Home Business News BUSINESS & ECONOMY Nigeria First policy not a ban on foreign investors, says BPP

Nigeria First policy not a ban on foreign investors, says BPP

Key points

  • Dr. Adebowale Adedokun, Director-General of the Bureau of Public Procurement (BPP), says the Nigeria First policy prioritizes local firms without excluding foreign investors.
  • The policy applies domestic preference to sectors including automobile, furniture, information technology, and apparel.
  • Local firms must still meet global quality standards and remain competitive to receive consideration.
  • Projects valued below N50 million will soon be reserved exclusively for SMEs within the local community where the project is located.
  • The BPP is enforcing stricter contractor classification to ensure firms grow progressively based on their verified capacity.

Main Story

The Bureau of Public Procurement (BPP) has clarified that the federal government’s Nigeria First policy is a strategic measure to bolster domestic industry rather than a move toward isolationism.

Speaking in Abuja on Sunday, May 10, 2026, Director-General Dr. Adebowale Adedokun explained that the policy grants qualified local firms the “first offer of refusal” for government projects.

He emphasized that while the law allows for domestic preference, Nigeria remains an active participant in the global economy, and foreign businesses are still permitted to compete where local capacity is unavailable or non-competitive.

Adedokun noted that the policy is being implemented through legal instruments rather than just executive orders, giving it stronger enforcement backing.

The bureau is currently sectorizing these preferences, with a strict mandate that government agencies must prioritize Nigerian-assembled vehicles and locally manufactured furniture and apparel.

Furthermore, a new community-based procurement initiative will reserve all projects valued under N50 million for small and medium enterprises (SMEs) situated within the immediate locality of the project, preventing outside contractors from taking smaller community jobs.

The Issues

  • Local firms often struggle to match the technical scale of international conglomerates, making “capacity building” a critical prerequisite for the policy’s success.
  • There is a risk that “domestic preference” could be misinterpreted as a guaranteed contract, potentially leading to a drop in quality if competitiveness is not strictly enforced.
  • Implementing community-based procurement for projects under N50 million requires robust local monitoring to ensure funds are used effectively by neighborhood SMEs.

What’s Being Said

  • “We are not shutting out foreign businesses. The law allows us to have what is called domestic preference,” stated Dr. Adebowale Adedokun.
  • “The option we are giving is to say, can we give Nigerians the first offer of refusal in partaking in those projects?” Adedokun added.
  • Regarding the N50 million cap, he noted: “A contractor from Abuja cannot go to another community and collect such jobs.”

What’s Next

  • The BPP will soon officially unveil the operational guidelines for community-based procurement across the country.
  • Increased collaboration with agencies like NASENI and the Bank of Industry will continue to support local production in the solar and electric vehicle sectors.
  • Stricter contractor classification will be enforced to ensure firms only bid for projects that match their documented experience level.

Bottom Line

The Nigeria First policy seeks to turn public procurement into a lever for local industrial growth, provided Nigerian firms can meet the high standards required to compete on the global stage.

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