The federal government recently signed a Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish an Electric Vehicle (EV) manufacturing plant and develop critical charging infrastructure nationwide.
For several years, Nigeria has been in talks to introduce EVs to its market, driven by the need for alternative means of mobility as fuel prices increased, and to reduce emissions and pollution in Nigeria’s transport sector.
In 2021, the federal government, through the Nigerian Institute of Transport Technology (NITT) in Zaria, officially set up a 22-member project team for the development of a Nigeria-made electric vehicle.
The initiative was rooted in a 2019 directive from Rotimi Amaechi, former minister of transportation, urging the institute to explore indigenous automotive solutions, particularly electric and alternative fuel vehicles.
The team was expected to develop a blueprint that would guide the evolution of the technology/design framework of the NITT model of an EV, develop a prototype, and promote the model in the Nigerian automotive industry.
Other requirements were to determine the budgetary allocation to support the new project, identify capacity development needed for the sustenance of the new project, and establish the technical support or partnership with other institutions or research bodies.
However, progress was constrained by funding limitations and policy inconsistencies, with concerns over Nigeria’s weak and unreliable power supply and charging infrastructure, which slowed the development of the plan.
The recent deal with the AEDC is targeted to start at different stages, beginning with EV assembly and later expanding into full in-house production, with an estimated capacity of 300,000 vehicles and the creation of approximately 10,000 jobs, a move experts say could transform Nigeria’s automotive industry for good if executed successfully, and the right infrastructures are put in place.
With high fuel prices, push for cleaner mobility, and more sustainable transport solutions, EVs are increasingly being viewed as a cost-efficient alternative that could lower operating expenses while reducing environmental impact, and help shape the automotive industry as a whole.
“If the plant includes things like battery pack assembly, vehicle integration, software development, testing, and gradual local sourcing of parts, then it can genuinely move us closer to real manufacturing over time,” Olufemi Tosin, manager, research and innovation, Nigerian Independent System Operator (NISO), told BusinessDay.
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BusinessDay findings showed that filling a petrol car currently costs more than fully charging an EV. Additionally, petrol cars have over 2,000 parts, compared with EVs, which have roughly 20-30 parts, making petrol cars more expensive to maintain over time.
The EV assembly plant, if fully developed could reshape the country’s automobile industry by lowering running and maintenance costs, combined with savings on electricity versus petrol, which will over time, reduce Nigeria’s dependence on imported vehicles and fuel, encourage the growth of related sectors such as battery and charging infrastructure, and boost the transition toward a cleaner, more sustainable transport ecosystem.
According to a report by EV24, titled ‘Electric Cars In Nigeria: Prices, Challenges, and Opportunities,’ switching to EVs can save up to 80 percent in running costs.
Additionally, a report by CarInterior, in collaboration with Alibaba, showed that Nigeria’s average electricity rate of N209.5 per kWh means charging a 40–75 kWh EV battery costs between N8,380 and N15,700 for a full charge, often less than half the equivalent petrol expense for the same distance.
“For example, a Toyota Corolla might spend N30,000+ on fuel for a 1,000 km round trip, while a comparable EV would use roughly N12,000 worth of electricity,” Alibaba stated, indicating the savings from EV use.
Chris Ayibabeledayo Allagoa, tech, transportation, infrastructure, & construction law practitioner, said that the current EV Transition and Green Mobility Bill pending before the Senate provides that all fuel stations will be required to have an electric vehicle charging point.
“This will create an obligation on all fuel stations to provide charging ports, thereby using the existing fuel infrastructure to speed up the growth of EV use in Nigeria,” Allagoa said.
Tosin added that Nigeria can realistically start with battery pack assembly, wiring, mechanical components, software, and vehicle monitoring systems.
“Full battery cell manufacturing or semiconductor production is much more complex and will likely remain imported for now because of the energy, capital, and technical requirements,” he said.
Experts further stated that without addressing issues hindering EV adoption in Nigeria, domestic value addition will remain low, and the ecosystem, especially charging infrastructure, will not thrive.
Victor Okwudili, EV mobility & fleet economics advisor, while praising the recent signing, stated that a more impactful approach would be to create strong incentives and remove bottlenecks for local and private investors.
Okwudili added that Nigeria’s EV transition must be done the Nigerian way, which involves engaging the right experts and executing the transition in phases, starting with last-mile mobility, a swapping-as-a-service model, solar-powered charging infrastructure, hybrid charging systems combining solar, grid, and generators, where necessary.
“There is still a lot of work to be done, but the most important thing is that Nigeria has started. The focus now should shift from announcements to real, on-ground execution,” Okwudili said.
