The Nigerian Senate has approved the second reading of a proposed law aimed at revitalising the country’s automotive industry by compelling Ministries, Departments, and Agencies to prioritise Nigerian-made vehicles in their procurement practices.
Titled the Local Automotive Industry Patronage Bill 2025, the bill is sponsored by Senator Ndubueze Patrick Chiwuba (Imo North). It seeks to formalise government support for the domestic automobile sector as a critical economic policy.
While presenting the bill during Wednesday’s plenary, Senator Ndubueze criticised the country’s ongoing dependence on imported vehicles, which he argued is a key contributor to the weakening of the naira and the stagnation of local production.
He stated: “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 seesawing of the naira and, with every plunge, inflation bites harder.”
Ndubueze disclosed that although the federal government has granted 54 automobile manufacturing licences, only six companies remain operational. He attributed this decline to challenges such as foreign exchange constraints and poor infrastructure. The senator warned that several automakers have already shifted their operations to Ghana, where they are establishing assembly lines with plans to export to Nigeria.
He called on the Senate to enact a sustainable legal framework that would guarantee the purchase of domestically produced vehicles, particularly for public sector use. The proposed legislation recommends that at least 75% of vehicles used by government officials and civil servants be manufactured entirely in Nigeria, rather than merely assembled from imported components.
“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—government—refuses to buy made-in-Nigeria goods?” he queried.
The bill stipulates that to qualify as a local manufacturer, companies must employ a workforce comprising at least 70% Nigerians, invest a minimum of 75% in local research and development, and operate full-scale manufacturing facilities, including advanced technologies such as robotic painting and electrophoresis plants.
Ndubueze further described the bill as a strategic imperative for national security, citing countries like China, India, and Malaysia, which restricted car imports during early industrial development to nurture local industries—
