The decision of the Federal Executive Council (FEC) to give impetus to made-in-Nigeria goods/products is a step in the right direction. The new policy offers will hopefully stimulate economic growth. Tagged ‘Nigeria First’, the policy will prioritise the use of home-grown manufactured products in all government’s procurements. The Minister for Information and National Orientation, Mohammed Idris, who disclosed this after last week’s FEC meeting in Abuja, said the policy would soon be backed by Executive Order from President Bola Tinubu. In practical terms, the policy means that, henceforth, ‘made-in-Nigeria’ goods and services will come first in all procurement processes, and no foreign goods or devices will be procured “without a clear and justified reason.” The policy also seeks to foster a “new business culture” that will be bold, confident, but also very Nigerian. Under ‘Nigeria First’ initiative, the government will invest in people and in Nigerian industries by changing how the government spends money and builds the economy.
Going forward, Nigerian industrial sector will take precedence in all procurement processes, and where local supply falls short, contracts will be structured to build capacity locally. Henceforth, contractors will no longer serve as intermediaries in sourcing foreign goods. The policy change will save local manufacturers from imminent collapse. Consequently, the government has directed the Bureau of Public Procurement (BPP) to revise and enforce fresh guidelines to favour local manufacturers and service providers. It is good that the Manufacturers Association of Nigeria (MAN) has lauded the policy and even predicted that it would increase investments and boost the Gross domestic Product (GDP) by 56 per cent, reduce unemployment by 37 per cent and increase employment from 1.5 per cent to 22.5 per cent.
It is likely that President Tinubu will use the ‘Nigeria First’ policy to drive industrialisation and insulate the economy from global disruptions and boost local production. Instructively, Nigeria had not been short of good policies which were not fully implemented. We believe that the new policy will not suffer from implementation fatigue like previous ones.
However, as good as the policy looks on paper, government officials, including the president, must lead from the front by their own example of patronising locally manufactured goods, against the present unbridled taste for foreign products. In essence, the government should walk the talk. That is how good policies that have turned around the economies of other nations achieved their objectives. Charity must, indeed, begin at home. Most developed nations have prioritized domestic production as a core economic strategy.
Examples include the United States, where President Donald Trump has unleashed an avalanche of tariffs in order to boost made-in-America products. Other countries are Germany, China, Japan, Sweden, South Korea, Switzerland, among others.
These countries are known for their strong manufacturing sectors and export-oriented economies to support their domestic industries, attract investments and promote innovation. Germany, for example, is a global leader in automobile engineering, and all government officials, as a matter of policy, drive vehicles made in Germany.
Japan has also prioritised domestic production, especially in sectors like electronics, automotive and robotics. Their export-oriented strategy and policies that encourage innovation and investment, research and development, have made the country a major player in global trade. Undoubtedly, the advantages of patronising locally made goods cannot be overemphasised. The economy of any nation grows rapidly when locally made goods are consumed by the citizens and exported. We must intentionally emulate these nations in our new resolve to patronize made-in-Nigerian goods.
The ‘Nigeria First’ policy will pave the way for better allocation of resources, increase in investment, promotion of economic stability, and enhancement of overall economic performance. It will also lead to more job creation and restoration of confidence in the domestic market. It will equally make locally manufactured goods more competitive in the global market, provided the goods and services are of high quality and meet all acceptable international standards. To make ‘Nigeria First’ policy to succeed and enhance the competitiveness of locally manufactured goods in the global market, a multi-prong approach has become imperative.
This includes focusing on government’s support, development of roads, rails and ports logistics, as well as tackling power supply challenges. It will also require technological advancement and brand strategies. Government should reduce other barriers for businesses as they affect the micro, medium and small enterprises, and encourage the consumption of locally manufactured goods. Besides, the government at all levels should design incentives for entrepreneurs. The federal government should leverage trade agreements like the African Continental Free Trade Agreement (AfCFTA) and foster the flow of goods and services across the continent and beyond.