The Nigerian Senate has approved the Electric Vehicle Transition and Green Mobility Bill for its second reading, marking a significant step towards modernizing the country’s automotive and energy sectors.
Sponsored by Senator Orji Uzor Kalu, the bill is designed to phase out petrol vehicles in favor of electric vehicles (EVs) while promoting environmental sustainability. It proposes a national framework to boost local EV manufacturing, making Nigeria a key player in the electric vehicle industry within Africa.
As part of its strategy, the bill offers incentives to importers, investors, and EV users, including tax holidays, import duty waivers, road tax reliefs, toll exemptions, and subsidies. This is aimed at encouraging both local and international investment in the growing EV market.
In a bid to strengthen local production, the bill imposes strict rules on foreign automakers. These include requirements to partner with Nigerian EV assemblers, set up local EV assembly plants within three years, and source at least 30% of content locally. Failure to comply with these provisions could lead to hefty financial penalties, including fines of up to ₦250 million per breach, while unlicensed EV importers face penalties of ₦500 million and potential confiscation of their goods.
The bill also mandates that EV assemblers produce a minimum of 5,000 units annually, adhering to international safety and technical standards. This initiative is designed to position Nigeria as the leading EV manufacturer in Africa, building on the success of local companies like Innoson, which unveiled its first made-in-Nigeria electric vehicle in 2024.
While Nigeria’s electric vehicle market has been growing—there are an estimated 15,000 to 20,000 EVs in the country, with over five electric vehicle companies in operation—the country still faces significant infrastructure challenges. To address this, the bill requires all fuel stations to install EV charging stations and provides government grants and tax credits to investors in charging infrastructure. This move aims to remove one of the key barriers to EV adoption, paving the way for a cleaner and more sustainable transportation future in Nigeria.
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