EV Makers Accuse FG Agencies of Double Standards Over Nigeria First Policy, Foreign Vehicle Purchases

EV Makers has accused FG Agencies of double standards over Nigeria First Policy and Foreign Vehicle Purchases.

NewsOnline Nigeria reports that electric vehicle (EV) manufacturers and marketers in Nigeria have accused government ministries, departments and agencies (MDAs) of applying double standards in implementing the Federal Government’s Nigeria First policy, alleging that public institutions continue to patronise foreign-made vehicles despite the directive to prioritise locally produced alternatives.

The policy is designed to promote Nigerian-made and locally assembled products through public procurement, potentially creating a significant market for domestic manufacturers.

However, industry players say continued purchases of foreign vehicles, including Chinese-made models, raise questions about the consistency of the government’s commitment to supporting local production.

The concerns come as Nigerian EV businesses seek greater access to government contracts to support investments, expand assembly operations and develop the country’s electric mobility value chain.

Speaking with Nairametrics, Chairman of Roxettes Group, Dr Kaycee Orji, criticised what he described as inconsistencies between the government’s policy pronouncements and procurement practices.

“Our major concern is the double standards in government policy and the failure to practise what the government preaches,” Orji said.

He argued that while the Nigeria First policy encourages public institutions to patronise domestic producers, some government officials continue to use foreign-made vehicles, while MDAs purchase imported alternatives.

“I do not think that makes sense,” he added.

Orji said government procurement could provide local EV manufacturers with a dependable market, enabling them to expand production, attract investments and develop supporting infrastructure.

He called for financing arrangements that would make electric vehicles more affordable for drivers and fleet operators, alongside incentives for local assembly, technology transfer and job creation.

He also advocated import-duty relief for essential manufacturing equipment and components, as well as increased private investment in charging stations, renewable energy and battery storage.

According to him, a coordinated approach to affordability, financing, infrastructure and production costs would improve the competitiveness of Nigerian EV businesses and strengthen their ability to compete with imported vehicles.

Abuja-based EV marketer, Engr. Raheem Adebolu, also questioned the conditions under which Nigerian manufacturers are expected to compete with established international vehicle producers.

“The Chinese compete with local producers when they don’t have the same production costs like we do in Nigeria. How do they want us to compete?” Adebolu asked.

His concerns reflect the cost pressures facing domestic manufacturers, including expenses associated with importing components, securing financing, establishing assembly facilities and developing after-sales service networks.

Also speaking, Abuja-based automotive technician Cyril Baros of Auto Mobility Services highlighted the differences between established international automotive supply chains and the operating conditions facing Nigerian assemblers.

“Chinese automotive manufacturers operate in a market with substantial production capacity and established supply chains. Nigerian assemblers, by comparison, may face additional costs arising from infrastructure constraints, foreign exchange exposure and dependence on imported components,” Baros said.

These differences, he explained, could influence the final prices of vehicles offered to government agencies and private buyers, potentially affecting the ability of local businesses to secure procurement contracts.

During visits to selected MDAs, including offices at the Federal Secretariat in Abuja, Nairametrics sought to establish why foreign-made vehicles continue to feature in government procurement and how familiar officials are with locally assembled electric vehicles.

Some civil servants who spoke anonymously suggested that procurement decisions could be influenced by vehicle prices, availability and the production capacity of local manufacturers.

A civil servant at the Federal Ministry of Health suggested that Chinese-made vehicles could be securing government contracts because of their relatively lower prices compared with locally produced alternatives.

The official, however, expressed hope that Nigerian manufacturers would become more competitive as the domestic automotive industry develops.

Another civil servant, identified as Mr Muhammed, said he was unfamiliar with several Nigerian EV manufacturers and the vehicles they produce.

Nairametrics made several attempts to reach the National Automotive Design and Development Council (NADDC) for comments on the concerns raised by industry players, but the attempts were unsuccessful as of the time of filing this report.

The controversy comes amid broader Federal Government efforts to encourage alternative-fuel vehicles, promote local manufacturing and reduce transportation costs.

In May 2025, the Presidency announced plans to prevent MDAs from procuring foreign goods and services where local alternatives exist, as previously reported by Nairametrics.

The effectiveness of the Nigeria First policy will depend partly on how government agencies translate the directive into procurement plans, tender specifications and contract awards.

In April 2026, the Federal Government also announced a waiver of import duties on electric vehicles, mass-transit buses and manufacturing machinery as part of measures intended to ease economic pressures and encourage investment.

While the measure could reduce some costs for vehicle importers, industry players argue that domestic manufacturers also require targeted incentives to build production capacity and compete effectively.

In August 2026, President Bola Tinubu announced that state governors had agreed to leverage compressed natural gas (CNG) and electric vehicles to reduce transportation costs nationwide from October 1, 2026.

The initiative builds on the Presidential CNG Initiative launched in 2023 following the removal of the petrol subsidy.

Meanwhile, a legislative proposal known as the Electric Vehicle Transition and Green Mobility Bill, sponsored by Senator Orji Uzor Kalu, seeks to establish a framework for encouraging local participation in Nigeria’s electric vehicle industry.

The proposed legislation includes requirements for foreign EV manufacturers to operate through registered local partnerships, establish assembly plants within three years of commencing operations and source at least 30 per cent of vehicle components locally by 2030.

It also outlines licensing requirements for local manufacturers, importers, distributors and sellers, as well as penalties for certain violations.

However, the proposal remains a legislative initiative, and its provisions should not be treated as existing legal requirements until enacted.

The debate comes as Nigeria’s passenger motor car imports surged by 145.6 per cent year-on-year to N1.18tn in the first half of 2026, according to an earlier Nairametrics report.

The increase highlights the scale of Nigeria’s dependence on imported vehicles and the challenge facing domestic manufacturers seeking to capture a larger share of the automotive market.

For local EV businesses, the central question is whether government procurement rules, import incentives and local manufacturing policies will work together to create a competitive domestic automotive industry.

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