining billions of dollars annually from the national treasury. On another front, the unification of exchange rates led to the floating of the naira—a move welcomed by stakeholders as a long-overdue correction. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), hailed the development as “a bold step” capable of unlocking investment opportunities, boosting employment, and improving capital flows into the country.
Micro, Small and Medium Enterprises (MSMEs)—a vital cog in the nation’s economic machinery—also received a lifeline with the introduction of a N75 billion single-digit loan facility disbursed through the Bank of Industry (BoI). With a competitive interest rate of nine per cent and no hidden charges, the scheme allows qualified MSMEs to access up to N1 million, offering much-needed support for business growth and sustainability. In another landmark move, President Tinubu on June 9, 2023, signed the Electricity Act 2023 into law, repealing the Electricity and Power Sector Reforms Act of 2005. The new law introduces a transformative shift by legally empowering states, private companies, and individuals to generate, transmit, and distribute electricity—a step widely seen as a game-changer for Nigeria’s power sector and a critical enabler for industrial expansion.
The move gladdened the hearts of manufacturers, with Ajayi-Kadir describing the Electricity Act 2023 as “a potential game changer for the manufacturing sector—if well implemented.” His optimism stems from the staggering annual loss of N10 trillion that the Nigerian economy incurs due to electricity shortages—a figure equivalent to about two per cent of the country’s GDP. Ajayi-Kadir noted that this persistent power deficit has long made Nigeria one of the most difficult environments in which to conduct business, with the country ranked 171 out of 190 in the World Bank’s Ease of Doing Business index. He expressed confidence that dynamic implementation of the Act would attract increased private investment into renewable energy, bolster energy efficiency, and significantly improve power supply to manufacturers—three critical ingredients for enhanced industrial productivity.
Signing of 4 Executive Orders
To provide crucial buffers and breathing space for the manufacturing sector amid tightening economic conditions, President Tinubu on Thursday, July 6, 2023, signed four executive orders. These deferred the commencement of certain tax changes contained in the Finance Act and the Customs, Excise Tariff (Variation) Amendment Order, which had threatened to impose additional fiscal burdens on businesses. The executive orders primarily addressed distortions in tax exchange rates and the arbitrary application of new levies, which had previously complicated manufacturing operations. Their suspension was widely welcomed by private sector operators, who saw the move as a reaffirmation of the administration’s commitment to a business-friendly environment.
In tandem, the President established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by renowned tax expert and former PwC Partner, Mr. Taiwo Oyedele. The Committee, comprising seasoned professionals from both the public and private sectors, was mandated to overhaul Nigeria’s tax architecture. Its scope included reforming outdated tax laws, harmonising overlapping levies, streamlining fiscal policy design, and improving revenue administration.
These efforts bore legislative fruit on Thursday, May 8, 2025, when the Senate passed the final two of four landmark tax reform bills. Together, these bills promise to modernise Nigeria’s tax administration, reduce inefficiencies, and offer a more transparent and predictable tax system for businesses. The four bills are: Joint Revenue Board (Establishment) Bill, 2025; Nigeria Revenue Service (Establishment) Bill, 2025; Nigeria Tax Administration Bill, 2025’ and Nigeria Tax Bill, 2025. Industry experts believe these reforms—especially when fully implemented—will simplify compliance, curb the multiplicity of taxes, and attract both local and foreign investment into Nigeria’s manufacturing space.
Consumer credit scheme promises a new dawn
Another strategic reform that underscores President Tinubu’s resolve to stimulate the real sector and unlock consumer demand is the Consumer Credit Scheme (CCS). Approved by the Federal Government, the CCS is designed to empower working Nigerians and small business customers to purchase products and services upfront while paying in instalments—thus boosting consumption and domestic production. The scheme’s first phase officially launched on April 21, 2024, targeting workers nationwide. It is in alignment with the President’s directive to expand access to consumer credit, thereby catalysing economic participation and enhancing financial inclusion.
Spearheading this initiative is the Nigerian Consumer Credit Corporation (CREDICORP)—a federally owned institution tasked with making consumer credit available to 50 per cent of Nigeria’s working population by 2030. In collaboration with financial institutions and cooperative societies, the CCS is expected to spur demand across key sectors, reduce reliance on informal borrowing, and bolster the manufacturing sector by expanding the domestic market for locally made goods. Industry observers see the CCS as a strategic bridge between policy and productivity—driving inclusive economic growth, stimulating the real sector, and offering a much-needed cushion for households grappling with rising living costs.
