We have failed to institutionalise the use of indigenous products and instead glorified foreign goods of no particular superior quality.”
By Deborah Hassan
365Daily – The Senate has advanced a bill that would compel Ministries, Departments, and Agencies (MDAs) to prioritise the purchase of locally manufactured vehicles, a move aimed at boosting the domestic automotive industry and reducing foreign exchange pressure.
The bill, titled Local Automotive Industry Patronage Bill, 2025, sponsored by Senator Patrick Ndubueze (Imo North), passed second reading on Thursday during plenary.
According to Senator Ndubueze, the legislation is designed to reduce Nigeria’s overreliance on imported vehicles and support local manufacturers like Innoson, which already produce a wide range of vehicles—from saloon cars to electric and CNG-powered buses.
“We have failed to institutionalise the use of indigenous products and instead glorified foreign goods of no particular superior quality,” Ndubueze said. “How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?”
He revealed that Nigeria spent over $1 billion on vehicle imports from the U.S. in 2021 alone, according to UN data. Yet, only 6 out of 54 licensed local vehicle assembly plants remain active, due to forex scarcity and poor infrastructure.
The bill proposes that 75 percent of official vehicles used by civil and public servants must be locally manufactured, not merely assembled. To qualify as a local manufacturer under the law, companies must have at least 70 percent Nigerian workforce, invest significantly in local research and development, and incorporate key manufacturing technologies within Nigeria.
Senate Chief Whip Tahir Mongunu described the bill as a necessary safeguard. “This law will insulate the Federal Executive Council’s existing directive from the whims and caprices of subsequent administrations,” he said.
Deputy Senate President Barau Jibrin added that the bill would unlock job opportunities in the automotive sector and stimulate investor confidence. “It will encourage more investors to come into the sector and create jobs for our engineers and technicians,” Jibrin said.
Senator Ndubueze also referenced historical efforts like Nigeria’s Peugeot Assembly Plant, commissioned in 1973, and recent successes such as Innoson’s delivery of 10 buses to the Federal Airports Authority of Nigeria (FAAN) that outperformed imported Chinese buses.
“Countries like China, India, and Malaysia banned imported vehicles to grow their local auto industries. We must do the same,” he argued. “This is a national security and economic imperative.”
The bill has been referred to the Senate Committee on Public Procurement for further legislative work. The committee is expected to report back within four weeks.