Only cars and other vehicles made in Nigeria would henceforth be used officially by Ministries, Departments and Agencies of the Federal Government, going by a new bill that has reached advance stage at the Senate directed towards that direction.
Debate on the bill titled: Local Automotive Industry Patronage Bill, 2025, introduced by Patrick Ndubueze, Senator representing Imo North in October 2024, which has since passed its first reading, was led by the lawmaker himself on Thursday.
Bemoaning Nigeria’s overdependence on imported automobiles, which he said had continued to weaken the naira and damage local industries, he said: “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). Nigeria had failed to institutionalise the use of indigenous brands and instead glorified foreign products of no superior value. Today we see the seesawing of the naira, and with every plunge, inflation bites harder.”
Ndubueze, who pointed to the efforts the country was making to rev up the auto industry in Nigeria, pointed to how 54 automobile manufacturing licences had been issued in Nigeria, with only six companies remaining in operation due to forex shortages and poor infrastructure.
Lamenting that most of the companies had moved to countries like Ghana to set up plants to produce vehicles for the Nigerian market due to the presence of critical infrastructure, he added: “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 — the government — refuses to buy made-in-Nigeria goods? This is the first step to saving our economy, protecting our currency, and creating jobs for our people.
“Only firms with at least 70 per cent Nigerian work force, 75 per cent local research and development (R&D) spend, and technology such as robotic painting machines and electrophoresis systems should qualify as local manufacturers.
“Government support for local industry should be seen as both strategically important, a long-term investment, and a national security imperative. Look at China, India, and Malaysia. These are countries that banned imported cars in their early years to grow domestic industries.
“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.”
Mohammed Monguno, Senate Chief Whip, who echoed the same sentiments, said the bill would give legal backing to an existing directive by the federal executive council (FEC) on the use of local products, adding: “This law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it.”
Barau Jibrin, Deputy Senate President, also toeing the same line with the Senator representing Borno Central and the presiding officer, said the bill would “provide jobs for automobile engineers in the country and encourage more investors to move into the sector.”
Before referring the bill to the Senate Committee on Public Procurement for further legislative scrutiny, with a report expected within four weeks, Barau added: “The bill will strengthen our economy and the naira and galvanise the automobile industry. We hope the process to get it assented to by the president will be expeditious.”