By Stella Odueme
The Tinubu Stakeholders Forum (TSF) has commended President Bola Ahmed Tinubu’s directive requiring ministries, departments and agencies (MDAs) to purchase vehicles from licensed local assemblers, saying the policy will boost domestic manufacturing, generate employment and stimulate economic growth.
The forum said the directive, introduced under the Nigeria First Policy, would strengthen the country’s automotive industry by ensuring that government spending supports local production and promotes industrial 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 underutilised despite the huge domestic demand for automobiles.
The forum cited data from the National Automotive Design and Development Council (NADDC), which puts the combined installed capacity of Nigeria’s automotive assembly plants at 370,520 vehicles annually.
It argued that prioritising locally assembled vehicles in public procurement would provide a stable market for domestic manufacturers, encourage increased production and attract investments across the automotive value chain.
According to TSF, Nigeria’s longstanding dependence on imported vehicles has limited the potential of its domestic assembly plants to contribute fully to economic development.
“President Tinubu’s Nigeria First Policy presents an opportunity to reverse this trend by ensuring that government procurement supports Nigerian factories, sustains jobs and encourages the development of local 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.
The forum added that increased local vehicle assembly would benefit other sectors, including steel, rubber, plastics, glass, automotive components, logistics and maintenance services.
TSF also welcomed the requirement for MDAs seeking to purchase foreign-assembled vehicles to establish that suitable local alternatives are unavailable and obtain presidential approval before proceeding.
It described the introduction of vehicle identification number verification through NADDC, alongside sanctions for non-compliance, as essential measures to ensure that the policy delivers its intended benefits to licensed domestic assemblers.
The forum urged the Bureau of Public Procurement (BPP) and NADDC to enforce the directive across government institutions while ensuring transparency, competitive pricing and value for public funds.
It also called on state governments to adopt similar procurement policies, arguing that extending the initiative to the 36 states and the Federal Capital Territory would significantly expand the market for locally assembled vehicles.
According to the forum, broader adoption of the policy would provide manufacturers with greater market certainty, encourage investments in production facilities and create additional employment opportunities across the country.
TSF, however, urged local vehicle manufacturers and assemblers to justify the government’s support by maintaining high standards of quality, safety and technical performance.
It stressed that locally assembled vehicles must be competitive in durability, reliability, affordability and after-sales services to earn the confidence of government agencies and Nigerian consumers.
The forum maintained that sustained success would depend not only on government patronage but also on manufacturers’ ability to deliver vehicles that meet international standards.
“By linking public procurement to domestic production, the Federal Government has created an opportunity to transform existing automotive assembly capacity into a stronger driver of industrialisation, employment and economic diversification,” TSF said.