Home Business Manufacturers Association Urges FG to Set Annual Local Content Targets in Key Sectors

Manufacturers Association Urges FG to Set Annual Local Content Targets in Key Sectors

by Radarr Africa

The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to introduce annual local content benchmarks for public procurement across key industries such as automobiles, textiles, pharmaceuticals, and agro-processing. The association said such a policy would encourage the use of Made-in-Nigeria goods, boost local production, and strengthen the country’s industrial base.

The call was made by Otunba Francis Meshioye, President of MAN, during the 5th Adeola Odutola Lecture and Presidential Luncheon held in Lagos on Thursday as part of the association’s 53rd Annual General Meeting (AGM). He said the policy should form part of the government’s industrial strategy to promote local manufacturing and reduce dependence on imported products.

Meshioye explained that the manufacturing sector in Nigeria continues to operate under very harsh conditions, worsened by the weak enforcement of existing local patronage laws and the growing influx of imported goods.

“It is unsustainable for Nigeria to continue subsidising the production and employment of other nations through unchecked imports while our own factories continue to record low capacity utilisation and serial underperformance,” he said.

He urged the government to establish strict enforcement and accountability measures that will compel Ministries, Departments and Agencies (MDAs) to comply with the proposed local content benchmarks. According to him, the Executive Orders 003 and 005, which were earlier designed to promote local patronage, failed to achieve their objectives due to a lack of monitoring and penalties for non-compliance.

Meshioye suggested that the Federal Government should introduce an annual assessment system where MDAs that meet or exceed local content targets are rewarded, while those that fail to comply face sanctions. He also called for the creation of a National Made-in-Nigeria Day, led by the Federal Ministry of Industry, Trade and Investment (FMITI), in collaboration with the National Orientation Agency (NOA), the Organised Private Sector of Nigeria (OPSN), and the media.

According to him, such a day would help promote local brands, enhance public awareness, and encourage Nigerians to patronise domestically produced goods.

Meshioye also proposed that Nigerian-made goods should be prioritised in all government offices, embassies, and trade missions as a show of confidence in the nation’s industrial capacity. He urged the Federal Government to provide more funding and authority to the Industrial Revolution Working Group, describing it as a vital policy engine needed to drive industrial innovation and reform.

“The ‘Nigeria First’ policy is not just an industrial ambition but a matter of national economic survival. We must back it with legislation and enforce it across all Ministries, Departments and Agencies. Compliance should be tied to performance metrics monitored by the National Bureau of Procurement,” he added.

Meshioye also raised concern about the country’s declining manufacturing contribution to the economy. Despite Nigeria’s rebased Gross Domestic Product (GDP) of $244 billion (N372.82 trillion), he said the sector’s share of the economy has continued to shrink, warning that the growth is “bigger but less productive and less industrialised.”

“The rebasing confirms that Nigeria’s economy is bigger, but less productive and less industrialised,” he said. “Without deliberate policies to protect and grow our local industries, Nigeria risks deepening its dependence on imports and missing the opportunity to create sustainable jobs.”

He stressed that adopting annual local content benchmarks would help the government save foreign exchange, stimulate domestic innovation, and build a stronger, more resilient economy.

“If we do not intentionally support our own manufacturers, we will not be able to compete globally. The ‘Nigeria First’ policy is about building national resilience, creating jobs at home, saving foreign exchange, and giving Nigeria the productive foundation it needs to be competitive globally,” he said.

The Nigeria First Policy, first announced by the Presidency in May 2025, directs all government MDAs to stop procuring foreign goods and services when local alternatives are available. The policy was one of the key resolutions adopted at a Federal Executive Council (FEC) meeting chaired by President Bola Ahmed Tinubu.

According to the Special Adviser on Media and Public Communication to the President, the Nigeria First Policy aims to stimulate domestic production, strengthen local content compliance, and reform government procurement processes.

Economic analysts say MAN’s recommendations align with the government’s broader industrialisation goals under the Renewed Hope Agenda. They argue that enforcing measurable local content targets will not only boost Nigeria’s manufacturing competitiveness but also attract new investments into local industries.

The Manufacturers Association has consistently urged the Federal Government to ensure that industrial policies are matched with action and accountability. With clear benchmarks and strict enforcement, experts believe Nigeria could build a self-sustaining industrial base capable of reducing imports and generating long-term employment.

You may also like

Leave a Comment