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The Nigerian Senate has taken a significant step toward revitalising the country’s struggling automotive industry by passing the Local Automotive Industry Patronage Bill 2025 for a second reading.
The legislation, sponsored by Senator Ndubueze Patrick Chiwuba (Imo North), seeks to compel federal Ministries, Departments, and Agencies (MDAs) to prioritise Nigerian-manufactured vehicles in their procurement processes.
During Wednesday’s plenary, Senator Ndubueze decried Nigeria’s overdependence on imported automobiles, linking it to the persistent depreciation of the naira and the stifling of local industries.
“We have failed to institutionalise the use of indigenous products and have, instead, glorified foreign goods of no particular superior quality.
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“How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?” he stated.
Ndubueze disclosed that although 54 automobile manufacturing licences have been granted, only six firms remain operational, with many relocating to Ghana due to forex constraints and inadequate infrastructure.
The bill proposes that at least 75% of official vehicles used by public officers be fully manufactured, rather than assembled, in Nigeria.
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To qualify, companies must meet strict criteria, including employing 70% Nigerians and investing at least 75% in local research and development.
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Senate President Godswill Akpabio [Facebook]
Senate Chief Whip Tahir Monguno emphasised that the bill would solidify the Federal Executive Council’s existing directives on local procurement, saying, “This law will insulate the directive from the whims and caprices of subsequent administrations.”
Deputy Senate President Barau Jibrin also supported the bill, citing its potential to boost local employment and attract investment.
The bill has been referred to the Senate Committee on Public Procurement for further legislative review and is expected to return within four weeks.