The Nigerian Senate has passed for second reading a legislation aimed at boosting the country’s automotive sector by mandating Ministries, Departments, and Agencies (MDAs) to prioritise locally manufactured vehicles in their procurement processes.
Titled the “Local Automotive Industry Patronage Bill 2025,” the proposal is sponsored by Senator Ndubueze Patrick Chiwuba (Imo North) and seeks to institutionalise government patronage of Nigerian-made automobiles as a key economic strategy.
Presenting the bill during plenary on Wednesday, Ndubueze lamented Nigeria’s persistent overreliance on imported vehicles, which he said has contributed to the weakening of the naira and stagnation of local manufacturing.
He said: “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.
“Today, we see the seesawing of the naira and, with every plunge, inflation bites harder.”
The senator revealed that although the federal government has issued 54 automobile manufacturing licences, only six firms remain operational, mainly due to foreign exchange pressures and poor infrastructure.
He warned that several vehicle makers have relocated to neighbouring Ghana, where they are establishing assembly plants with plans to export to Nigeria.
Ndubueze urged the Senate to enact a lasting legislative framework that would institutionalise the purchase of Nigerian-made vehicles, especially within the public sector.
He proposed that at least 75% of official vehicles used by public officers and civil servants be manufactured locally, not merely assembled from imported parts.
“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—government—refuses to buy made-in-Nigeria goods?” he asked.
According to the bill, companies that qualify as local manufacturers must meet stringent criteria, including a 70% Nigerian workforce, 75% local investment in research and development, and the presence of full-scale production capabilities such as robotic painting systems and electrophoresis plants.
Ndubueze emphasized that supporting domestic automobile producers is not just an economic choice, but a strategic national security imperative.
He cited China, India, and Malaysia as countries that banned car imports in their early industrial stages to foster homegrown industries—policies he argued Nigeria must emulate.
Backing the bill, Senate Chief Whip Tahir Monguno said it would reinforce earlier directives by the Federal Executive Council (FEC) on patronising local products, preventing future administrations from reversing the gains.
“This law will insulate the directive from the whims and caprices of subsequent administrations,” Monguno said.
Deputy Senate President Barau Jibrin also threw his weight behind the bill, stressing its potential to create jobs for local engineers and attract more investors into the automotive sector.
Following its second reading, the bill was referred to the Senate Committee on Public Procurement for further legislative scrutiny. The committee has been given four weeks to submit its report.
