morganable technology/science& Innovation
The initiative comes at a time when rising petrol prices, following the removal of fuel subsidies in 2023, have increased interest in alternative energy sources for transportation
KaNo—
The Federal Government has approved tax waivers for nearly 4,000 electric vehicles (EVs) imported into Nigeria in the first half of 2026, in a move aimed at accelerating the country’s transition to cleaner transportation despite persistent electricity challenges and limited charging infrastructure.
The approvals, which form part of a broader policy push to promote electric mobility, represent the first batch processed under a new government initiative designed to encourage the adoption of EVs through fiscal incentives and support for local vehicle assembly.
Data reviewed in a Reuters report on Wednesday indicated that the waivers are a key component of Nigeria’s strategy to reduce reliance on fossil fuel-powered vehicles and cut emissions from the transport sector.
The initiative comes at a time when rising petrol prices, following the removal of fuel subsidies in 2023, have increased interest in alternative energy sources for transportation.
According to the report, “The Federal Government has approved tax waivers for nearly 4,000 EVs in the first half of this year, as authorities push to accelerate nascent EV adoption despite chronic electricity shortages.” The approvals are seen as a significant step in implementing Nigeria’s long-term clean energy goals.
Nigeria’s Energy Transition Plan, launched in 2022, sets an ambitious target for electric vehicles to account for 60 per cent of the country’s vehicle fleet by 2050.
However, industry data suggests that the country is still at an early stage in achieving that objective.
EVs Account For Less Than 1% Of Vehicles In Nigeria
Although official figures are not available, automotive dealers estimate that EVs currently account for less than one per cent of vehicles on Nigerian roads, translating to only tens of thousands of units in a market dominated by petrol and diesel-powered cars.
To improve adoption rates, the government has introduced a series of fiscal measures aimed at making electric vehicles more affordable.
Analysts say these incentives are critical in lowering the cost barrier for consumers, especially in a country where the majority of vehicles are imported and where affordability remains a key consideration for buyers.
However, the push for electric mobility is unfolding against the backdrop of Nigeria’s longstanding electricity supply deficit.
The national grid currently generates around 4,000 megawatts of electricity for a population exceeding 200 million people, resulting in widespread reliance on petrol and diesel generators for power.
This limitation poses a major challenge to the growth of electric vehicle adoption, as EVs depend heavily on stable electricity for charging.
Despite these constraints, industry stakeholders argue that delaying EV adoption until the power sector improves could hinder Nigeria’s competitiveness in the global shift toward cleaner energy.
Bolanle Boboye, an executive at Saglev, Nigeria’s first electric vehicle manufacturer affiliated with Chinese automaker Dongfeng, said the country must pursue both energy and transport transitions simultaneously.
“If we wait for electricity to become perfect before adopting EVs, the rest of the world will leave us behind,” Boboye said.
Limited Infrastructure Posing Challenge
The issue of infrastructure remains a critical hurdle. A policy brief cited in the report estimated that Nigeria had only about 48 public EV charging stations as of late 2025, with most located in Lagos and Abuja.
This figure is significantly lower than that of South Africa, which has over 500 public charging stations. Experts say the disparity highlights the scale of investment required to build a functional EV ecosystem in Nigeria.
Even projections within Nigeria’s Energy Transition Plan indicate modest growth in charging infrastructure, with only about 60 stations expected by 2030.
This has raised concerns about whether the country can meet its long-term electrification targets without substantial private and public sector investment.
For now, many EV owners rely on home charging solutions using portable charging cables connected to household electricity outlets.
However, this approach is also affected by frequent power outages, prompting users to explore alternative energy sources such as solar power and backup generators.
The unreliable electricity supply is also shaping consumer preferences. Extended-range electric vehicles, which combine battery power with a small fuel-powered engine, are gaining popularity as they offer a hybrid solution to Nigeria’s infrastructure challenges.
Boboye noted that sales of such vehicles have doubled in recent months, as consumers seek to balance lower operating costs with the reliability of a fuel backup system.
Other automakers are adopting similar strategies. Chinese brands such as BYD and Geely have expanded their footprint in Nigeria with electric and hybrid models tailored to markets with unstable electricity supply.
Leon Zhan, head of Tim Motors, said Nigeria’s large automotive market presents a unique opportunity to transition gradually from used vehicles to newer and cleaner alternatives.
“Nigeria is one of the largest car markets in Africa, but it is dominated by second-hand vehicles. We want to change that,” Zhan said.
The dominance of used vehicles, many of which are older and less fuel-efficient, has long been a challenge for Nigeria’s efforts to modernise its transport system and reduce emissions.
Analysts believe that while electric cars are gaining attention, motorcycles and tricycles may offer a faster route to widespread electrification due to their affordability and widespread use.
Nigeria has an estimated 15 million motorcycles, many of which are used for commercial transport. With petrol prices rising sharply after subsidy removal, operators in this segment are increasingly seeking cost-effective alternatives.
Experts say electrifying motorcycles and tricycles could significantly reduce fuel consumption and emissions while providing immediate economic relief to operators.
The Federal Government’s tax waiver policy is therefore seen as a foundational step in a broader transition that will require coordinated efforts across multiple sectors, including energy, transport, and manufacturing.
While challenges remain, particularly in electricity supply and infrastructure development, stakeholders agree that sustained policy support and private sector participation will be critical in determining the pace and success of Nigeria’s electric mobility journey.