National Single Window to cut red tape and unlock billions
In a further bid to enhance ease of doing business and stimulate non-oil revenue, the Tinubu administration has revived and begun implementing the National Single Window (NSW) initiative—a centralised electronic trade platform aimed at streamlining Nigeria’s import and export processes. Originally conceptualised in 2016 but stalled due to bureaucratic inertia, the initiative was given new life under President Tinubu, who formally commissioned its implementation on April 16, 2024. Once fully operational, the NSW is projected to reduce average cargo clearance time at Nigerian ports by up to 60 per cent—a monumental shift for a country long plagued by inefficient and opaque port operations.
According to the Minister of Marine and Blue Economy, Adegboyega Oyetola, the NSW will enhance transparency, eliminate duplication of documentation, and significantly curb revenue leakages, which have been estimated to cost the Federal Government over $3 billion annually. The platform is also expected to improve national security by ensuring end-to-end traceability of trade-related activities at the country’s borders. As trade becomes more digitised and integrated through the NSW, exporters and importers will experience shorter wait times, fewer regulatory bottlenecks, and more predictable trade costs—critical factors in attracting foreign investment and deepening Nigeria’s industrial base.
Nigeria takes digital lead in Africa
In a further boost to its economic profile, Nigeria was recently named the Digital Trade Champion by the African Union (AU) under the Africa Continental Free Trade Area (AfCFTA) protocol. The recognition was conferred at the 38th Ordinary Session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia, where Nigeria’s pivotal role in the development and implementation of the AfCFTA Digital Trade Protocol, adopted in February 2024, was acknowledged. This prestigious designation underscores Nigeria’s growing influence in shaping the continent’s digital economy and affirms the government’s commitment to fostering cross-border e-commerce, innovation, and digital entrepreneurship.
Industry analysts view this recognition as both symbolic and strategic, especially as digital trade has become a critical driver of post-pandemic economic recovery and resilience. With the right support infrastructure, Nigeria could potentially become a continental hub for digital innovation, expanding its service exports and creating new economic opportunities across youth-led tech enterprises.
Manufacturers lament policy setbacks
Yet, not all of the administration’s policy moves have been met with applause. One notable sore point for local producers is the ban on alcoholic beverages packaged in sachets and small PET bottles (less than 200ml), which took effect on February 5, 2024. While the Federal Government argued that the ban was aimed at protecting public health—particularly by curbing underage alcohol consumption—industry operators raised red flags, claiming the policy was economically disruptive and poorly timed.
Manufacturers insist the ban infringes on the rights of legitimate businesses and risks destroying the investments of numerous indigenous entrepreneurs who have persevered through economic instability to sustain operations. “This blanket ban amounts to an economic ambush,” one industry source said. “It fails to account for the thousands of jobs tied to this value chain—from production to packaging to retail.” Critics argue that rather than outright prohibition, the government should have enforced stricter regulatory controls, including responsible marketing and age-verification systems, without stifling the entrepreneurial ecosystem.
Angst over Customs’ 4% FOB levy
Yet another policy threatening to undercut recent economic gains is the proposed reintroduction of a four per cent Free-on-Board (FOB) levy by the Nigeria Customs Service (NCS)—a move that has stirred palpable unease within the manufacturing sector. Although the implementation was initially suspended to allow for broader consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and other critical stakeholders, manufacturers remain deeply unsettled by what they describe as an ill-timed and economically hazardous policy proposal.
Ajayi-Kadir minced no words in his condemnation of the development, describing it as “inauspicious and deeply troubling.” “If implemented, this 4% FOB levy will become an additional cost overlay on the already burdensome 1% Comprehensive Import Supervision Scheme (CISS) fee. It is a counterproductive policy at a time when manufacturers are operating in survival mode,” he warned.
