The Senate on Thursday extended the legislative process aimed at mandating the ministries, departments, and agencies (MDAs) of government to prioritise locally manufactured automobiles in their procurement processes.
Specifically, the piece of legislation, titled: Local Automotive Industry Patronage Bill, 2025, sponsored by Senator Patrick Ndubueze (APC Imo North), passed second reading during the plenary.
Leading debate on the bill, Ndubueze decried Nigeria’s longstanding overdependence on imported goods, especially automobiles, saying the practice has negatively impacted the naira and undermined local industries.
“Any country that aims to achieve steady economic growth and development must have a policy that encourages and provides a framework for local production. It is also important that goods and services are produced locally as its ripple effect is a reduction in imports and a rise in exports (balance of trade),”;; he said.
Ndubueze lamented that the country had failed to institutionalize the use of indigenous products, brands, and services and had instead glorified foreign goods of no particular superior quality, saying “today we see the see-sawing of the naira and with every plunge, inflation bites harder.”;;
He added that despite the issuance of 54 automobile manufacturing licences, only six companies remain operational due to forex constraints and inadequate infrastructure, while several automakers moved to nearby Ghana and are setting up assembly plants there with plans to export the vehicles to Nigeria.
The lawmaker stressed the urgent need for a sustainable automobile policy that would institutionalise the use of Nigerian-made vehicles, especially in government.
He said: “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 — government — refuses to buy made-in-Nigeria goods?”;;
Ndubueze, therefore, proposed that at least 75% of official vehicles used by public officers and civil servants should be locally manufactured, not merely assembled, saying “this is the first step to saving our economy, protecting our currency, and creating jobs for our people.”;;
According to him, companies that qualify as local manufacturers must meet conditions such as having at least 70% Nigerian workforce, investing 75% of their R&D budget locally, and possessing full-scale technology like robotic painting machines and electrophoresis systems.
“Government support for local industry should be seen as both strategically important, a long-term investment, and a national security imperative,”;; he maintained.
Ndubueze cited examples of countries like China, India, and Malaysia, which initially banned imported cars to grow their local automotive sectors, noting that “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.”;;
In his contribution, the Senate Chief Whip, Senator Tahir Mongunu (APC Borno North), said the proposal would give legislative teeth to the Federal Executive Council (FEC)’s earlier directive on prioritising local products, stressing that “this law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it.”;;
Also supporting the bill, the Deputy Senate President, Senator Jibrin Barau, said 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 and is expected to report back in four weeks.
