In a bold step toward economic revitalisation, the Nigerian Senate has passed for second reading the Local Automotive Industry Patronage Bill, 2025, which seeks to compel all Ministries, Departments, and Agencies (MDAs) to prioritise the procurement of vehicles manufactured in Nigeria.
Sponsored by Senator Ndubueze Patrick Chiwuba (Imo North), the bill aims to strengthen the nation’s automotive sector, stimulate job creation, and protect the naira from further depreciation.
While leading debate at Thursday’s plenary, Senator Ndubueze lamented Nigeria’s heavy reliance on imported vehicles—a practice he said undermines local manufacturers and accelerates inflation.
“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.”
The senator revealed that although 54 automotive manufacturing licenses had been issued by the federal government, only six companies remain operational due to challenges such as foreign exchange constraints and inadequate infrastructure.
He noted that some companies had relocated to Ghana to set up assembly plants, intending to re-export vehicles to Nigeria.
To reverse this trend, the bill proposes that no less than 75% of government-procured vehicles be truly manufactured—rather than merely assembled—within Nigeria.
“This is the first step to saving our economy, protecting our currency, and creating jobs for our people,” Ndubueze declared.
The proposed legislation sets clear criteria for qualifying as a local vehicle manufacturer, including: a workforce comprising at least 70% Nigerians, a minimum of 75% of research and development spending retained in-country, and the use of advanced production technologies such as robotic painting and electrophoresis systems.
“Supporting local industry should go beyond economic policy—it is a matter of national security,” the senator added.
Drawing comparisons with countries like China, India, and Malaysia, Ndubueze noted that these nations initially banned vehicle imports to nurture their domestic auto industries. Today, they export cars to Nigeria—many of which, he argued, are no better than what Nigerian manufacturers can produce.
The bill received strong backing from other lawmakers. Senate Chief Whip Tahir Mongunu said the legislation would give statutory force to an earlier directive by the Federal Executive Council (FEC) mandating local procurement.
“This law will shield the policy from arbitrary reversals by future administrations,” Mongunu said.
Deputy Senate President Barau Jibrin also praised the bill, stating that it would create opportunities for local engineers and draw more investors into the automotive sector.
The bill has been referred to the Senate Committee on Public Procurement for further consideration. The committee is expected to submit its report within four weeks.
