FG vehicle rules could force billions in government car spending to local automakers
The Federal Government’s tighter vehicle procurement rules for Ministries, Departments and Agencies (MDAs) could give local automakers a fresh boost by requiring government entities to demonstrate compliance with local content requirements before purchasing vehicles. The post FG vehicle rules could force billions in government car spending to local automakers appeared first on Nairametrics .
The Federal Government has introduced stricter vehicle procurement rules for Ministries, Departments and Agencies (MDAs), potentially benefiting local automakers by mandating compliance with local content requirements. Oluwatobi Ajayi, CEO of Nord Automobile, welcomed the news, calling it a positive development for the industry.
The directive requires procurement directors to submit VINs to the Bureau of Public Procurement (BPP) to verify and trace locally produced vehicles. Ajayi emphasized that the move is a more stringent enforcement of local-content requirements in government vehicle purchases. The BPP directive requires MDAs to provide evidence of a Letter or Certificate of "No Objection" for automotive procurement and compile records of vehicles in their pools, including purchase details and VINs, by March each year.
Failure to comply may result in rejected procurement approvals and sanctions. This policy aligns with President Bola Tinubu's Nigeria First Policy, which aims to reduce reliance on foreign goods in public procurement.
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