For decades, Nigeria’s economic structure has remained heavily dependent on imported technologies, machinery and industrial equipment. From agricultural tools and power systems to electronics, automobiles and manufacturing machines, the country has consistently relied on foreign products to drive critical sectors of the economy. This dependence has come at enormous economic cost, putting pressure on foreign exchange reserves, weakening local industries and exposing the country to global supply chain disruptions and exchange rate volatility.
Amid growing concerns over the continued depreciation of the Naira and rising import bills, the National Agency for Science and Engineering Infrastructure (NASENI) has intensified efforts to promote local technologies development as part of Nigeria’s broader import substitution agenda. The Agency’s renewed push is aimed at reducing the country’s dependence on foreign technologies through the development, commercialisation and adoption of indigenous alternatives.
The drive aligns with the Federal Government’s ‘Nigeria First policy’ direction encouraging Ministries, Departments and Agencies (MDAs) to prioritise locally made goods and services where available. Economic experts say such measures have become increasingly necessary as Nigeria struggles with foreign exchange shortages and rising production costs.
Available data underscore the scale of the challenge confronting the country. According to figures released by the National Bureau of Statistics (NBS), Nigeria spent about N8.64 trillion on imported boilers, machinery and appliances within the first nine months of 2025. The imports covered industrial machines, mechanical equipment, electrical appliances and related technology products used across several sectors of the economy. Analysts say the figure reflects Nigeria’s continued dependence on foreign industrial infrastructure despite decades of discussions around local manufacturing and industrialisation.
Reports citing the Raw Materials Research and Development Council (RMRDC) also indicate that nearly 70 per cent of manufacturing inputs used in Nigeria are imported. Economists warn that such dependence contributes significantly to pressure on the country’s foreign reserves because manufacturers and importers must source foreign currencies to pay for imported goods and industrial components.
The implications go beyond foreign exchange demand, hence Industry observers say excessive import dependence weakens local production capacity, limits job creation opportunities and discourages investments in indigenous technology development. It also exposes the economy to external shocks whenever global supply chains are disrupted or exchange rates fluctuate sharply.
For years, experts have argued that Nigeria’s industrial growth can only become sustainable through deliberate support for local manufacturing and homegrown technologies. It is within this context that NASENI’s activities are increasingly attracting national attention.
Established to promote science, engineering and technological infrastructure, NASENI has over the years developed various local innovations aimed at addressing Nigeria’s industrial and technological gaps. Under its current leadership, the Agency has expanded efforts to commercialise research outputs and collaborate with industries to scale production of locally developed technologies.
In February 2024, NASENI unveiled its ‘3Cs’ principle of Collaboration, Creation and Commercialisation designed to strengthen local manufacturing and promote Made-in-Nigeria products. The EVC/CEO of NASENI, Khalil Suleiman Halilu, said the strategy would bridge the gap between research institutions, innovators and industries so that locally developed ideas could move beyond laboratories into commercial production.
At various stakeholders’ engagements and exhibitions held across the country, NASENI has showcased a range of indigenous technologies including hybrid vehicles, electric tricycles, solar-powered irrigation pumps, laptops, solar water dispensers, HatchBox, Mobile Science Kits and other engineering products developed through local research and technical partnerships.
One of the Agency’s flagship interventions is the development of solar-powered irrigation pumps aimed at reducing dependence on imported fuel-powered irrigation systems. The initiative gained national attention after the National Economic Council (NEC) approved the nationwide rollout of the technology as part of efforts to strengthen food security and support mechanised agriculture.
The irrigation pumps are designed to provide farmers with affordable alternatives to petrol and diesel-powered systems whose operating costs have risen sharply following increases in fuel prices. Agricultural experts say the initiative could help lower farming costs, improve irrigation efficiency and reduce fuel consumption among smallholder farmers.
NASENI has also ventured into automobile technology development through the introduction of hybrid and electric vehicles developed in collaboration with technical partners under technology transfer arrangements. At some of its public exhibitions, the Agency displayed locally assembled vehicles and tricycles as part of efforts to demonstrate the potential of indigenous automotive production.
Stakeholders say such initiatives may help reduce Nigeria’s dependence on imported automobiles and automotive components if production is sustained and scaled effectively. The country currently spends billions annually on vehicle imports; a situation that experts say contributes significantly to foreign exchange demand.
The Agency’s efforts in local electronics manufacturing have equally generated interest. NASENI has promoted locally assembled laptops and electronic devices targeted at educational institutions, businesses and government agencies. Though the country still relies heavily on imported electronic products, the Agency through its National Engineering Design Development Institute (NEDDI) is locally producing electronic products and components that are gradually reducing import dependence while stimulating industrial growth and employment.
However, one of the major obstacles confronting locally made products in Nigeria remains public perception. Many consumers continue to associate foreign products with superior quality and durability despite increasing improvements in indigenous manufacturing.
NASENI officials have repeatedly acknowledged this challenge while insisting that local technologies are becoming increasingly competitive in terms of quality and affordability. According to the Agency, many locally developed products are specifically designed to address Nigerian environmental and operational realities, making them suitable for domestic conditions.
Locally manufactured alternatives reduce exposure to currency volatility because production costs are partly denominated in local currency. Analysts argue that strengthening local manufacturing could therefore help moderate inflationary pressures associated with imported products.
The Federal Government’s ‘Nigeria First Policy’ is expected to play an important role in this regard. The policy seeks to encourage MDAs to prioritise locally made products and services instead of relying excessively on imported alternatives where domestic capacity exists.
NASENI officials have welcomed the initiative, describing it as a major boost for indigenous manufacturers and local technology developers. According to the Agency, increased patronage by government institutions could stimulate demand, encourage private sector investment and create economies of scale for local industries.
Beyond government patronage, NASENI has also sought to strengthen partnerships with private manufacturers and investors to commercialise research outputs and scale local production. The Agency’s collaboration-driven approach is intended to ensure that innovations do not remain at prototype levels but are transformed into commercially viable products capable of competing in the market.
Economists and experts say the potential foreign exchange savings from successful import substitution could be substantial. Apart from conserving foreign exchange, local manufacturing could also stimulate employment generation and industrial development. Indigenous production creates value chains involving raw materials sourcing, engineering services, fabrication, logistics, maintenance and technical support.
Industry observers note that countries that achieved rapid industrialisation often relied on deliberate local content policies and strategic investments in domestic production capacity. According to them, Nigeria’s renewed emphasis on local technology development reflects growing recognition that sustainable economic growth cannot be built entirely on import dependence.
Technology transfer is critical. NASENI’s partnerships with foreign firms prioritise skills development and local capacity building rather than perpetuating dependence on imported components and technical expertise.
With over a dozen Development Institutes across the country, NASENI interventions cut across development of scientific equipment, agricultural machinery and equipment, solar energy panel production, solid minerals machinery, advanced manufacturing technology, power equipment and electrical machinery, prototype engineering, hydraulic and pneumatic machinery, engineering design, hydraulic equipment and engineering materials development.
Many observers believe NASENI’s current interventions represent one of the most ambitious attempts in recent years to reposition Nigeria toward technology-driven industrialisation. Through investments in innovation, local manufacturing and industrial collaboration, the Agency is increasingly positioning itself as a key player in Nigeria’s import substitution agenda.