ABUJA, Nigeria — The Bureau of Public Procurement (BPP) has warned ministries, departments and agencies (MDAs) that procuring vehicles from suppliers, manufacturers or importers not registered with the National Automotive Design and Development Council (NADDC) could lead to criminal prosecution.
The Director-General of the BPP, Dr Adebowale Adesanya, issued the warning on Friday, October 9, during a joint news conference with the NADDC in Abuja.
Adesanya said the bureau would not issue a “no objection” approval for vehicle purchases involving suppliers that had not satisfied the council’s registration requirements.
He warned that government agencies that ignored the rules could face prosecution, stressing that the policy was part of the Federal Government’s efforts to enforce the Nigeria First policy and strengthen domestic automotive production.
BPP Tightens Vehicle Procurement Rules
Adesanya said the NADDC was responsible for registering vehicle manufacturers and maintaining an updated database of approved suppliers, while the BPP oversees compliance with public procurement regulations.
The arrangement is intended to ensure that government agencies follow established requirements before awarding contracts for vehicles and automotive equipment.
Under the framework, procuring entities are expected to verify that suppliers meet the relevant standards and guidelines before proceeding with purchases.
The policy also seeks to reduce irregularities in public procurement and ensure government contracts support legitimate businesses operating within the approved automotive framework.
The BPP chief said the Public Procurement Act 2007 provides for preferential treatment for locally manufactured products. He explained that locally made vehicles could receive preference even when their prices were slightly higher than those of imported alternatives.
According to Adesanya, the policy is designed to encourage domestic manufacturers, support employment and stimulate investment in local production.
Nigeria First Policy Targets Local Production
The Nigeria First policy places emphasis on using government spending to support local industries and reduce dependence on imported products where domestic capacity exists.
In the automotive sector, the government wants public institutions to prioritise eligible vehicles assembled or manufactured in Nigeria, in line with applicable procurement guidelines.
The Federal Ministry of Information and National Orientation previously announced that federal procuring entities must comply with the policy and the NADDC’s criteria when purchasing vehicles and automotive equipment. The directive also provides for exceptions where the required local capacity or availability is lacking and an authorised waiver is granted.
Adesanya said partnerships between Nigerian firms and foreign manufacturers could help build local technical capacity and encourage technology transfer.
He also disclosed that the Bank of Industry would support the automotive sector with financing at lower interest rates, although the specific terms of such support were not detailed in the report.
Monitoring Committee To Track Compliance
The BPP director-general said a joint monitoring and evaluation committee had been established to track vehicle procurement by government agencies and identify possible violations.
He added that the Federal Executive Council had directed MDAs to submit monthly and quarterly reports on their procurement activities to the bureau.
According to Adesanya, the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission had also requested procurement records as part of efforts to monitor compliance.
The monitoring process is expected to improve transparency and help authorities identify agencies that fail to follow the prescribed procurement procedures.
For government institutions, the warning means that vehicle purchases must be handled with greater attention to supplier registration, procurement approvals and documentation.
NADDC Seeks Higher Domestic Vehicle Production
The Director-General of the NADDC, Joseph Osanipin, said Nigeria had the capacity to increase local vehicle production and reduce its dependence on imported vehicles.
He estimated that domestic production accounted for less than eight per cent of the vehicles used in the country. The council, he said, was working towards gradually raising local production to meet a much larger share of national demand.
Osanipin outlined a target of increasing local production through successive stages, eventually reaching 70 per cent of Nigeria’s vehicle requirements.
He said higher production volumes could help reduce vehicle prices as assemblers spread production costs across more units.
The council is also working with universities, polytechnics and technical institutions to commercialise automotive technologies developed locally.
Osanipin said 12 universities had designed buses under the NADDC’s Campus Shuttle programme. He also cited an electric tricycle developed at the council’s Zaria office and interest from a prospective buyer in purchasing about 300 electric vehicles.
Implications For Government Agencies
The BPP’s warning reinforces the government’s position that public vehicle procurement must comply with established registration and approval procedures.
MDAs will need to ensure that suppliers satisfy NADDC requirements and that the necessary procurement approvals are secured before contracts proceed.
The policy’s wider objective is to direct more public spending towards local assembly, manufacturing, employment and technology development.
However, its impact will depend on effective monitoring, compliance by government agencies and the ability of local manufacturers to supply vehicles that meet public-sector needs.
The BPP has made clear that agencies cannot treat the registration requirements as optional. Government buyers that proceed outside the approved framework risk facing legal consequences, while compliant procurement is expected to support the development of Nigeria’s automotive industry.
