Federal Government Prioritizes Local Businesses Through Nigeria First Policy

On May 5, 2025, the Federal Executive Council approved a new policy aimed at promoting Nigeria’s economic self-reliance through the empowerment of local businesses. This move, referred to as the "Nigeria First" policy, signals the government’s renewed focus on strengthening domestic industries and reducing the country’s long-standing dependency on foreign goods and services. As Nigeria continues to navigate economic challenges, this initiative is seen as a step toward building a more resilient and inclusive economy by placing local businesses at the center of national development efforts.

 

The "Nigeria First" policy requires all Ministries, Departments, and Agencies to prioritize the procurement of goods and services produced in Nigeria. This means that whenever a locally produced alternative exists and meets the required standards, government bodies are obligated to choose it over foreign imports. If there is a reason to opt for a foreign option, the agency must obtain a formal waiver from the Bureau of Public Procurement. This waiver process is intended to ensure accountability and reduce unnecessary reliance on external suppliers.

 

Alongside this requirement, the government is also mandating that agencies revise their procurement policies to reflect this local-first approach. The Bureau of Public Procurement will play a key role by maintaining a register of certified Nigerian manufacturers and service providers. This list will guide public institutions in identifying reputable local sources when making procurement decisions. The emphasis is not only on supporting local businesses but also on ensuring that quality and credibility are not compromised.

 

To reinforce the impact of the "Nigeria First" policy, the government has introduced tax reforms that aim to ease the burden on small and medium-sized enterprises. Businesses with an annual turnover of fifty million naira or less are now exempt from several major taxes, including Value Added Tax, withholding tax, and corporate income tax. These exemptions are designed to allow smaller businesses to redirect funds into operations, workforce expansion, and innovation. For many entrepreneurs, especially those in the early stages of growth, these changes may provide much-needed breathing room.

 

Access to credit has also been identified as a barrier for many Nigerians trying to build businesses or improve their livelihoods. In response, the government has initiated plans to create a National Credit Guarantee Company. This institution will be tasked with providing loans to citizens and businesses, with special attention given to women and youth. By expanding access to finance, the administration aims to stimulate entrepreneurial activity and contribute to long-term economic development across the country.

 

One of the most significant features of the policy is its focus on rural entrepreneurship. The government has acknowledged that a large portion of Nigeria’s population lives in rural communities and that any inclusive economic policy must address their needs. The new approach supports the development of agricultural businesses and rural-based enterprises, aiming to create sustainable livelihoods, reduce poverty, and curb rural-to-urban migration. By investing in these areas, the government hopes to stimulate local economies and improve the quality of life outside major urban centers.

 

Despite the optimism surrounding these announcements, the question of implementation remains a major concern. Nigeria’s business environment has historically been hindered by issues such as policy inconsistency, corruption, and infrastructural deficits. The success of the Nigeria First policy will depend on how effectively these challenges are addressed. Local producers must also be supported to meet rising demand while maintaining competitive pricing and high quality standards. Without deliberate support and proper enforcement, the policy risks falling short of its goals.

 

Nevertheless, the introduction of the Nigeria First policy reflects a growing awareness that economic growth must be driven from within. By prioritizing local procurement, providing tax relief to small businesses, and expanding access to credit, the government is attempting to lay a stronger foundation for inclusive growth. If well implemented, these measures could open new doors for entrepreneurs, support job creation, and foster a more self-reliant national economy. For millions of Nigerians, especially those operating small businesses or living in underserved communities, this could mark the beginning of more visible and meaningful participation in the country’s economic future.