TSF: Local Vehicle Procurement Policy Will Drive Industrial Growth, Employment

Oru Leonard 

The Tinubu Stakeholders Forum (TSF) has praised the Federal Government’s directive requiring ministries, departments and agencies (MDAs) to purchase vehicles from licensed local assemblers, saying the policy will strengthen domestic manufacturing, expand employment opportunities and accelerate the growth of Nigeria’s automotive industry.

The Forum said the directive, introduced under President Bola Ahmed Tinubu’s Nigeria First Policy, would ensure that public expenditure contributes more directly to local production, industrial expansion and national economic development.

In a statement jointly signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, TSF noted that Nigeria has considerable vehicle assembly capacity that remains largely underutilised despite the country’s substantial demand for automobiles.

The Forum cited figures from the National Automotive Design and Development Council (NADDC), which put the combined installed capacity of Nigeria’s automotive assembly plants at 370,520 vehicles annually.

According to TSF, prioritising locally assembled vehicles in government procurement would create a more stable market for domestic manufacturers, encourage higher production levels and attract investments across the automotive industry.

The Forum observed that Nigeria’s longstanding dependence on imported vehicles had limited the full potential of its domestic assembly plants, despite their capacity to contribute significantly to the country’s transportation and industrial needs.

It said the Nigeria First Policy offers an opportunity to reverse the trend by directing government spending towards Nigerian factories, supporting local employment and strengthening domestic manufacturing capabilities.

“Every vehicle purchased from a Nigerian assembly plant represents an opportunity to support employment, strengthen domestic supply chains and retain greater economic value within the country,” the statement said.

TSF added that increased vehicle assembly would generate economic benefits beyond the automotive sector by stimulating demand for locally produced steel, rubber, plastics, glass and vehicle components, as well as logistics, maintenance and other support services.

The Forum also welcomed the provision requiring MDAs seeking to purchase foreign-assembled vehicles to establish that suitable local alternatives are unavailable and obtain presidential clearance before proceeding.

It described the proposed use of vehicle identification number (VIN) verification through NADDC, alongside sanctions for violations, as essential safeguards to ensure that the policy achieves its intended objectives and prevents circumvention by government agencies.

TSF called on the Bureau of Public Procurement (BPP) and NADDC to enforce the directive consistently across all MDAs, stressing that implementation must be transparent and guided by competitive pricing, quality standards and value for public money.

The Forum further appealed to state governments to adopt similar policies favouring vehicles assembled in Nigeria, arguing that extending the initiative to the 36 states and the Federal Capital Territory would substantially increase demand for locally manufactured automobiles.

According to TSF, wider adoption of the policy by federal and state governments would give manufacturers greater market certainty, encourage investment in assembly facilities and create additional employment opportunities across the country.

It noted that a broader domestic market could also strengthen local supply chains and support the development of related industries, contributing to economic diversification and reducing dependence on imported finished vehicles.

However, the Forum urged Nigerian vehicle manufacturers and assemblers to match the government’s commitment with improved product quality, safety and technical compliance.

It stressed that locally assembled vehicles must demonstrate durability, reliability, affordability and dependable after-sales service to sustain government patronage and win the confidence of private consumers.

TSF maintained that the long-term success of the policy would depend on a combination of consistent government support, effective enforcement and the ability of domestic manufacturers to deliver vehicles that meet international standards.

The Forum concluded that linking public procurement to local production presents Nigeria with an important opportunity to turn its existing automotive assembly capacity into a major engine of industrialisation, job creation and sustainable economic growth.

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