Nigeria's federal procurement regime is tightening for vehicle purchases, with Ministries, Departments and Agencies (MDAs) now required to show compliance with local content rules before buying cars.
Oluwatobi Ajayi, chief executive officer and co-founder of Nord Automobile, described the change as "very good news" for the automotive industry during the latest Drinks & Mics episode themed "Cars, Homes & Wahala: Why Is the Nigerian Dream So Expensive?"
He said a policy letter signed by the Secretary to the Government of the Federation about two to three weeks earlier directs procurement directors across MDAs to submit details of all vehicle purchases to the Bureau of Public Procurement (BPP). Under the directive, Vehicle Identification Numbers (VINs) must be traced to local production, and buying a car not made in Nigeria now effectively carries criminal liability.
Ajayi clarified that the measure applies to federal MDAs within the executive arm of government and does not cover other arms such as the National Assembly.
The BPP directive requires automotive procurement by MDAs and other procuring entities to be processed only with evidence of a Letter or Certificate of "No Objection" from the bureau. MDAs must also compile and submit details of all vehicles in their pools from 2020 to date, including date of purchase, purchase price, brand, model, VIN, evidence of payment and current status.
The information must be submitted no later than three months after the end of each financial year through the Automobile Procurement Records Submission platform provided by the BPP. Quarterly procurement reports must also contain an itemised breakdown of automotive purchases showing local content compliance. Failure to comply will lead to rejection of procurement approval requests and sanctions against defaulting accounting officers and procuring entities. The directive takes immediate effect.
The move forms part of the Federal Government's push to increase the use of locally produced goods and services in public procurement. President Bola Tinubu announced the Nigeria First Policy in May 2025, directing MDAs to stop procuring foreign goods and services where suitable local alternatives exist, except with a written waiver from the BPP.
