The Nigerian Senate has approved the Electric Vehicle Transition and Green Mobility Bill for its second reading.
Reported by Channels, the bill, sponsored by Senator Orji Uzor Kalu, aims to strengthen Nigeria’s automotive and energy sectors by facilitating the phasing out of petrol vehicles and the shift to electric vehicles (EVs).
It proposes a national framework to encourage local EV manufacturing and guide Nigeria toward increased environmental sustainability.
The bill also outlines incentives for importers, investors, and EV users, including tax holidays, road tax reliefs, import duty waivers, toll exemptions, and subsidies.
It also introduces strict rules for foreign automakers, including a requirement to partner with Nigerian EV assemblers, set up local EV assembly plants within three years, and source at least 30 per cent of content locally.
Non-compliance with these provisions could result in financial penalties of up to ₦250 million per breach. Unlicensed EV importers could also be fined ₦500 million and their goods seized.
The bill also mandates that EV assemblers produce a minimum of 5,000 units that meet international safety and technical standards annually. This is intended to make Nigeria the leading EV manufacturer in Africa.
Nigeria’s electric vehicle adoption has been on the rise. Nigeria has over five electric vehicle companies, and Nigerian car manufacturer Innoson unveiled its first made-in-Nigeria electric vehicle in 2024.
However, Infrastructure scarcity remains a significant problem in EV adoption in Nigeria. To remedy this, the bill mandates that every fuel outlet must have an EV charging station. It also offers government grants and tax credits to investors building charging stations.
Nigeria is not the first African country to consider policies that bolster EV adoption. In 2024, Ethiopia passed a law banning the import of fuel-powered vehicles and rolled out incentives for importing EVs.
However, over a year later, EV adoption remains low.
Although the bill does not propose a policy as stringent as Ethiopia’s, its success depends on whether the Nigerian market is ready for widespread EV adoption and on how well the bill’s provisions, if passed into law, are implemented.
Nonetheless, the bill has been passed on to the Senate Committee on Industry for review and will return to the Senate chamber in four weeks.