Ajayi-Kadir further noted that the levy would only compound existing bottlenecks, particularly when considered alongside a potential 15% increase in port charges, an unprecedented spike in energy costs, and the volatile import duty exchange rate regime. He painted a sobering picture of the current import landscape, revealing that the cost of imports had ballooned by over 118%—from N2.07 trillion in the first nine months of 2023 to N4.53 trillion in the same period of 2024. He warned that any further levies would only deepen inflationary pressures, erode manufacturers’ competitiveness, and jeopardise the very essence of Nigeria’s industrialisation ambitions. “Our members are already overwhelmed. Introducing yet another layer of financial burden will disrupt production cycles and possibly lead to shutdowns and job losses,” Ajayi-Kadir said in a statement issued to The Nation.
Expatriate employment levy sparks concerns
In a bid to bridge the wage disparity between expatriates and Nigerian workers, the Federal Government introduced the Expatriate Employment Levy (EEL) on February 28, 2024. The levy mandates companies to pay fees for employing expatriates and sets guidelines to encourage the prioritisation of Nigerians in foreign-owned enterprises. However, this policy was met with strong resistance from manufacturers and business operators. The Manufacturers Association of Nigeria and other stakeholders urged the government to direct the Nigerian Immigration Service (NIS) to halt enforcement of the EEL, warning that the levy could deter much-needed Foreign Direct Investment (FDI) and disincentivise domestic investors alike. “The implementation of this levy without adequate consultation sends the wrong signal about Nigeria’s commitment to maintaining an investment-friendly environment and promoting ease of doing business,” they argued.
Echoing this sentiment, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, called for a balanced and pragmatic approach to expatriate employment policies, emphasizing the delicate relationship between local workforce development and sustained FDI inflows.
Operators ask the Fed Govt to walk the reform talk
Beyond policy formulation, the chorus from industry leaders is clear: bold reforms alone are not enough. For these initiatives to translate into tangible progress, they must be followed by diligent, transparent, and consistent implementation. There is a shared conviction among stakeholders that the sustained success of Nigeria’s economic recovery hinges on effective execution of reforms and strategic interventions aimed at reviving the private sector.
Supporting this optimism, the World Bank’s Spring 2025 Africa’s Pulse report forecasts Nigeria’s economy to grow by 3.6 per cent in 2025, building on an estimated 3.4 per cent expansion in 2024. The report further anticipates growth strengthening to 3.8 per cent by 2027, assuming the continuation of current macroeconomic reforms. Industry voices underscore the importance of ongoing efforts. Otunba Meshioye, a respected figure in the manufacturing sector, noted that the sector’s trajectory and the broader economy’s health will depend largely on the successful implementation of passed tax reforms, macroeconomic stability, and investments in infrastructure and technology.
Ajayi-Kadir affirmed this outlook, stating: “Given the series of fiscal and monetary reforms under this administration, we expect the contraction of the economy to ease, ushering in a period of modest growth and exchange rate stability in 2025.”
Other urgent recommendations from manufacturers
To accelerate the revival of the manufacturing sector and sustain economic growth, manufacturers have urged the Federal Government to urgently address several critical challenges facing the industry. Key among their demands is a suspension of further electricity tariff hikes and a review of previous increases, which have significantly escalated operational costs. They also called for a halt to the persistent interest rate hikes and urged the Central Bank and commercial banks to provide single-digit interest loans tailored for manufacturers to ease their financing burden.
Expanding access to industrial credit remains a priority, with calls for the Bank of Industry’s capital base to be strengthened, thereby enabling greater support for manufacturing enterprises. Manufacturers also stressed the need to reverse the 15 per cent increase in port charges and fast-track the implementation of the National Single Window project to slash trade costs and reduce delays at ports. They further recommended the adoption of a transparent and predictable exchange rate mechanism for customs duties to stabilize import costs and advocated for enhanced collaboration between monetary and fiscal authorities to ensure policies are aligned and mutually reinforcing for economic growth.
“We hope for stability in the foreign exchange market and easing of the inflationary pressure,” added Sola Obadimu, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA). Obadimu emphasised that the anticipated resurgence of the manufacturing sector in 2025 is largely hinged on a stable forex market that will allow manufacturers to plan their production cycles and manage costs effectively. He also noted that declining inflation rates would pave the way for lower interest rates, creating a more conducive environment for business growth.”
