Nigeria BPP: Criminal Offense for Unregistered Vehicle Suppliers

• The Bureau of Public Procurement (BPP) has declared that purchasing vehicles from suppliers not registered with the National Automotive Design and Development Council (NADDC) is a criminal offense.
• The BPP will not approve vehicle procurements from unregistered entities, enforcing the Federal Government's "Nigeria First" policy.
• The Public Procurement Act 2007 mandates preferential treatment for locally manufactured vehicles, even if slightly more expensive, to boost domestic production and employment.
• NADDC aims to increase Nigeria's local vehicle production from under 8% to 70% of national demand, expecting price reductions with higher volumes.
• Enhanced oversight includes a joint monitoring committee, mandatory procurement reporting to BPP, and scrutiny from the EFCC and ICPC on procurement records.

The BPP explicitly stated that acquiring vehicles from any supplier, manufacturer, or importer not officially registered with the National Automotive Design and Development Council (NADDC) constitutes a criminal offense, making such actions subject to prosecution.

The Bureau of Public Procurement (BPP) has issued a stern warning to all government agencies, known as Ministries, Departments, and Agencies (MDAs), regarding the procurement of vehicles. The BPP explicitly stated that acquiring vehicles from any supplier, manufacturer, or importer not officially registered with the National Automotive Design and Development Council (NADDC) constitutes a criminal offense, making such actions subject to prosecution.

This crucial directive was delivered by Dr. Adebowale A. Adedokun, the Director-General of the BPP, during a joint press conference held in Abuja with the NADDC. Dr. Adedokun underscored that the BPP would withhold its mandatory 'no objection' clearance for any government agency attempting to purchase vehicles from entities that have not met the specific requirements and specifications set forth by the NADDC. This measure is a direct enforcement of the Federal Government's overarching "Nigeria First" policy, aimed at prioritizing national interests in economic activities.

The NADDC plays a pivotal role in this regulatory framework, being responsible for the registration of vehicle manufacturers and maintaining a current database of all approved suppliers. Concurrently, the BPP's mandate is to ensure strict adherence to public procurement regulations across all government transactions. This collaborative effort seeks to bolster the domestic automotive sector and reduce reliance on imports.

Further supporting this initiative, the Public Procurement Act 2007 provides a legal basis for preferential treatment towards locally manufactured products. This preference applies even when the cost of domestic goods is marginally higher than imported alternatives. The policy is designed to foster economic growth by creating employment opportunities, facilitating factory expansion, and increasing local production capacity, thereby offsetting any initial price differences. The Bank of Industry (BOI) is also committed to supporting the automotive sector through financing options offered at reduced interest rates, encouraging partnerships between local and foreign firms to enhance domestic production capabilities and facilitate technology transfer.

Joseph Osanipin, the Director-General of NADDC, affirmed Nigeria's substantial capacity to scale up local vehicle production and significantly decrease its dependence on foreign imports. He noted that current local production accounts for less than eight percent of the nation's total vehicle consumption. The NADDC has set an ambitious target to progressively increase this figure, aiming to meet 70 percent of Nigeria's vehicle requirements over time. This increase in production volume is expected to lead to a reduction in vehicle prices, as manufacturers can distribute costs across a larger number of units.

In a bid to foster innovation and self-sufficiency, the NADDC is actively collaborating with universities, polytechnics, and technical institutions to commercialize indigenous automotive technologies. This includes initiatives such as the Campus Shuttle program, under which 12 universities have successfully designed buses. An electric tricycle developed at the NADDC's Zaria office has also garnered significant interest, with one prospective buyer expressing willingness to acquire approximately 300 electric vehicles. To ensure compliance and accountability, a joint monitoring and evaluation committee has been established to track vehicle procurement activities by government agencies. Furthermore, the Federal Executive Council (FEC) has mandated MDAs to submit monthly and quarterly procurement reports to the BPP, while anti-corruption agencies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) are actively requesting procurement records to monitor adherence to these regulations.

Lawyers advising Nigerian MDAs must ensure strict adherence to NADDC registration requirements for vehicle suppliers to avoid criminal prosecution and procurement rejections by the BPP. Compliance officers should also note the preferential treatment for local manufacturers and the increased scrutiny from anti-corruption agencies like EFCC and ICPC on procurement activities.

Source: Original reporting via Punch Newspapers