Senate moves to mandate Nigerian-made vehicles for government use

A bill seeking to compel Ministries, Departments, and Agencies (MDAs) to prioritize the procurement of Nigerian-made vehicles has passed second reading in the Senate.

The proposed legislation, titled the Local Automotive Industry Patronage Bill, 2025, is sponsored by Senator Patrick Ndubueze, who represents Imo North Senatorial District. First introduced in October 2024, the bill progressed to its second reading during Thursday’s plenary session.

Leading the debate, Senator Ndubueze decried Nigeria’s heavy reliance on imported vehicles, which he said contributes to the persistent depreciation of the naira and the weakening of local industries. According to him, no nation can achieve sustained economic growth without policies that promote domestic production.

Ndubueze argued that Nigeria has continued to glorify foreign products at the expense of its own brands, stressing that government patronage is critical to building confidence in local manufacturers. He noted that while 54 automotive manufacturing licenses have been issued in Nigeria, only six companies remain functional due to forex challenges and inadequate infrastructure. Many of these firms, he said, have now relocated to Ghana, where they are setting up plants to target the Nigerian market.

To reverse this trend, the senator proposed that a minimum of 75 percent of all government vehicles procured by public officers and civil servants be locally manufactured—emphasizing full manufacturing, not just assembly. He further recommended that only firms meeting strict criteria—such as a 70 percent Nigerian workforce, 75 percent local R&D expenditure, and advanced production capabilities—should qualify as local manufacturers.

“How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?” Ndubueze asked. “How do we support the development of indigenous brands if the biggest spender—the government—refuses to buy made-in-Nigeria goods?”

The lawmaker cited countries like China, India, and Malaysia as examples of how banning imported vehicles during formative years helped them develop globally competitive automotive industries—products which Nigeria now imports.

Senate Chief Whip, Senator Mohammed Monguno (Borno Central), backed the bill, saying it would give legal weight to an existing Federal Executive Council (FEC) directive promoting local content, and protect it from policy reversals by future administrations.

Also speaking in support, Deputy Senate President Barau Jibrin, who presided over the session, noted that the legislation would help stabilize the economy, create employment opportunities, and attract new investments into the automotive industry. He expressed hope for a swift passage and presidential assent.

The bill has now been referred to the Senate Committee on Public Procurement for further legislative work. A report is expected within four weeks, bringing the bill closer to full enactment.