Abuja:The Federal Government has announced that the Nigeria First Policy has successfully reduced the price of a locally assembled vehicle from approximately N72 million to N35 million.
According to News Agency of Nigeria, Dr. Adebowale Adedokun, Director-General of the Bureau of Public Procurement (BPP), disclosed this information during a press conference in Abuja. The event, organized in collaboration with the National Automotive Design and Development Council (NADDC), focused on the policy’s implementation and its impact on the automotive industry.
Dr. Adedokun explained that the BPP purchased two units of vehicles after the policy’s announcement, effectively halving the cost per vehicle. He emphasized that the policy prioritizes Nigerian-assembled vehicles, directing all federal government entities to follow this directive. The policy aims to drive industrialization, create jobs, and engage technicians, moving beyond simple statements to a legislative framework.
Assemblers who violate the policy will face sanctions, including potential debarment. The BPP has also established a stakeholder steering committee and a monitoring system to evaluate the policy’s performance across the industry. While acknowledging the policy’s imperfections, Adedokun stated that challenges are being addressed daily.
Mr. Joseph Osanipin, Director-General of NADDC, urged assemblers to advance from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) operations to maintain government support. He highlighted the policy’s potential to boost demand for local components and contribute to meeting the 40 percent rule of origin under the African Continental Free Trade Area (AfCFTA).
Mr. Bawo Omagbitse, Chairman of the Nigerian Automobile Manufacturers Association (NAMA), described the policy as a strategic measure to encourage investment in the sector. Meanwhile, Mr. Anslem Ilekuba from the Automotive Local Component Manufacturers Association of Nigeria (ALCMAN) noted the interest of 3,500 Chinese manufacturers in collaborating with Nigerian counterparts and announced efforts to develop a digital platform for verifying spare parts.