Citing Threat to Local Industries, Nigeria Bans Foreign Procurement by MDAs Without Waiver
The Federal Government of Nigeria has announced a new directive banning all Ministries, Departments, and Agencies (MDAs) from engaging in foreign procurement without obtaining a written waiver.
The move is aimed at protecting and revitalizing the country’s local industries.
According to the directive, MDAs must now seek official clearance before procuring any foreign goods or services. The government emphasized that this policy is necessary to curb the continued erosion of domestic industries, which have struggled under the pressure of imported alternatives.
The Nigerian government explained that the new rule is part of a broader economic strategy to promote local content and encourage patronage of Nigerian-made products.
By restricting foreign purchases, authorities aim to boost domestic production, create jobs, and reduce the country’s dependency on imports.
“The unregulated procurement of foreign goods by government agencies poses a serious threat to our local industries,” a senior government official stated. “We must prioritize Nigerian-made products where they are available and suitable.”
Under the new system, any government agency seeking to procure foreign products must first apply for a written waiver. Approval will only be granted when it is clearly demonstrated that no viable local alternative exists. The waiver system is designed to ensure transparency and accountability in procurement processes.
The government also announced plans to enforce the policy strictly. Agencies found in violation could face penalties, including budgetary sanctions and administrative consequences for officials involved.
Stakeholders in the local manufacturing and services sectors largely welcomed the policy, expressing hope that it would lead to increased patronage of local goods. However, they urged the government to provide complementary support, such as improved infrastructure, access to credit, and favorable business policies to help local businesses scale up production.
“This is a welcome development, but it must be backed by action to strengthen our production capacity,” said a representative of the Manufacturers Association of Nigeria.
This policy marks a significant step in the government’s ongoing efforts to achieve economic self-reliance. Officials said it aligns with Nigeria’s broader industrialization goals and vision for sustainable development.
The government concluded by urging all MDAs to fully comply with the new directive and to incorporate local content as a key element in their operations going forward.
