The Nigerian Senate is working on a new law that will make government ministries and agencies (MDAs) buy cars made in Nigeria. The bill has passed its second reading and is moving closer to becoming law.
The bill is called the ‘Local Automotive Industry Patronage Bill, 2025’. Senator Patrick Ndubueze from Imo North sponsored the bill. He first introduced it in October 2024, and it passed its first reading then.
During a Senate session, Ndubueze said Nigeria relies too much on imported cars. This, he said, is weakening the naira and making it hard for local car companies to grow.
He explained that for Nigeria to grow economically, it must produce more goods locally. When a country makes more things at home, it imports less and can even export more. This helps balance trade.
The senator also said Nigerians often ignore local brands and prefer foreign ones, even when they aren’t any better. This attitude, he warned, hurts local businesses and adds to inflation.
According to Ndubueze, Nigeria has issued 54 licences for car manufacturing, but only six companies are still running. Most of them closed down due to foreign exchange issues and poor infrastructure.
Many of these companies have moved to Ghana, where they are now building cars to sell back to Nigeria. He asked how the country can save its currency if it keeps buying from other countries.
Ndubueze stressed that the government should lead by example. Since it is the biggest spender, it should support Nigerian-made products.
He proposed that at least 75% of the cars bought for government workers should be fully made in Nigeria. Not just assembled, but actually manufactured using local resources.
He believes this move will protect the economy, create jobs, and help stabilize the naira. Companies should also meet certain requirements to qualify as local manufacturers, such as hiring 70% Nigerian staff and investing in research and development.
Ndubueze said government support for local industry is not only good business—it’s important for national security.
He gave examples of countries like China, India, and Malaysia. These countries once banned imported cars to grow their local industries. Now they are strong producers and exporters.
Senator Mohammed Monguno also supported the bill. He said the law will protect an existing order that encourages local product use and prevent future governments from reversing it.
Deputy Senate President Barau Jibrin, who led the meeting, praised the bill. He said it will help create jobs for Nigerian engineers and attract more investment into the car sector.
He added that this law will boost the naira and strengthen the economy. He also hopes the President signs the bill into law quickly.
The bill has now been sent to the Senate’s public procurement committee. The committee will review it and report back in four weeks.
