A bill mandating Nigeria’s Ministries, Departments, and Agencies (MDAs) to prioritise the procurement of locally manufactured vehicles has passed second reading in the Senate.
The Deputy Senate President, Barau Jibrin, who presided over Thursday’s plenary session, announced the passage after the majority of the senators supported it through voice votes.
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Following its passage, the bill was referred to the Senate Committee on Public Procurement for further deliberation and a public hearing.
The committee was directed to report back within four weeks.
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The bill also proposed that at least 75 per cent of official vehicles used by public officials and civil servants must be manufactured in Nigeria, not merely assembled.
It was proposed by Patrick Ndubueze, the senator representing Imo North Senatorial District.
Mr Ndubueze, while leading the debate on the blll, decried Nigeria’s dependence on imported automobiles, complaining that it continues to exert downward pressure on the naira and stifles the growth of local industries.
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“We have failed to institutionalise the use of indigenous products, brands, and services in Nigeria and have instead glorified foreign goods of no particular superior quality,” he said.
The senator complained that despite the issuance of 54 licenses for automobile manufacturing in Nigeria, only six companies remain operational.
He also warned of the threat posed by neighbouring Ghana, where he said automakers are now setting up assembly plants with the aim of exporting to Nigeria.
“Several automakers moved to nearby Ghana and are setting up assembly plants there with plans to export the vehicles to Nigeria. How do we stem the free fall of the naira if we cannot address our appetite for foreign goods?
“How do we support the development of indigenous brands if the biggest spender, year on year, government, refuses to buy made-in-Nigeria goods?”
“This is the first step to saving our economy, protecting our currency, and creating jobs for our people. Government support for local industry should be seen as both strategically important, a long-term investment, and a national security imperative.”
PREMIUM TIMES reports that the Nigerian government has consistently urged ministries and public officials to use locally manufactured products, particularly automobiles. However, these directives are often ignored even by government officials themselves.
On 5 May, the government introduced a new policy titled “Nigeria First,” which mandates all federal ministries, departments, and agencies (MDAs) to prioritise Nigerian-made goods, services, and expertise in public procurement. The initiative aims to strengthen the local automotive industry and encourage the widespread use of domestically produced vehicles.
Most of the cars on Nigerian roads are fairly used, imported from Europe and the US. Most citizens of Africa’s largest economy cannot afford new cars, even the ones made locally, and resort to second-hand ones. There are also very few car manufacturers in the country, something the Senate bill seeks to change.
However, Nigeria’s senators are also notorious for buying imported cars at exorbitant prices, even for official use, something that may change if the bill becomes law.
Supporting the bill, the Chief Whip of the Senate, Tahir Mongunu, said the bill would give legislative support to the federal government’s directives on prioritising local products.
“This law will insulate the directive from the whims and caprices of subsequent administrations who may want to reverse it,” he added.
Similarly, the deputy senate president noted that the bill, when passed, will provide jobs for Nigerian automobile engineers and encourage more investors into the sector.
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“There has been clamour, several years back and even currently, that we should patronise made in Nigeria goods. If we can achieve this, it will help our economy.
“We won’t have to be importing cars. It is something that will help our economy. If we’re able to go this route, it will encourage our manufacturers and even encourage more to invest,” he added.
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