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By Lizzy Chirkpi
A proposed legislation seeking to advance Nigeria’s automotive industry gained momentum today as a bill mandating federal Ministries, Departments, and Agencies (MDAs) to prioritize locally manufactured vehicles scaled its second reading in the Senate.
Senator Ndubueze Patrick Chiwuba (APC, Imo) the sponsor of the bill during debate on the floor of the Red Chamber in his debate said the “Local Automotive Industry Patronage Bill, 2025,” aims to fundamentally shift government procurement towards indigenous automobile production, a move designed to curb Nigeria’s heavy reliance on imported vehicles.
Leading the debate on the Senate floor, Senator Chiwuba lamented the detrimental effects of this overdependence on the Nigerian economy and its currency.
“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. Today we see the see-sawing of the Naira and with every plunge, inflation bites harder”, he asserted.
The lawmaker stated that out of 54 automobile manufacturing licenses issued, only six companies remain operational. He attributed this decline to persistent challenges such as foreign exchange constraints and inadequate infrastructure. Senator Chiwuba also raised concerns about Nigerian automakers opting to set up assembly plants in neighboring Ghana with intentions to export vehicles back to Nigeria.
Senator Chiwuba passionately argued for an urgent and sustainable automobile policy that would institutionalize the use of Nigerian-made vehicles, particularly within government. “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 refuses to buy made-in-Nigeria goods?” he queried, emphasizing the need for the government to lead by example.
He proposed that at least 75% of official vehicles utilized by public officers and civil servants should be locally manufactured, not merely assembled. The first step to saving our economy, protecting our currency, and creating jobs for our people.”
To qualify as a local manufacturer under the proposed bill, companies would need to meet stringent conditions, including employing at least 70% Nigerian workforce, investing 75% of their Research and Development (R&D) budget locally, and possessing full-scale technology such as robotic painting machines and electrophoresis systems.
Senator Chiwuba underscored the strategic importance of government support for local industry, viewing it as a “long-term investment, and a national security imperative.” He drew parallels with countries like China, India, and Malaysia, which initially implemented bans on imported cars to nurture their domestic automotive sectors. “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,” he noted.
The bill received strong support from other senators. The Senate Chief Whip, Tahir Mongunu, commended the proposal, stating it would provide legislative backing to an earlier directive from the Federal Executive Council (FEC) on prioritizing local products.
“This law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it,” Mongunu stated.
Deputy Senate President Barau Jibrin also endorsed the bill, highlighting its potential to “provide jobs for automobile engineers in the country and encourage more investors to move into the sector.”
The bill has been referred to the Senate Committee on Public Procurement for further legislative input, with the committee expected to report back within four weeks. Its passage would mark a significant shift in Nigeria’s economic policy, potentially revitalizing the local automotive industry and creating thousands of jobs.