The Nigerian Senate has moved the Local Automotive Industry Patronage Bill, 2025, to its second reading, paving the way for legislation that would require Government Ministries, Departments, and Agencies (MDAs) to prioritize locally manufactured vehicles.

Sponsored by Senator Patrick Ndubueze (Imo North), the Bill aims to boost Nigeria’s auto industry, create jobs, stabilize the naira, and support economic growth. During Thursday’s plenary, Ndubueze criticized Nigeria’s reliance on imported vehicles, warning that it weakens local manufacturing and economic resilience.

“Nigeria has consistently ignored homegrown products in favor of foreign alternatives that are not necessarily superior.”

“This neglect contributes to the naira’s ongoing depreciation and rising inflation,” he remarked.

Although 54 automobile manufacturing licenses have been issued in Nigeria, only six companies remain operational. Ndubueze attributed this decline to poor infrastructure and forex challenges, which have forced manufacturers to relocate to Ghana, where they now build vehicles for the Nigerian market.

To reverse this trend, he proposed that at least 75% of vehicles purchased for public officials be fully manufactured locally, not just assembled. However, he suggested exempting the President, Vice-President, Senate President, and Speaker during the policy’s initial phase.

He further outlined strict criteria for local manufacturers, requiring at least 70% Nigerian workforce, 75% domestic R&D investment, and advanced manufacturing equipment like robotic painting systems.

Ndubueze emphasized that supporting domestic vehicle production is a national security issue, not just an economic policy. Comparing China, India, and Malaysia, he noted how restricting vehicle imports helped them grow their local industries into global exporters, including to Nigeria

The Bill has received strong support from lawmakers. Senate Chief Whip Tahir Mongunu highlighted that it would reinforce a prior Federal Executive Council directive on local procurement, shielding it from political reversals.

“This Bill offers permanence to a policy that was previously vulnerable to political shifts,” Mongunu said.

Deputy Senate President Barau Jibrin also backed the Bill, saying it would create jobs for engineers and attract investments in Nigeria’s automotive sector.

Following the debate, the Senate passed the Bill for a second reading and referred it to the Committee on Public Procurement, which is expected to submit its report within four weeks.