Nigeria prioritizes local industry amid global trade uncertainty

In response to global trade uncertainty, particularly influenced by shifts in U.S. trade policies, Nigeria's government has implemented the Nigeria First policy. This initiative, announced in early 2025, aims to prioritize the procurement of locally available goods and services over foreign imports unless clear justification is provided. The policy seeks to enhance Nigeria's economic self-sufficiency and support local businesses by reducing reliance on expensive imports that deplete foreign currency resources. The Nigeria First policy mirrors historical instances of governmental focus on local production, similar to reforms previously enacted by President Bola Tinubu during his tenure as Lagos state governor from 1999 to 2003. The initiative is perceived as a strategic move to stimulate domestic production opportunities and job creation within Nigeria, a populous nation with a market of approximately 220 million citizens. Additionally, major investments, such as the establishment of one of the world's largest textile plants in Ogun State, signify confidence in Nigeria’s manufacturing potential. This plant is expected to employ around 250,000 individuals, capable of producing up to 1,000 tons of garments daily, thereby supporting local job creation and fulfilling domestic consumption demand. The implementation of the Nigeria First policy is contrasted by mixed reactions from multinational corporations. While some companies like Danone have intensified their commitment to investing in Nigeria, others like Procter & Gamble and Unilever have significantly reduced operations or exited the market, citing economic challenges such as currency devaluations and inflation impacting their operational viability. Overall, the policy reflects a critical shift toward focusing on local resource utilization to bolster Nigeria's economy amidst challenging global trade dynamics.