The Senate on Thursday took a significant step toward bolstering Nigeria’s local automobile sector as the Local Automobile Industry Patronage Bill, 2025 passed its second reading.
The bill, sponsored by Senator Patrick Ndubueze (APC–Imo), aims to prioritize indigenous manufacturers and companies in the procurement of goods and services by Ministries, Departments, and Agencies (MDAs) of government.
Leading the debate on the bill’s general principles, Ndubueze said the legislation would “make it mandatory for Ministries, Departments and Agencies to give priorities to local manufacturers and indigenous companies in the procurement of goods and services.”
He added that the bill would also “prohibit the exclusion of locally produced goods in the procurement process and for related matters.”
Ndubueze argued that sustained economic growth depends on deliberate policies that support local production.
“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),” he said.
He lamented Nigeria’s long-standing preference for foreign goods, which, in his view, often lack any real advantage in quality.
“This failure has and is being felt in no less a sector than our economy. Today, we see the see-sawing of the Naira and with every plunge, inflation bites harder.
“Nigeria must at this stage of our history enforce a sustainable policy on made-in-Nigeria automobiles.
“This is because imported cars continue to account for billions of dollars in forex outflow.
“One of the biggest expenses of both the public and civil service is the procurement of foreign automobiles,” Ndubueze noted.
He further asserted that reviving the local currency must begin with policies that reinforce domestic production.
“The first of which must be the institutionalisation of buying made-in-Nigeria vehicles,” he said.
Supporting the bill, Senate Chief Whip, Senator Mohammed Monguno, stressed the economic benefits of supporting local industries.
“The use and patronage of made-in-Nigerian goods would promote local industries with all the attendant effect of creating more employment and growing our Gross Domestic Product (GDP),” Monguno said.
He also referenced a recent Federal Executive Council resolution.
“Mr President, if I can refresh your memory, about a week ago, the Federal Executive Council passed a resolution to the effect that Nigerians should patronise made-in-Nigerian goods.
“That all ministries, departments and agencies of government were equally directed to patronise made-in-Nigeria goods in order to promote local industries.”
Monguno explained that the proposed bill would give legal backing to that resolution.
“So that the resolution is done through an Executive fiat,” he added.
Deputy Senate President Jibrin Barau also voiced his support, stating that the bill would play a vital role in revitalising Nigeria’s economy.
“Patronising made-in-Nigeria vehicles would help boost the economy,” he said.
