The Nigerian Senate has taken a significant step toward strengthening the nation's automotive industry by advancing a bill that would mandate government ministries, departments, and agencies (MDAs) to prioritise the procurement of locally manufactured vehicles.
The legislation, titled Local Automotive Industry Patronage Bill, 2025, sponsored by Senator Patrick Ndubueze (APC, Imo North), passed its second reading during Thursday’s plenary session.
While presenting the bill, Senator Ndubueze decried the nation’s persistent reliance on imported goods—particularly automobiles—arguing that such dependency continues to weaken the naira and stifle the growth of indigenous industries.
“Any country that aims to achieve steady economic growth and development must have a policy that encourages and provides a framework for local production,” Ndubueze said. “The ripple effect of producing goods and services locally is a reduction in imports, an increase in exports, and ultimately a positive trade balance.”
He criticised the failure to institutionalise the use of indigenous brands, noting that the glorification of foreign goods has not translated into better quality but has rather contributed to the country’s economic instability. “Today, we see the see-sawing of the naira, and with every plunge, inflation bites harder,” he remarked.
Ndubueze revealed that despite the issuance of 54 automobile manufacturing licenses in Nigeria, only six companies remain operational. He attributed this to challenges including foreign exchange constraints and inadequate infrastructure. He further noted that many automakers have relocated to neighbouring Ghana, where they are now establishing assembly plants with plans to export vehicles to Nigeria.
To address this issue, the senator proposed that a minimum of 75% of vehicles procured for official use by public officers and civil servants should be locally manufactured—not merely assembled. According to him, this policy would help preserve the naira, create jobs, and foster industrial growth.
He defined a local manufacturer as a company that meets criteria including a minimum of 70% Nigerian workforce, investment of at least 75% of its research and development budget locally, and the deployment of advanced production technologies such as robotic painting and electrophoresis systems.
“Government support for local industry should be seen not just as economic policy, but as a long-term strategic investment and a national security imperative,” he stated.
Ndubueze cited global precedents in countries like China, India, and Malaysia, which initially banned the importation of cars to nurture their local automotive industries. “Today, these countries export vehicles to Nigeria, some of which are of lower quality than what we can produce locally,” he noted.
Several senators expressed strong support for the bill. Senate Chief Whip, Senator Tahir Mongunu (APC, Borno North), said the legislation would reinforce an earlier directive by the Federal Executive Council (FEC) on the prioritisation of local products, ensuring its sustainability beyond the current administration. “This law will insulate that directive from the whims and caprices of future governments,” Mongunu said.
Deputy Senate President, Senator Jibrin Barau, also endorsed the bill, describing it as a game-changer for local employment and investment in Nigeria’s automotive sector. “Its passage will create job opportunities for automobile engineers and encourage new entrants into the industry,” he said.
Following its second reading, the bill has been referred to the Senate Committee on Public Procurement for further legislative scrutiny. The committee is expected to present its report within four weeks.
If passed into law, the bill could mark a pivotal shift in Nigeria’s industrial policy, supporting the long-sought goal of economic diversification and industrial self-reliance.
إرسال تعليق