The Nigerian Senate has passed for second reading the Local Automotive Industry Patronage Bill 2025, a bold legislative proposal aimed at mandating government Ministries, Departments, and Agencies (MDAs) to prioritise locally manufactured vehicles in their procurement processes.
The bill, sponsored by Senator Ndubueze Patrick Chiwuba (Imo North), seeks to revive the domestic automotive sector by institutionalising government patronage of Nigerian-made automobiles as a strategic economic policy.
Presenting the bill during Wednesday’s plenary session, Senator Ndubueze decried Nigeria’s heavy reliance on imported vehicles, warning that such practices contribute to the naira’s depreciation and cripple local manufacturing.
“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 seesawing of the naira and, with every plunge, inflation bites harder.”
According to the lawmaker, although the federal government has issued 54 licences to automobile manufacturers, only six firms remain operational, with many hindered by forex volatility and poor infrastructure. He noted that some firms have relocated to Ghana to assemble vehicles for the Nigerian market.
To reverse this trend, the bill proposes that at least 75% of vehicles purchased by MDAs must be manufactured locally—not just assembled from imported parts.
“How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?” Ndubueze asked. “How do we support the development of indigenous brands if the biggest spender—government—refuses to buy made-in-Nigeria goods?”
To qualify as local manufacturers under the bill, companies must:
- Employ at least 70% Nigerian workforce
- Invest 75% of research and development (R&D) locally
- Operate full-scale production facilities, including robotic painting systems and electrophoresis plants
Senator Ndubueze framed the legislation as a national security priority, urging Nigeria to emulate countries like China, India, and Malaysia, which banned car imports during their early industrialisation periods to protect local industries.
Senate Chief Whip Tahir Monguno backed the bill, describing it as a necessary step to insulate past Executive directives from policy reversals.
“This law will insulate the directive from the whims and caprices of subsequent administrations,” he noted.
Deputy Senate President Barau Jibrin also expressed support, highlighting the bill’s potential to create jobs, strengthen engineering capacity, and attract foreign investment into the nation’s automotive ecosystem.
Following deliberations, the bill was referred to the Senate Committee on Public Procurement, which has four weeks to submit its report.
