The Senate, on Wednesday, passed for second reading a bill seeking to mandate Ministries, Departments, and Agencies (MDAs) of government to prioritise locally manufactured automobiles in their procurement processes.
The proposed legislation, titled the Local Automotive Industry Patronage Bill, 2025, is sponsored by Senator Patrick Ndubueze (Imo North).
Leading the debate, Ndubueze decried Nigeria’s longstanding overreliance on imported goods—particularly automobiles—saying the practice has negatively affected the naira and weakened local industries.
“We have failed to institutionalise the use of indigenous products, brands, and services in Nigeria, and have instead glorified foreign goods of no particular superior quality,” he said. “Today, we see the see-sawing of the naira, and with every plunge, inflation bites harder.”
He lamented that despite the issuance of 54 automobile manufacturing licences, only six companies remain operational due to foreign exchange constraints and inadequate infrastructure. “Several automakers have moved to nearby Ghana and are setting up assembly plants there with plans to export the vehicles to Nigeria,” he added.
The senator stressed the urgent need for a sustainable automobile policy that would institutionalise the use of Nigerian-made vehicles, especially within government.
“How do we stem the free fall of the naira if we cannot address our appetite for foreign goods? How do we support the development of indigenous brands if the biggest spender, year on year — the government — refuses to buy made-in-Nigeria goods?” he queried.
He proposed that at least 75 percent of official vehicles used by public officers and civil servants should be locally manufactured—not merely assembled. “This is the first step to saving our economy, protecting our currency, and creating jobs for our people,” he argued.
Ndubueze also outlined conditions companies must meet to qualify as local manufacturers, including employing at least 70 percent Nigerian workforce, investing 75 percent of their research and development budget locally, and possessing full-scale manufacturing capabilities such as robotic painting machines and electrophoresis systems.
“Government support for local industry should be seen as strategically important, a long-term investment, and a national security imperative,” he stated.
He cited countries like China, India, and Malaysia, which initially banned imported cars to grow their domestic automotive sectors. “Today, these countries have perfected their local processes, and we are now importing their products—some of which cannot compete with our locally manufactured vehicles,” he said.
Supporting the bill, Senate Chief Whip Tahir Mongunu noted that the proposal would give legislative backing to the Federal Executive Council (FEC)’s earlier directive on prioritising local products. “This law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it,” Mongunu stated.
Deputy Senate President Barau Jibrin also endorsed the bill, saying its passage would “provide jobs for automobile engineers in the country and encourage more investors to move into the sector.”
The bill was referred to the Senate Committee on Public Procurement for further legislative input. The committee is expected to report back in four weeks.
