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The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to urgently enact the ‘Nigeria First’ policy into law, stressing that without legal backing, the policy risks becoming another failed executive directive. The call was made on Thursday by MAN’s Director-General, Segun Ajayi-Kadir, at the 2025 BusinessDay Manufacturing Conference held in Lagos.
Ajayi-Kadir emphasized that transforming the Nigeria First policy into a binding law is essential to ensure enforceability across all tiers of government and within the private sector. He said this would institutionalize the prioritization of locally manufactured goods in public procurement, thereby bolstering local industries, creating jobs, and supporting the national economy.
“Make the Nigeria First Policy a binding law, and punitive measures should be put in place for violators. This is critical to give the policy legal standing, ensuring transparency, public awareness, and enforceability across government institutions and the private sector,” the DG stated.
The ‘Nigeria First’ policy is a public procurement initiative that directs all federal ministries, departments, and agencies (MDAs) to prioritize Nigerian-made goods and services in their budget allocations and procurement contracts. It aligns with Executive Orders 003 and 005 issued in previous administrations, which aimed to promote local content.
However, Ajayi-Kadir noted that previous policies fell short of expectations due to the absence of legislative support, poor monitoring, and lack of institutional enforcement.
“Executive Orders 003 and 005 failed to make a meaningful impact due to their non-binding nature. If the Nigeria First policy remains without legal teeth, it risks going down the same path,” he warned.
The MAN DG painted a grim picture of Nigeria’s manufacturing landscape. He revealed that 767 manufacturing companies shut down in 2023 alone, while the industry recorded the loss of over 18,000 jobs in 2024. He attributed this downturn to persistent challenges including:
Soaring interest rates
Unstable exchange rates and forex scarcity
Rising energy costs
Infrastructure decay
Policy inconsistencies and regulatory bottlenecks
“These challenges have made manufacturing in Nigeria increasingly unviable. If we fail to nurture our own industrial base, we will remain perpetually dependent on foreign economies,” he said.
Industry experts say the manufacturing sector’s contribution to Nigeria’s Gross Domestic Product (GDP) has declined significantly over the past five years. According to the National Bureau of Statistics (NBS), the sector accounted for only 8.23% of GDP in Q4 2024, down from 9.4% in 2021.
As part of its broader industrial revival strategy, MAN made a series of policy recommendations at the conference aimed at removing structural barriers to manufacturing and promoting industrial competitiveness. These include:
Legal Framework for Nigeria First Policy
MAN urged lawmakers to pass the policy into law and assign the Bureau of Public Procurement and the Ministry of Industry, Trade and Investment as primary regulators to monitor compliance.
Resolve $2.4bn Unsettled FX Forwards
Ajayi-Kadir called on the Central Bank of Nigeria to urgently clear the backlog of $2.4 billion in unsettled foreign exchange (FX) forwards, which he said has crippled manufacturers’ ability to import raw materials and machinery.
Reverse Port Charges and Levies
The association demanded that the government reverse the recent 15% increase in port charges by the Nigerian Ports Authority (NPA) and abolish the suspended 4% Free-on-Board (FOB) levy on exports, which further discourages competitiveness.
Accelerate Power Sector Reforms
MAN also emphasized the need to expedite the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, which is expected to add 3.6 gigawatts of power to the national grid upon completion. This, the association said, would significantly lower energy costs for industries.
Adopt the 2024 MAN Summit Report
Ajayi-Kadir proposed that the Federal Government adopt the recommendations of the 2024 National Manufacturing Summit Report as a template for developing Nigeria’s industrial policy. He noted that several of the report’s findings are based on empirical data and stakeholder consultations.
“A nation without a clear industrial policy is like a ship without a rudder. We must not continue to operate blindly,” he said.
Reacting to the association’s proposal, the Lagos Chamber of Commerce and Industry (LCCI) endorsed MAN’s position, stressing that a legally enforced local procurement policy would promote backward integration, attract investment, and drive industrial growth.
Speaking to our correspondent, LCCI Director of Research, Dr. Ayodele Durojaiye, said:
“The Nigeria First policy, if passed into law and strictly enforced, could serve as a game changer for Nigeria’s manufacturing rebirth. It must not end as another empty executive pronouncement.”
Similarly, the Nigerian Economic Summit Group (NESG) noted that institutionalizing such a law would compel MDAs to be accountable in procurement processes, eliminate leakages, and ensure local manufacturers are not sidelined in favor of foreign contractors.
As of press time, the Ministry of Industry, Trade and Investment has not issued an official response to MAN’s demand. However, a senior official who spoke under condition of anonymity said the ministry was reviewing MAN’s proposal and might recommend it for legislative action.
“We recognize the importance of local content and are currently evaluating strategies to give procurement policies more force through parliamentary processes,” the official said.
With a manufacturing sector grappling under the weight of macroeconomic instability, policy inconsistency, and global supply chain disruptions, industry stakeholders believe making the Nigeria First policy a law is no longer optional, but a necessity. The call by MAN has reignited the debate over how best to revive Nigeria’s dormant industrial base and achieve true economic independence.
If the government heeds this call, it could set a new course for job creation, economic diversification, and industrial transformation in line with the Renewed Hope Agenda of President Bola Tinubu.