Local Automotive Patronage Bill Scales Second Reading In Senate

A Bill seeking to compel Ministries, Departments and Agencies (MDAs) of governments at all levels in Nigeria to patronise locally manufactured vehicles, has passed the second reading stage in the Senate.

The Bill titled ‘Local Automative Patronage Bill-2025’, sponsored by Senator Patrick Ndubueze, representing Imo North, was introduced in October, 2024.

LEADERSHIP reports that Bill passage for second reading concided with President Bola Tinubu’s all-important and widely acclaimed ‘Renewed Hope Nigeria First Policy’ to be soon backed by an Executive Order.

The order will mandate all MDAs to give absolute priority to Nigerian goods, services and know-how when spending public funds.

During the plenary on Thursday, Senator Ndubueze, in his lead debate, reinforced the President’s thinking by stating inter alia, “…it is important that goods and services are produced locally,as it’s ripple effect is a reduction in import and a rise in export,with regards to the nation’s balance of trade.”

The Senator, who have never hidden his aversion to the nation’s several years of poor support to local production capacities, stridently called on his colleagues in the National Assembly to buy into the laudable initiatives as captured in the Bill.

He went further to state that the country has failed to institutionalise the use of indigenous brands as is the case in countries like China, India and Malaysia that have since banned the importation of cars as a national policy, for the purpose of growing domestic industries.

He reminded his colleagues that “today those countries have perfected their local processes and we are presently importing their products,some of which cannot compete with our locally manufactured vehicles.”

Ndubueze also revealed that over the years, 54 automative manufacturing licenses have been issued by the Nigerian government, noting that only only six companies remained operational largely due to dearth in foreign exchange and poor infrastructure.

The Imo Senator sadly regrets the fact that many automobile firms have moved to neighbouring countries like Ghana, where they are establishing plants whose production is targeted at Africa’s largest automobile market – Nigeria.

Senator Ndubueze continued his lamentation with the following posers: “How do we stem the free fall of the naira if we cannot address our appetite for foreign good. How do we support the development of indigenous brands if the biggest spender (government), year on year, refuses to buy made-in-Nigeria goods?”.

He went on to make a proposal of a minimum of 75 per cent of vehicles in the first instance, procured by public officers and civil servants to be locally manufactured (not just assembled), as it is the first serious step to saving local economy, protecting local currency, and creating jobs for our daily growing statistics of the employed.

A clearly passionate Ndubueze continued with a salient recommendation that only firms with at least 70% Nigerian workforce, 75% local research and development (R&D) budget, and technology such as robotics painting machines and electrophoresis systems should qualify as local manufacturers.

The Bill which has already gained substantial traction amongst other Senators including the day’s presiding officer, the Deputy Senate President Barau Jibrin and Chief Whip Mohammad Monguno, whom in their respective complimentary contributions to the debate, made very favourable supporting comments, was later referred it to the Senate Committee on Public Procurement for further legislative scrutiny, and eedback expected within the next four weeks.

Meanwhile, reacting to develop, a former member of the House of Representatives, Hon. Chidi Nwogu, commended Senator Ndubueze for his unwavering diligence in pursuing the actualisation of this crucial Bill, and moreso his praiseworthy presentation during the lead debate.

He went further to correlate the main meat of the debate with the position and recent announcement of the Minister of State for Industry, Senator John Enoh, that Nigerian President’s ‘Nigerian First’ Policy was geared towards injection of well over N3trillion into the national economy (of which the local automobile industry will be a major contributor), as it aims to patronise local content and indigenous enterprises, which will eventually strengthen domestic production and reduce import dependency.