Echoing this optimism, MAN President Ajayi-Kadir expressed confidence that a combination of foreign exchange stability, revised power pricing mechanisms, and effective tax reforms could drive the manufacturing sector to achieve 10 per cent growth in 2025. “If all these measures are implemented effectively, we expect a significant improvement in the sector’s performance and growth,” he concluded.
Not novel; the difference this time would be in public officials’ political will to implement it
In another bid to decisively address the excessive import dependency that has been identified as central to the country’s protracted economic crisis and her failed attempts, so far, to achieve meaningful industrialisation and development, the President Bola Tinubu administration has announced a new ‘Nigeria First Policy’ which prioritises local content in public procurement, domestic input in contract award and management, as well as self-reliance in investment decisions, business operations and consumption habits.
The policy aims to drastically reduce the importation of foreign goods and services by ministries, departments and agencies (MDAs) where local alternatives are available, empower local businesses, boost production and utilisation of local raw materials, and enhance employment generation.
To achieve these objectives, ministries, departments and agencies have been mandated to review and resubmit their procurement plans to conform to the new policy while the Bureau of Public Procurement (BPP) is to revise and enforce procurement regulations that favour local manufacturers and service providers.
In addition, the BPP has been directed to maintain an updated register of verified and qualified Nigerian manufacturers and service providers, and a compliance framework is to be developed to ensure that the local content requirements in procurement processes are adhered to.
A critical aspect of this policy is the emphasis on technology transfer and skill development, as any contract involving foreign procurement must now include clauses that promote technology transfer, skill development programmes and local production partnerships.
Incidentally, there is no government since the inception of this democratic dispensation in 1999 that has not proclaimed increased self-reliance and substantial reduction in importation of foreign goods and services as a cardinal policy.
The immediate past President Muhammadu Buhari administration, for instance, banned the allocation of foreign exchange from the official market for the importation of 42 items which it considered to be non-essential. It also initiated policy measures to promote self reliance in rice and textiles, among others.
Yet, the culture of import dependency has persisted due largely to a lack of the political will by successive governments to enforce the policy and the glaring failure of the political elite, including public office holders, to match their rhetoric with practical example of patronage of local goods and services.
The implication has been the continued expenditures of high percentages of insufficient revenue earnings on importation of raw materials for the manufacturing sector and agricultural food items even where there are locally produced alternatives.
Thus, it has been reported that the manufacturing goods sector accounted for 44.2 per cent of the country’s total import value of N60.59 trillion in 2024 and that “Raw materials accounted for 11 per cent of Nigeria’s total imports while agricultural products comprised 6.2 per cent, highlighting the country’s reliance on foreign inputs for both industrial and food needs”.
If this new policy is to succeed, determined efforts must be made to re-orientate Nigerians away from the deeply entrenched inferiority complex that makes most people to prefer foreign goods even when the latter are not necessarily superior to domestic alternatives.
This is why aspects of the new policy that seek to promote national pride and self belief by instilling confidence in Nigerian products and encouraging local enterprise must be pursued with all seriousness and diligence. Achieving this objective will entail crafted and effectively disseminated mass awareness and enlightenment programmes.
No less critical is the need for government officials in particular to set the pace by patronising local products. In this regard, members of the 10th National Assembly presented a bad example when they insisted on the procurement of foreign exotic official cars when there are local vehicle manufacturing companies, and despite the severe economic hardships currently faced by most Nigerians. This contrasts with what obtained in the late 1970s in the country, for instance, when public officers were compelled to use locally assembled Peugeot cars as official vehicles.
We note the call for caution by the Petrol Retail Owners Association of Nigeria (PETROAN), which argued for the gradual phasing out of the importation of essential and sensitive products like petroleum products and pharmaceuticals to avoid potential shortages and consequent price increases.
But the policy seems to have taken this into account by stipulating that foreign goods and services can be imported where imperative but with the necessary waivers secured from the BPP.
The Organised Private Sector (OPS) yesterday threw its weight behind the Federal Government’s ‘Nigeria First’ policy.
It described the policy aimed at prioritising domestic products in government procurement and contracts as a move capable of stimulating the domestic economy.
Experts and other key stakeholders also continued to commend the initiative by the President Bola Ahmed Tinubu’s Administration, sustaining a train of popular positive review that has followed the policy since announcement on Monday.
