The recent approval of the Renewed Hope Nigeria First Policy, by the Federal Executive Council, FEC, aimed at placing Nigerians at the heart of all business and economic activities whereby local industries will take precedence in all procurement processes as part of deliberate government’s measures to boost industrialization and production is not only necessary and timely but long overdue in order to reduce the nation’s perpetual over-dependence on imported goods.
Apart from being in the national interest, we note with satisfaction, that the initiative, if implemented faithfully and effectively, will certainly shield our domestic manufacturers especially the small and medium scale industries striving to survive in the face of fierce competition from multinationals and foreign producers, who flood our market with cheaper goods and products, boosts capacity, create employment, increase Gross Domestic Product, (GDP), strengthen value of the Naira as there will be less strain on foreign reserves as well as create ample opportunity for the sale of goods worth over N2trillion trapped in various warehouses nationwide due to low demand.
This new policy of the government must not be frustrated by the usual ‘Nigerian factor’ which, regrettably, has been responsible for the failure of most laudable public programmes such that the very officials charged with the task of enforcing same, on account of party affiliation, religion, ethnicity and other primordial factors undermine them. We strongly demand that enforcers should summon the courage and political will to ensure that Nigeria’s first initiative is implemented fully without minding whose ox is gored.
As a matter of fact, the country can no longer afford a situation whereby trillions of Naira of taxpayers’ funds are spent annually on the importation of various goods including foodstuffs, petrol, live animals and animal products, footwear, headgear, umbrellas, and sunshades, plastic, rubber, textiles and even on items she has a comparative advantage to produce which constitute a drain on the foreign reserves and hinders social, economic and technological transformation.
We view with concern the report by the National Bureau of Statistics, NBS, that Nigeria spent a whopping N21.51trn on the importation of various goods over the past four years, despite the government’s efforts to boost local production, which the new policy apparently aims to reverse for the nation’s continued economic survival.
However, according to the Minister of Information, Alhaji Mohammed Idris, under the Nigeria First Policy, the Bureau of Public Procurement (BPP) has been mandated to urgently “revise and enforce procurement guidelines to prioritise locally made goods and homegrown solutions; create a “Local Content Compliance Framework” for all government procurements; maintain a register of high quality Nigerian manufacturers and service providers regularly engaged by the federal government in addition to deployment of procurement officers to all MDAs should be reverted to BPP as the line agency without jeopardising efficiency.
Similarly, government’s ministries, departments and agencies, MDAs, have been directed not to procure foreign goods or services already available locally without justification and a written waiver from BPP and where no viable local option exists, contracts must include provisions for technology transfer, local production, or skills development as well as conduct an immediate audit of procurement plans and submit revised versions in line with the above directives.
To ensure total compliance, the minister hinted that breaches will attract severe sanctions, including cancellation of procurement and disciplinary action against responsible officers, expressing confidence that the initiative marked the beginning of a new era of local enterprise, self-belief, and national pride.
Coming at a time most industrialized nations of the world such as the US and China are protecting their economies through the imposition of sometimes outrageous tariffs, it’s not surprising that the new policy has been warmly embraced by most stakeholders with the organized private sector comprising the Manufacturers Association of Nigerian (MAN) and Nigeria Employers’ Consultative Association (NECA) and others, highlighting its several merits including a potential to boosting local production and stimulating the economy.
Director-General, MAN, Segun Ajayi-Kadir described the initiative as “a welcome development in the right direction, cheering news and long-awaited relief to resilient Nigerian manufacturers, who, despite the tough economic environment, have demonstrated enduring faith in the potential greatness of the economy. It is also a demonstration of the government’s commitment to promoting local industries, boosting economic growth, and creating jobs for citizens, insisting that by giving preference to locally produced goods and services, the country can stimulate demand, increase capacity utilization, and attract investments into the manufacturing sector.
Similarly, Director-General and Chief Executive, NECA, Mr. Adewale-Smatt Oyerinde, while embracing the policy stated that it is “a great move, a strategic economic imperative that the OPS has been clamouring for” over the past few years, which should prioritise the patronage of made in Nigeria goods, promote local production, fundamentally reduce the pressure on foreign exchange (forex) demands, stimulate local industrial growth, facilitate job creation and preservation among several other advantages.
In similar vein, the Managing Director, HighCap Securities, Mr David Adonri, welcomed the prioritization policy as a game changer and the right step in the right direction, noting that the government is the largest spender or consumer in the economy. “This drives demand and if channeled to domestic businesses, will stimulate local supply and curtail import dependency. If seriously implemented, it could immediately serve as a stimulus for full employment of the economy’s idle factors of production. It is a praiseworthy inward looking strategy if backed up further with policies to close the economy’s supply gap.
Elaborating on the issue, he stated: “There is a law in the United States that any public work for which Congress appropriates funds must be executed by American companies utilizing domestic labor and material resources. FEC should institutionalize this policy by forwarding it to the National Assembly for enactment into law,” he recommended.
We wholeheartedly agree with Anjorin’s viewpoint that the policy, if effectively enforced will have a multiplier effect on the economy, leading to increased economic activity, improved Gross Domestic Product (GDP) growth, and enhanced competitiveness of local industries and requires a legislation by the Senate and the House of Representatives for it to be binding on agencies and officials of federal, states and local governments as well as outlive the current administration, in pursuit of the national interest and greater good for the majority of citizens.
Most importantly, we challenge the government whose cardinal responsibility is the welfare and safety of the people to strive very hard in providing the necessary environment by tackling the current pervasive insecurity across the country, find a permanent solution to the perennial epileptic electricity supply, ensure regular supply of potable water as well as addressing all challenges militating against the manufacturing sector before now. Manufacturers and other private sector organizations and businesses, on the other hand should not leave any stone unturned in forging a close working relationship with the federal and other tiers of government, their agencies, in order to actualize the Nigeria First project. Our industries should produce quality products while consumers are encouraged to reciprocate this by patronizing locally manufactured goods and products.
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