The Political-Economic Implications of the Import Ban on Foreign Goods Locally Produced In Nigeria: Areas for Legislative Consideration

Abstract

In a bid to encourage domestic production and lessen Nigeria's reliance on imported commodities, President Tinubu on 5th of May, 2025 announced a ban on the importation of goods that can be locally produced. The policy is aimed at supporting local content and encourage job creation by denying expatriates jobs that Nigerians have the expertise to do. The policy also gives priority in all procurement procedures ensuring that no foreign product or equipment that can be manufactured domestically will be imported without a valid reason. It is believed that, like the “America First” policy, the “Nigeria First” policy has the potential to boost the nation's economy by giving preference to domestically produced goods and services, prioritizing domestically produced goods and services in an attempt to strengthen domestic industries, increase employment, and stimulate the economy. However, the policy raises serious concerns about Nigeria's economic readiness, the health of domestic sectors, infrastructure deficits and the effect of the policy on trade relations. Consequently, this policy brief looks at the political-economic implications of the importation ban on foreign goods that can be locally produced in the country, and recommends, among others, that: i. The National Assembly Committee on Industries; and that of Trade and Investment may wish to intensify efforts towards strict and proper implementation of the Business Facilitation (Miscellaneous Provisions) Act, 2022 which aims to promote the ease of doing business in Nigeria and to eliminate bureaucratic hurdles; ii. The National Assembly may advice the federal government on the need to subsidize electricity for local manufacturers in order to reduce production cost; iii. In order to prevent a monopolistic group of local producers, the National Assembly may charge the Federal Competition & Consumer Protection Commission (FCCPC) for the strict enforcement of its Act, particularly sections 17(g) and 18(3)(d)&(g) which mandate the Commission to ensure fair and transparent prices of goods and services