The Federal Executive Council (FEC) on Monday approved the ‘Nigeria First’ economic policy. Minister of Information and National Orientation, Mohammed Idris, explained that with the policy, Nigeria comes first in all procurement processes; no foreign goods or devices that are already being produced locally will be procured without a clear and justified reason.
He said the policy aligns with President Tinubu’s objective of driving industrialisation, insulating the economy from global disruptions, and boosting local production in the country.
The Manufacturers Association of Nigeria (MAN) and Nigeria Employers’ Consultative Association (NECA), yesterday commended the ‘Nigeria First’ policy directive as a move capable of boosting local production and stimulating the economy.
Director General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir described the initiative as “a welcome development in the right direction”.
He described the policy as a cheering news and long-awaited relief to resilient Nigerian manufacturers, who, despite the tough economic environment, have demonstrated enduring faith in the potential greatness of the Nigerian economy.
According to him, MAN sees the initiative as a true and definite demonstration of the government’s commitment to promoting local industries, boosting economic growth, and creating jobs for Nigerians.
He said by giving preference to locally produced goods and services, the country can stimulate demand, increase capacity utilization, and attract investments into the manufacturing sector.
Director-General and Chief Executive, Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, described the policy as “a great move, a strategic economic imperative that the OPS has been clamouring for”.
According to him, over the past few years, NECA has urged the government to prioritise the patronage of made in Nigeria goods, as this will not only promote local production but will fundamentally reduce the pressure on foreign exchange (forex) demands.
He said the policy would stimulate local industrial growth and facilitate job creation and preservation among many others.
Former Chief Whip of the Senate, Senator Mohammed Ali Ndume also commended President Tinubu for the ‘Nigeria First’ policy, describing it as a courageous and landmark decision.
In a statement yesterday, Ndume said the bold initiative by President Tinubu would go a long way in promoting indigenous entrepreneurs, boost the local economy and generate employment for Nigerians.
He said: “It is heartwarming to hear that President Tinubu has taken this bold decision to ban imported goods that can be produced locally. This will be a major boost for indigenous businesses amid the slipping Nigerian economy.
“If implemented faithfully, it will shield our local producers striving to find their feet from being choked out of existence by established foreign investors who flood our market, unhindered, with goods that are cheaper and even substandard.
“With protection of local industries, there will be employment for our employable youths, the measure will also boost our Gross Domestic Product, (GDP) and the value of Naira will appreciate as their will be less strain on our foreign reserves, since the demand for foreign exchange by importers of such foreign goods would drastically reduce”.
Senior Special Assistant to President Bola Tinubu on Foreign Affairs, Ademola Oshodi, said the ‘Nigeria First’ policy is not only necessary but long overdue, stressing that the country must reduce its over-reliance on imported goods.
The Petroleum Products and Retail Outlet Owners Association of Nigeria (PETROAN) however warned that the policy must be implemented in a way that will not affect energy security.
Managing Director, HighCap Securities, Mr David Adonri, said the prioritization policy is a game changer and right step in the right direction.
“Government is the largest spender or consumer in the economy. This drives demand and if channeled to domestic businesses, will stimulate local supply and curtail import dependency. If seriously implemented, it could immediately serve as stimulus for full employment of the economy’s idle factors of production. It is a praiseworthy inward looking strategy if backed up further with policies to close the economy’s supply gap.
“There is a law in the US that any public work for which Congress appropriate funds, must be executed by American companies utilizing domestic labor and material resources. FEC should institutionalize this policy by forwarding it to the National Assembly for enactment into law,” Adonri said.
Ajayi-Kadir expressed belief that the policy will have a multiplier effect on the economy, leading to increased economic activity, improved Gross Domestic Product (GDP) growth, and enhanced competitiveness of Nigerian industries.
Furthermore, he said, from earlier survey, the effective implementation of such an initiative (as should be stipulated in the consequential executive order) would scale investments and potentially boost GDP by 56 per cent, reduce unemployment by 37 per cent and increase firms’ willingness to employ from 1.5 per cent to 22.6 per cent.
While commending the Federal Government for this move, MAN and NECA, however, urged the government to ensure thorough and effective implementation of the policy.
“Without implementation across all Ministries, Departments and Agencies (MDAs), the policy could suffer the fate of many like it,” Oyerinde said, for instance.
