A invoice looking for to compel ministries, departments, and businesses (MDAs) to prioritize the acquisition of Nigerian-made automobiles has handed its second studying within the Senate.
Naija Information gathered that the invoice, titled ‘Native Automotive Business Patronage Invoice, 2025’, is sponsored by the lawmaker representing Imo North, Senator Patrick Ndubueze.
Ndubueze launched the invoice in October 2024, and it handed its first studying earlier than advancing to the second stage. Main the controversy on the invoice throughout plenary, Ndubueze emphasised the detrimental affect of Nigeria’s overdependence on imported cars, which he claimed weakens the naira and undermines native industries.
“Any nation that goals to realize regular financial development and improvement will need to have a coverage that encourages and offers a framework for native manufacturing.
“It is usually necessary that items and providers are produced regionally, as its ripple impact is a discount in imports and an increase in exports,” Ndubueze mentioned.
He argued that Nigeria has did not institutionalise using indigenous manufacturers, as a substitute glorifying overseas merchandise of no superior worth.
Ndubueze identified that the continuous decline of the naira, worsened by inflation, might be stemmed by supporting the native automotive trade.
The senator highlighted that regardless of 54 vehicle manufacturing licenses being issued in Nigeria, solely six firms stay operational on account of overseas alternate shortages and poor infrastructure.
He revealed that many Nigerian vehicle corporations have moved their operations to Ghana, the place they’re establishing crops to cater to the Nigerian market.
Ndubueze said, “How can we stem the free fall of the naira if we can not deal with our urge for food for overseas items?
“How can we assist the event of indigenous manufacturers if the most important spender, 12 months on 12 months—the federal government—refuses to purchase made-in-Nigeria items?”
Ndubueze proposed that at the least 75 % of automobiles procured by public officers and civil servants be regionally manufactured, not simply assembled. “This is step one to saving our economic system, defending our foreign money, and creating jobs for our folks,” he mentioned.
He additional said that solely corporations with at the least 70 % Nigerian workforce, 75 % native analysis and improvement (R&D) spend, and superior expertise akin to robotic portray machines and electrophoresis techniques ought to qualify as native producers.
“Authorities assist for native trade needs to be seen as each strategically necessary, a long-term funding, and a nationwide safety crucial,” Ndubueze added.
Citing the examples of China, India, and Malaysia, Ndubueze famous how these international locations banned imported automobiles of their early years to foster their home automotive industries.
He identified that immediately, these nations have perfected their processes, and Nigeria now imports their merchandise, a few of that are competing instantly with Nigerian-made automobiles.
The Senate Chief Whip and consultant of Borno Central, Senator Mohammed Monguno, expressed assist for the invoice, noting that it could present authorized backing to an current directive by the Federal Govt Council (FEC) on using native merchandise.
“This legislation will insulate the directive from the whims and caprices of subsequent administrations who could wish to reverse it,” he mentioned.
Deputy Senate President, Barau Jibrin, who presided over the session, said that the invoice wouldn’t solely create jobs for vehicle engineers but additionally encourage extra buyers to enter the sector.
“This invoice will strengthen our economic system and the naira, and impress the auto trade. “We hope the method to get it assented to by the president might be expeditious,” Jibrin mentioned.
The invoice has been referred to the Senate Committee on Public Procurement for additional legislative scrutiny. A report on the invoice is anticipated inside 4 weeks, bringing the laws nearer to its ultimate approval.
