Nigeria is positioning itself as a major player in the adoption of electric vehicles (EVs) in Africa. This is due in part to government initiatives and private investments. Although the country is still in the development phase, efforts to promote EVs are promising.
Initiatives and policies
In 2023, President Bola Tinubu announced his commitment to making Nigeria a leader in the transition to electric vehicles in Africa. The Lagos State government has also included in its transport policy plans for a network of charging stations within the next three years.
Government policies have contributed to the growth of the sector. As a licensed manufacturer, NEV Electric benefits from tax incentives that have saved it billions of naira in import duties. Nigeria exempted imports of electric vehicles and steel from VAT in January 2024, supporting the country’s ambitious COP26 target of deploying 13 million electric vehicles by 2050.
EV Sector in Nigeria: Key Figures
- Charging Infrastructure: Nigeria plans to install over 1,000 charging stations by the end of 2025 to support EV adoption.
- EV Sales: Although Nigeria still lags behind countries like South Africa and Morocco in terms of EV sales, the market shows significant growth potential.
- Investments: Local and international companies are investing in Nigeria’s EV sector, with plans to manufacture and assemble electric vehicles.
After two years of EVs in Nigeria, Olaosebikan dispels misconceptions. Its electric vehicle offers a range of 600 kilometres, compared to 300 kilometres for conventional SUVs. Derek Ewelukwa, CEO of Jet Motors, confirms that electric vehicles can operate efficiently even with limited charging infrastructure, although expanding networks remains crucial for widespread adoption.
Beyond physical infrastructure, NEV Electric plans to invest heavily in education and awareness campaigns. The company aims to manufacture 2,000 high-capacity electric vehicles and 10,000 micro electric vehicles by the end of 2025, targeting ride-hailing drivers with cost-effective electric alternatives.
Electric Vehicle Market in Africa
- Market Growth: The African electric vehicle market is expected to reach 15.80 billion USD in 2024 and grow at a compound annual growth rate (CAGR) of 10.20% to reach 25.40 billion USD by the end of the decade.
- Market Leaders: While companies in Nigeria are leading the adoption, other countries like Egypt and South Africa are also active in the transition to electric mobility. Egypt aims to convert over 100,000 internal combustion vehicles to electric vehicles in the next five years.
Challenges and Opportunities
Nigeria faces several challenges, including high conversion costs, inadequate charging infrastructure, and competition from imported used vehicles. However, favorable policies and increasing investments provide opportunities to overcome these obstacles.
With continued initiatives and strategic investments, Nigeria is well positioned to become a leader in the adoption of electric vehicles in Africa. The country aims to increase the share of EVs in the national vehicle fleet, thereby contributing to the reduction of carbon emissions and the promotion of sustainable mobility.