Ajayi-Kadir stressed the need for all tiers of government, private sector entities, and individuals to support this initiative by patronising made-in-Nigeria goods and services.
He said: “This is with a special focus on uniformed government agencies and institutions (including the military and police), the legislature and quite importantly, the Presidency.
“All government contracts should prioritise the patronage of made in Nigeria materials. So, the government needs to consult with manufacturers on the way forward to achieve effective and efficient implementation”.
Ajayi-Kadir said as the umbrella organisation for manufacturers in Nigeria, MAN earnestly look forward to working with the Federal Government and other tiers of government, their agencies and private sector organisations and businesses to actualise the Nigeria First project.
Stakeholders and experts were unanimous in optimism about the prospects of the new Nigeria First policy.
They agreed that it would contribute significantly to the national economic rejuvenation.
They said the policy shift would have considerable multiplier effects on several facets of the economy, including employment creation, foreign exchange accretion and stability, general economic growth and social stability, among others.
Those who spoke include Chairman, Nigeria Economic Summit Group (NESG), Mr. Niyi Yusuf; Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf and Managing Partner, Biodun Adedipe and Associates, Dr Biodun Adedipe.
NESG described the policy as a good idea, calling for conscientious implementation to optimise the benefits.
“Indeed, market access is probably as important as access to capital for businesses. This policy will open up more than N30 trillion of the 2025 budget for Nigerian businesses. That is a huge market!
“This can be a N50 trillion market opportunity for Nigerian businesses if state governments and local governments were to adopt the same policy.
“I hope implementation will be done conscientiously and compliance will be monitored effectively so that we can see the gains of this policy, knowing that policy execution is still a challenge for us.
“It will also be important for the government to prioritise procurement from small and medium enterprises (SMEs), which account for 84 per cent of employment, as we have with the Small Business Administration (SBA) in the USA, where 20 per cent of federal procurements are reserved for SMEs.
“Having similar initiative in Nigeria will foster SME growth, accelerate job creation by SMEs and reduce poverty,” the NESG Chairman said.
He, however, cautioned that steps must be taken to avoid complacency and the unintended consequences of creating uncompetitive local companies.
According to him, the procurement process must still prioritise quality, technical competence and overall competitiveness amongst the local companies to ensure that the country ultimately gets good value for money.
Dr. Yusuf described the policy as a commendable development that is capable of helping to revitalise the Nigerian economy.
He said the policy should be domesticated across all levels of government, from the federal to state and local governments for a profound impact.
“One of the ways we can help the revitalisation of the economy is to patronise what is made domestically.
“It helps to boost our Gross Domestic Product (GDP), create more jobs, has very considerable multiplier effects and helps to conserve foreign exchange.
“So, there are a whole lot of benefits if we can improve on the patronage of what is produced domestically.
“The procurement policy of the government is one of the most effective ways to drive patronage of goods that are produced domestically.
“This procurement policy should not only be at the federal level but also at the state and local government levels.
“It is a good thing that the federal government is taking the lead; it is a very good example,” Yusuf said.
The CPPE CEO called for the extension of such policy from goods to also services.
“We have situations where our services import can be as high as $10 billion annually.
“So, we should not only be looking at how we can accelerate import substitution in goods but also in services.
“We have young people who are doing well in things like technology, software development, creative, advertising concepts and others.
“Let’s ensure that we have a policy that encourages the patronage of our professionals across the sectors.
“We have qualified civil engineers, but our engineers are fast becoming spectators in their own economy, where many of the contracts are being given to foreign civil engineering companies.
“If the domestic engineers do not have the patronage, they cannot build the capacity, so we need to support them,” Yusuf said.
He added that beyond the procurement policy, the government should implement complementary trade policies that support the domestic industry, without excessively impacting global trade relations.
“For instance, we have no business importing furniture into this economy.
“We have enough furniture companies – quality furniture companies in Nigeria and yet we have a situation where people are exporting our raw wood to different countries. Those things should be addressed.
“So, we need to broaden the scope of this policy beyond procurement to cover some elements of trade policies so that we can have some measure of protection for our domestic manufacturers.
“I am not saying we should go to the extreme like as we have seen in the United States recently, but there has to be some deliberate policy to protect companies that are producing locally.
“We have no business importing uniforms; we have quality garment companies across the country,” Yusuf said.
