The Nigerian Senate on Thursday advanced a crucial bill aimed at mandating all ministries, departments, and agencies (MDAs) of the federal government to prioritize locally manufactured automobiles in their procurement processes.

The legislation, titled "Local Automotive Industry Patronage Bill, 2025," sponsored by Senator Patrick Ndubueze (APC Imo North), successfully passed its second reading during plenary session.

Leading the debate, Senator Ndubueze highlighted Nigeria's problematic overdependence on imported goods, particularly automobiles, which he said has significantly weakened the naira and undermined local industrial development.

"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 stated. "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."

The lawmaker lamented that despite issuing 54 automobile manufacturing licenses, only six companies remain operational in Nigeria due to foreign exchange constraints and inadequate infrastructure. He noted that several automakers have relocated to neighboring Ghana, setting up assembly plants with plans to export vehicles back to Nigeria.

The proposed legislation would require that at least 75% of official vehicles used by public officers and civil servants be locally manufactured, not merely assembled. According to Ndubueze, this represents "the first step to saving our economy, protecting our currency, and creating jobs for our people."

To qualify as local manufacturers under the bill, companies must meet specific conditions, including having at least 70% Nigerian workforce, investing 75% of their R&D budget locally, and possessing full-scale technology such as robotic painting machines and electrophoresis systems.

Supporting the bill, Senate Chief Whip Senator Tahir Mongunu (APC Borno North) emphasized that the legislation would strengthen the Federal Executive Council's earlier directive on prioritizing local products by ensuring it cannot be easily reversed by future administrations.

Deputy Senate President, Senator Jibrin Barau, also backed the bill, stating it would "provide jobs for automobile engineers in the country and encourage more investors to move into the sector."

The bill has been referred to the Senate Committee on Public Procurement for further legislative input, with expectations to report back within four weeks.

Senator Ndubueze cited examples of countries like China, India, and Malaysia, which initially restricted imported vehicles to develop their local automotive sectors. "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 concluded.