Nigeria wants more electric vehicles, but its EV bill could complicate things
The EV bill wants more Nigerians to switch to electric vehicles, yet it overlooks critical market challenges.
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The Electric Vehicle Transition and Green Mobility Bill, sponsored by Senator Orji Uzor Kalu (Abia North), was approved for a second reading by the Senate on Wednesday, November 5, 2025.<br />
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The bill, which has been referred to the Senate Committee on Industry for review and will return to the Senate Chambers in four weeks, seeks to facilitate Nigeria’s transition to electric vehicles (EVs).<br />
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If passed into law, Nigeria will join a growing list of African countries that have created policies to boost EV adoption, including Ethiopia, Kenya, and Rwanda.<br />
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Key provisions of the bill <br />
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The EV Transition and Green Mobility Bill lays out a framework to strengthen local EV production, drive adoption, and attract investment into Nigeria’s electric mobility sector. It also sets tougher conditions for foreign automakers doing business in the country.<br />
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First, it mandates that foreign automakers can only import, sell, or distribute their electric vehicles through local partnerships.<br />
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Secondly, foreign automakers operating in Nigeria are required to establish a local assembly plant within three years of their operations. They are also expected to source at least 30% of their vehicle components locally by 2030.<br />
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The bill also stipulates that local assemblers, manufacturers, importers, distributors, or sellers must obtain a license to operate. To qualify for a license, assemblers and manufacturers must demonstrate the ability to produce at least 5,000 electric vehicles annually.<br />
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Unlicensed dealers who engage in the importation, assembly, distribution, or sale of electric vehicles will be fined ₦500 million and have their goods confiscated. Foreign automakers who violate the bill’s requirements are also liable to a fine of ₦250 million for each act of non-compliance.<br />
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Beyond the strict requirements for foreign and local operators, the bill outlines incentives, including waivers, subsidies, and tax holidays for individuals and businesses in the electric vehicle business; exemptions from r...