He underscored the importance of effective implementation in the realisation of the goals of the new policy, noting that there had been many Executive Orders without any tangible implementation or proven results.
“This time around, I’m hoping that we will see much better implementation of this policy,” Yusuf said.
Adedipe listed several gains of such a robust policy, noting that it came a bit late but is still very important.
“If we truly desire to create jobs in Nigeria through government spending and drive inclusive growth, we must be intentional and deliberate in awarding government contracts to Nigerian entities, as different from foreign entities registered in Nigeria.
“The preconditions and requirements should be tailored and could have deliberate waivers.
“Where the competencies are lacking locally, an award to a foreign entity must mandate collaboration with a local entity in the same space.”
“Technology and special skills can thereby be transferred and locals can develop over time to become internationally competitive,” Adedipe said.
Experts last night expressed optimism about the major policy shift prioritising Nigerian businesses, goods, and services in all government-related economic activities.
The new approach, approved by the Federal Executive Council (FEC), was announced yesterday by the Minister of Information and National Orientation, Mohammed Idris.
Speaking to reporters at Aso Villa after the FEC meeting, Idris said: “This new direction places Nigeria, not foreign companies or imports, at the centre of our national development strategy.
“It seeks to foster a new business culture that is bold, confident, and unapologetically Nigerian.”
He quoted President Bola Ahmed Tinubu as saying: “We must start producing what we consume and end importation of what we have.”
They experts said the new policy would have considerable multiplier effects on several facets of the economy, including employment creation, foreign exchange accretion and stability, general economic growth and social stability, among others. (See box)
According to Idris, the Nigeria First policy will be implemented through an executive order being prepared by the Office of the Attorney-General of the Federation.
The policy is designed to overhaul how the Federal Government spends public funds, especially in procurement and contract awards.
Under the new policy, all ministries, departments and agencies (MDAs) must prioritise locally-made goods and services in their procurement processes.
“Non-compliance will attract sanctions, including the cancellation of procurement processes and disciplinary actions against responsible officers,” Idris said.
Sourcing foreign alternatives for products or services already available in Nigeria will now require written justification and a formal waiver from the Bureau of Public Procurement (BPP).
Idris outlined decisions approved by the Council to give immediate effect to the policy. These include:
• Revision of procurement guidelines: The BPP has been directed to urgently revise and enforce procurement rules to prioritise local content, including the creation of a local content compliance framework.
• Register of Nigerian providers: The BPP will maintain a register of high-quality Nigerian manufacturers and service providers who are regularly engaged by the federal government.
• Centralisation of procurement officers: All procurement officers posted to MDAs will be recalled and redeployed under the direct control of the BPP to ensure strict adherence to the new policy, without compromising efficiency.
• Mandatory audits: MDAs must immediately audit all current procurement plans and submit revised versions in line with the new directives.
• Sanctions for non-compliance: Breaches of the new policy will attract serious sanctions, including cancellation of procurement processes and disciplinary action against officers responsible for such.
Idris added that where viable local options do not exist, the policy requires that contracts must include provisions for technology transfer, local production, or skills development.
The minister cited the sugar industry, where, despite local capacity, Nigeria continues to import vast quantities.
Under the new directive, such practices would no longer be acceptable.
“The provision of quota allocations under the National Sugar Master Plan will now take into consideration each participant’s investment in backward integration and local production capacity,” Idris explained.
The ultimate goal of the policy, according to the minister, is to build capacity in domestic industries by ensuring that Nigerian firms are no longer sidelined in favour of foreign suppliers, especially in sectors where local alternatives are available.
“This is not just a policy shift, it is a reorientation of national priorities,” Idris said.
“Going forward, Nigerian industries will take precedence in all procurement processes.
“Where local supply falls short, contracts will be structured to build capacity domestically.
“The days when contractors acted merely as intermediaries importing foreign goods while local factories shut down are over.
“President Tinubu wants Nigeria to stop sitting on the sidelines and start producing what we consume.”
The move is part of the broader Renewed Hope Agenda championed by the Tinubu Administration, which emphasises economic resilience, job creation, and inclusive growth driven by local innovation and industrialisation.
The minister said the FEC would closely monitor the implementation of the new directive.
He believes it marks a turning point in how the government engages with the private sector and develops the economy.
