Nigeria's New Vehicle Rules to Boost Local Automakers

The Federal Government's new vehicle procurement rules for Ministries, Departments, and Agencies (MDAs) could significantly benefit local automakers by enforcing local content compliance before vehicle purchases. Oluwatobi Ajayi, CEO and co-founder of Nord Automobile, praised the directive as a major advancement for Nigeria's automotive sector.

The rules require procurement directors to submit vehicle purchase details to the Bureau of Public Procurement (BPP), utilizing Vehicle Identification Numbers (VINs) to ensure vehicles are locally produced. This directive specifically targets Federal Government MDAs and does not apply to other government branches, such as the National Assembly.

Additionally, MDAs must provide a comprehensive record of all vehicles acquired since 2020, including purchase details and current status, within three months after each financial year. Non-compliance will result in rejected procurement requests and sanctions against responsible officers.

This initiative is part of President Bola Tinubu's Nigeria First Policy, announced in May 2025, which encourages the use of locally produced goods and services.