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FG to Sanction MDAs, Suppliers Over Breach of Local Vehicle Procurement Policy

spearnewsonline by spearnewsonline
May 22, 2026
in News
FG to Sanction MDAs, Suppliers Over Breach of Local Vehicle Procurement Policy
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The federal government says Ministries, Departments and Agencies (MDAs), as well as suppliers who violate the Nigeria First policy on local vehicle procurement, will face sanctions.

The Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, made this known during the signing of a policy framework on the procurement of locally-assembled automotive products in Abuja on Friday.

Mr Adedokun said the policy was in line with President Bola Tinubu’s directive on the implementation of the Nigeria First policy aimed at promoting local industries through public procurement.

According to him, procurement entities must source vehicles only from eligible local assemblers approved by the National Automotive Design and Development Council (NADDC).

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He said the policy established enforceable compliance requirements covering procurement planning, bidding documentation, contract awards and contract management processes.

“Any false claims, misrepresentation or procurement undertaken outside the approved framework will attract sanctions in line with the Public Procurement Act and other applicable regulations.

“The BPP will not issue a certificate of no objection outside the approved list of locally assembled manufacturers in the country,” he said.

The BPP boss said the initiative would strengthen accountability, promote value for money and support Nigeria’s industrial development agenda.

He added that public procurement should not only provide assets for government use but also stimulate local production, create jobs and reduce procurement abuses.

Mr Adedokun said that the policy had already attracted growing interest from global investors seeking to establish vehicle manufacturing plants in Nigeria.

He also said local assemblers had significantly improved the quality and affordability of vehicles produced in the country.

Also speaking, the Director-General of NADDC, Mr Joseph Osanipin, described the policy as a turning point for Nigeria’s automotive industry.

Mr Osanipin said prioritising locally assembled vehicles in government procurement would strengthen industrial capacity, create jobs and retain economic value within the country.

According to him, the policy will also ensure quality assurance and accountability through traceable vehicle identification number (VIN) compliance mechanisms.

He said NADDC would work closely with the BPP to verify eligible assemblers and maintain an updated register of compliant manufacturers.

The “Nigeria First” policy is an economic initiative launched by President Bola Tinubu that restricts federal Ministries, Departments, and Agencies (MDAs) from procuring foreign goods and services if they can be sourced or produced locally.

The BPP is mandated to prioritise local content, keeping an updated register of high-quality Nigerian manufacturers and service providers.

The MDAs can only procure foreign alternatives if they provide written justification and secure a formal waiver from the BPP.

(NAN)

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