The Nigerian Senate has passed for second reading the Local Automotive Industry Patronage Bill, 2025, which seeks to mandate Ministries, Departments, and Agencies (MDAs) of government to prioritise the procurement of locally manufactured vehicles.
The bill, sponsored by Senator Ndubueze Patrick Chiwuba (Imo North), aims to promote indigenous automobile production as a key strategy for economic growth, job creation, and naira stability.
Leading debate on the bill during Thursday’s plenary, Senator Ndubueze lamented Nigeria’s longstanding dependence on imported vehicles, which he said continues to undermine the local manufacturing sector and weaken the national currency.
“We have failed to institutionalize the use of indigenous products and services, and have instead glorified foreign goods of no particular superior quality,” he said. “Today, we see the naira in free fall, and with every plunge, inflation bites harder.”
He revealed that although the government had issued 54 automobile manufacturing licenses, only six companies remain operational, largely due to foreign exchange challenges and infrastructural deficiencies. He noted that several licensed automakers had relocated to Ghana, where they are setting up assembly plants aimed at exporting vehicles back to Nigeria.
Ndubueze called for a robust and sustainable national automotive policy, proposing that at least 75% of vehicles procured by public officers and civil servants 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 said.
He stipulated that only companies meeting certain criteria should qualify as local manufacturers. These include employing at least 70% Nigerian workforce, investing 75% of their research and development budget locally, and possessing full-scale technological capacity, including robotic painting machines and electrophoresis systems.
“Government support for local industry should be seen not just as economic policy, but as a national security imperative,” he asserted.
Citing global examples, the lawmaker noted that countries such as China, India, and Malaysia initially banned vehicle imports to grow their domestic auto industries.
“Today, those countries export vehicles to Nigeria—products that, in many cases, do not outperform what our own local manufacturers are capable of producing,” he said.
The bill received broad support from other lawmakers. Senate Chief Whip Tahir Mongunu said the bill would give legal backing to the earlier Federal Executive Council (FEC) directive on local procurement, protecting it from future policy reversals.
“This law will insulate the directive from the whims and caprices of subsequent administrations,” Mongunu said.
Deputy Senate President Barau Jibrin also endorsed the bill, noting that its passage would stimulate employment among local engineers and attract more investors into the automobile sector.
The bill was subsequently referred to the Senate Committee on Public Procurement for further legislative action. The committee is expected to report back within four weeks.
