In a fresh zest, the Federal Government, announced recently a new policy framework tagged the ‘Renewed Hope Nigeria First Policy’ as approved by the Federal Executive Council, FEC.
Just as the Minister of Information and National Orientation, Mohammed Idris, was making public the policy which he said seeks to foster a new business culture that is bold, confident, and very Nigerian, not a few Nigerians expressed differing positions on the fresh direction.
Looking through the policy, it shows promise in prioritising locally made goods and homegrown solutions in all government procurements. This was explicit as Idris noted that the FG will prioritise Nigeria’s interest at the centre of all public procurement and business activity, with a strong emphasis on empowering local industries and reducing dependency on imports.
The policy aims at strengthening Nigeria’s domestic economy and promoting local content. With the new focus, the Bureau of Public Procurement, BPP, will revise and enforce procurement guidelines to favor local suppliers and procurement rules prioritising Nigerian-made goods and homegrown solutions across all Ministries, Departments, and Agencies, MDAs,.
Indeed, the BPP has been further empowered with new impetus as no procurement of foreign goods or services will be allowed without justification except a written waiver from the BPP is authorized. The BPP will create a comprehensive compliance mechanism to ensure all government procurements adhere to local content requirements.
Besides, all MDAs must conduct an immediate audit of procurement plans and submit revised versions in line with the policy. Breaches will result in disciplinary action and possible cancellation of the procurement process.
Where foreign contracts are unavoidable, the MDAs must include provisions for technology transfer, local production, or capacity development in Nigeria.
It is noteworthy that there is a proviso that breaches of the policy will attract sanctions, including cancellation of procurement and disciplinary action against any erring officers.
With the sweeping powers, BPP is expected to ensure full compliance with the FG procurement policies and impose necessary sanctions for non-compliance.
It is instructive to note that India and China that have been able to beat the development trap did so through clear-cut policies, meticulously executed and not mere rhetorics.
Nigeria unequivocally do not have the production capacity to meet internal demands. Nigeria’s labour productivity is in the negative.
However, success of the policy according to Lagos Chamber of Commerce and Industry, LCCI, “depends on a bold, coherent, and well-coordinated execution strategy that addresses deep-rooted structural barriers” in the Nigerian economy.
LCCI, therefore, advised that the policy be grounded in economic realism, legal consistency, and institutional integrity.
In addition, domestic industries must be supported to become competitive through targeted infrastructure investments, access to affordable credit, and an enhanced ease of doing business environment.
In this vein, incentives such as tax reliefs, research and production grants, and backward integration support should be prioritised for sectors with strong local potential, especially agro-processing, manufacturing, and ICT.
To ramp up local production, current challenges facing the manufacturing sector, like high cost of generating power, rising cost of logistics, high cost of credit, and a rather harsh regulatory environment, must all be resolved.
We among other things align with the LCCI position that the Nigeria First policy should align with regional and continental trade agreements, especially, the African Continental Free Trade Area, AfCFTA.
On the consumption side, the government must lead by strictly enforcing local content rules in procurement at all levels.
We, therefore, call for transparent, merit-based, and inclusiveness of SMEs to ensure fair competition across board. The policy should be backed by enforceable legislation and harmonised across MDAs to avoid contradictions and regulatory loopholes.
It is not the first policy of its kind in our national life. It is imperative avoid poor implementation and policy somersaults or reversal that has often been the bane of several laudable policies in the past.
The Nigeria First policy will engender expansion of local production capacity, create jobs, as well as boost and conserve our long-depleted foreign reserves.
Implementation holds the key!
