Nigeria’s federal government has tightened its “Nigeria First” rule for vehicles: ministries, departments and agencies (MDAs) must now buy cars only from licensed local assemblers or their authorised retailers. At the same time, the Senate says it will fast-track a National Automotive Industry Bill. If you buy, sell, import or assemble vehicles in Nigeria, here is what has been reported, what it means for ordinary buyers, and what remains unclear.
What the new vehicle procurement order says
According to a report dated 10 October 2026, the National Automotive Design and Development Council (NADDC) announced implementation details at a press conference in Abuja, alongside the Bureau of Public Procurement (BPP). The policy was signed by President Bola Tinubu. The core requirements are:
- Government MDAs may buy vehicles only from licensed local assemblers or their authorised retailers.
- A foreign-assembled vehicle can be bought only if the MDA proves no domestic alternative exists and obtains direct presidential approval.
- Vehicles supplied to government must carry traceable vehicle identification numbers (VINs) verified by NADDC.
- Suppliers operating outside licensed local assembly arrangements risk blacklisting and licence revocation.
- NADDC will keep a register of compliant assemblers, and the BPP is building a stronger monitoring and evaluation system. Non-compliant assemblers could face debarment.
This builds on the earlier framework signed in May 2026, when the BPP’s Director-General, Dr Adebowale Adedokun, said procurement entities must buy only from NADDC-approved local assemblers and that the BPP would not issue a certificate of no objection outside the approved list. Sanctions apply to false claims, misrepresentation or procurement outside the framework, under the Public Procurement Act.
Why government is doing this
Officials say reliance on foreign-assembled vehicles has strained foreign exchange reserves, exported jobs and suppressed domestic manufacturing. The idea is to use government buying power as a guaranteed anchor market for local assemblers. Per the reports, local plants have an installed capacity of 370,520 vehicles a year, and a single vehicle has about 3,000 components, from steel and plastics to glass, rubber and electronics, so a bigger local industry could pull in a wide supplier base.
Adedokun also gave a price example: a vehicle listed at about N72 million before procurement was reportedly obtained for “35 million” after the government bought two units. The report did not state the currency of the second figure, so treat it as an illustration of bulk-buying leverage, not a price any private buyer should expect.
The Senate and the National Automotive Industry Bill
Separately, a report dated 8 October 2026 says the Senate Committee on Industry, led by Senator Francis Adenigba Fadahunsi, visited PAN Nigeria Limited’s facilities in Kaduna with NADDC officials and pledged to fast-track the proposed National Automotive Industry Bill 2026. Its stated aims are protecting local assembly investments, promoting local content and conserving foreign exchange. Fadahunsi said: “Nigeria has become a dumping ground. So we have to reject it.”
The same report gave a reality check on local assembly:
- PAN’s installed annual capacity is 90,000 vehicles, but output has fallen because of high operating costs, exchange rate pressure, high borrowing costs and inconsistent policy.
- Local content once reached 40% under a more favourable policy environment but has fallen below 4%.
- PAN’s management argued that local assemblers cannot compete with firms importing fully built vehicles.
NADDC’s Director-General, Oluwemimo Joseph Osanipin, said the visit showed “we have the capacity.”
The tension: imports are rising anyway
While policymakers push local assembly, the import tide is moving the other way. Per the Nigerian Ports Authority (NPA), imported vehicles handled at Nigerian ports rose 42.5% in the first half of 2026, to 103,375 units from 72,568 a year earlier. The NPA linked the growth partly to lower levies and to transhipment activity at the Tin Can Island Port terminal. In July, the government cut import levies on new and used vehicles by up to 10% while introducing a new Green Tax surcharge, and the levy on used vehicles was reportedly reduced from 15% to 5% under the 2026 fiscal measures.
In short, two policies pull in opposite directions: cheaper imports for private buyers on one side, and a mandate that favours local assembly for government on the other. For more on the cost side, see our guide to import duty on cars in Nigeria.
What this means for ordinary car buyers
The procurement order applies to government purchases, not to your personal car. Private buyers can still choose tokunbo, new imported or locally assembled vehicles. Still, there are knock-on effects worth watching:
- Local brands may get a volume boost. Guaranteed government orders can help assemblers spread fixed costs, which could eventually support better pricing or availability. That is a possibility, not a promise.
- Dealer registration matters more. NADDC’s register of compliant assemblers and verified VINs may make it easier to check whether a seller is licensed.
- Spare parts could improve slowly. More local assembly can mean a deeper parts ecosystem, but with local content reportedly below 4%, do not expect quick change.
- Fleet and contractor buyers should check eligibility. If you supply vehicles to MDAs, being outside a licensed assembly arrangement now risks blacklisting.
Locally assembled vs imported: a practical comparison
- Price: Imported prices swing with exchange rates and clearing costs; local assembly also depends on imported kits and parts. Compare dealer quotes, not headlines.
- Warranty and servicing: Local assemblers and authorised dealers often offer warranty and a service network; tokunbo cars typically do not.
- Resale value: Established imported brands generally have a deeper resale market; confirm for any local model you consider.
- Financing: Some banks and dealers offer car loans on new vehicles; ask about deposit, interest and insurance requirements.
Open questions
The reports do not give an effective date, a transition period, or the full published text of the policy. It is also unclear how many MDAs will find suitable local models for every need, such as heavy-duty or specialised vehicles, and the presidential-approval exception will be tested in practice. Assemblers themselves say their biggest worry is whether government institutions will actually follow through and buy locally assembled vehicles to build a sustainable market.
Key takeaway
Government agencies must now buy locally assembled vehicles, lawmakers are pushing a National Automotive Industry Bill, yet vehicle imports are still surging. For private buyers, nothing is banned, so compare local and imported options on total cost, warranty, parts and resale value before you pay.
FAQ
Does the Nigeria First order ban imported cars for private buyers? No. As reported, it applies to government MDAs’ procurement.
Who verifies compliant assemblers? According to the announcement, NADDC keeps a register of compliant assemblers and verifies VINs, while the BPP monitors procurement.
Will local cars become cheaper? Possibly over time if volumes grow, but prices depend on exchange rates, parts costs and financing. Confirm current quotes with dealers.
Disclaimer: vehicle prices, import duties and specs change frequently in Nigeria. Always confirm current figures with the dealer or the official source, such as NADDC, the BPP or the Nigeria Customs Service, before buying.
