Senate Pushes For Mandatory Use Of Nigerian-Made Vehicles In MDAs

A bill aimed at mandating ministries, departments, and agencies (MDAs) to procure Nigerian-made vehicles has passed its second reading in the Senate.

The proposed legislation, titled the ‘Local Automotive Industry Patronage Bill, 2025’, is sponsored by Patrick Ndubueze, the senator representing Imo North.

Ndubueze first introduced the bill in October 2024, when it passed its first reading.

While presenting the bill during plenary, Ndubueze argued that Nigeria’s heavy reliance on imported vehicles continues to weaken the naira and harm the country’s domestic automotive industry.

“Any country that aims to achieve steady economic growth and development must have a policy that encourages and provides a framework for local production,” he said.

“It is also important that goods and services are produced locally, as its ripple effect is a reduction in imports and a rise in exports (balance of trade).”

The senator said Nigeria had failed to institutionalise the use of indigenous brands and instead glorified foreign products of no superior value.

“Today we see the seesawing of the naira, and with every plunge, inflation bites harder,” he said.

Ndubueze stated that 54 automobile manufacturing licenses had been issued in Nigeria, but only six companies are still operational, largely due to foreign exchange shortages and inadequate infrastructure.

He further noted that several automobile firms have relocated to Ghana, where they are now establishing plants to manufacture vehicles intended for the Nigerian market.

“How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?” he queried.

“How do we support the development of indigenous brands if the biggest spender, year on year — the government — refuses to buy made-in-Nigeria goods?”

He proposed that a minimum of 75 percent of vehicles acquired by public officials and civil servants should be locally manufactured, rather than just assembled.

“This is the first step to saving our economy, protecting our currency, and creating jobs for our people,” he said.

He stated that only companies employing at least 70 percent Nigerian workforce, allocating 75 percent of their research and development (R&D) expenditure locally, and possessing technology like robotic painting machines and electrophoresis systems should be recognized as local manufacturers.

“Government support for local industry should be seen as both strategically important, a long-term investment, and a national security imperative,” he said.

He referenced China, India, and Malaysia as examples of nations that prohibited imported vehicles in their formative years to develop their local automotive industries.

“Today, these countries have perfected their local processes, and we are now importing their products, some of which cannot compete with our locally manufactured vehicles,” he said.

Mohammed Monguno, Senate Chief Whip and senator representing Borno Central, stated that the bill would provide legal support to an existing directive by the Federal Executive Council (FEC) regarding the use of locally made products.

“This law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it,” he said.

Barau Jibrin, Deputy Senate President and the presiding officer, stated that the bill would “create employment opportunities for automobile engineers in the country and attract more investors to the sector.” He added that the bill would “boost the economy, strengthen the naira, and energise the automobile industry.”

“We hope the process to get it assented to by the president will be expeditious,” Barau added.

The bill was forwarded to the Senate Committee on Public Procurement for further legislative review, with a report anticipated within four weeks.