Unlocking opportunities in Nigeria’s renewed hope procurement policy

Introduction

For years, Nigerian SMEs have seen the government procurement space as off‑limits, dominated by big players and foreign firms. That era is over. The Federal Government’s Nigeria First Policy, a key part of the Renewed Hope Agenda, now requires all Ministries, Departments, and Agencies (MDAs) to prioritise Nigerian goods and services in every procurement decision. This is a legally enforceable shift, not a slogan. For SMEs that are compliant and prepared, it opens the door to stable, high‑value government contracts. This guide shows you how to position your business to benefit.

From campaign to enforcement

Approved in May 2025, the Nigeria First Policy moves beyond “Buy Nigeria” messaging to a strict, rules‑based system. MDAs must choose local suppliers first. Foreign options are only allowed when no local alternative exists, and even then, they must include technology transfer or local partnership terms.

The Bureau of Public Procurement (BPP) now enforces this through mandatory waivers, strict justification requirements and penalties for non‑compliance. The message is clear: success depends on compliance and capacity, not connections.

Building a strong compliance profile

The policy opens the door, but SMEs must meet higher standards to walk through it. Five areas now define readiness:

1 - Documentation

Basic CAC registration is no longer enough. You need:

• Up‑to‑date CAC records

• A valid Tax Clearance Certificate

• PenCom compliance

• ITF compliance.

2 -Financial Credibility

Government buyers want proof you can handle the work. Expect to provide:

• Audited financial statements

• Evidence of working capital for contracts worth 30–50 percent of your annual revenue.

3 - Technical and operational capacity

Verbal assurances are out. You must show:

• Documented processes

• Qualified staff with relevant certifications (e.g., COREN)

• Reference projects that match public sector standards.

4 - Strategic registration

Being on a few vendor lists is no longer enough. Register on the BPP Contractor Registration System, which is becoming the central Nigeria First vendor database.

5 - Competitive differentiation

Price alone won’t win. The new advantage is the Business Integrity Certification from the Financial Reporting Council, now recognised by the BPP and Bank of Industry.

A practical action plan for SMEs

• Understand the procurement system

• Learn the public procurement act, contract thresholds and bidding methods. Track the Bureau of Public Procurement website, budgets and development plans to spot opportunities early.

• Highlight your local value

• Showcase your Nigerian workforce, local suppliers and community impact. Local content is now a core scoring factor.

• Build smart partnerships

• Collaborate with other SMEs to scale up or partner with foreign firms only when justified by a waiver. You lead local execution.

• Deliver exceptionally

• Winning once is not the goal. Consistent, high‑quality delivery builds a reputation that leads to repeat contracts and preferred‑supplier status.

In summary, the Nigeria First Policy is a major economic shift designed to strengthen local industry. It rewards SMEs that are formal, compliant and capable. By upgrading your documentation, strengthening your financial and technical profile, and positioning your business as a reliable local partner, you can turn this policy into a powerful growth engine. This is your moment to move from bidder to essential partner in Nigeria’s next phase of industrial development.

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