The Federal Government has reaffirmed its commitment to strengthening Nigeria’s local content development policy by reserving all public contracts valued below ₦20 billion exclusively for indigenous companies. This initiative aims to stimulate homegrown enterprise, enhance the participation of Nigerian firms in the national economy, and promote job creation.
The FG emphasised that this directive applies to all ministries, departments, and agencies (MDAs). It mandates that smaller-scale infrastructure, procurement, and service contracts be awarded to local firms instead of foreign entities. Officials emphasize that this policy shift not only supports small and medium-sized enterprises (SMEs) but also serves as a strategic measure to reduce capital flight and enhance domestic capacity in key sectors.
The government indicated that contracts above the ₦20 billion threshold may still be available to international firms; however, collaboration with local businesses will remain essential for technology transfer and knowledge sharing.
Industry analysts have deemed this measure timely, especially considering the rising unemployment levels and the urgent need to diversify Nigeria’s economic base. By limiting lower-value contracts to local entities, the government aims to create more opportunities for indigenous contractors, foster competition, and enhance the quality of local service delivery.
Stakeholders stress the importance of ensuring transparency, fair bidding processes, and timely payments to contractors, asserting that these factors will significantly influence whether the policy achieves its intended goals.
This development signals the Government’s broader agenda to prioritise Nigerian businesses, safeguard domestic interests, and gradually strengthen the resilience of the national economy.
