Nigeria launches a fleet of electric taxis

From the newsletter

Nigeria was late to adopt electric vehicles, but its officials are now leading the charge on the use of EVs for public transport. The national government’s Energy Transition Plan (ETP) targets 13 million EVs by 2050, or 60% of the current fleet. In the meantime, state governments in Lagos, Ogun, Benue, and Borno have their own initiatives.

• This week, Benue Investment Property Company (BIPC) launched a fleet of solar-powered EV taxis in the Benue State capital, in collaboration with Nigerian EV firm Esse Mobility. It aims to deploy 500 units by December and create 8,500 green jobs. 

• Nigeria’s EV market is at an early stage, despite growing interest from both government and the private sector. While the landscape is currently dominated by compressed natural gas (CNG) initiatives, EVs are gaining ground.

More details

• Benue State’s Green Wheels initiative is not only introducing electric taxis but also investing in the infrastructure needed to sustain them. BIPC is establishing a dedicated assembly and charging station at its Mergemax facility, co-located with its CNG/petrol station. This localised support hub ensures regular maintenance, easy access to spare parts, and efficient vehicle charging. 

• BIPC is developing a mobile ride-hailing app that will enable passengers to book electric taxis on demand, 24/7. This digital integration aligns Benue’s transport system with global trends in smart mobility, providing a modern user experience while supporting fare transparency and operational efficiency.

• The taxis, each with a 500-kilometre range per charge, offer a practical solution for all-day urban and inter-town travel with minimal charging downtime. BIPC has already deployed over 20 electric and solar-powered vehicles as part of its Green Wheels taxi service, following their April 2025 delivery to kickstart operations across Makurdi, Gboko, and Otukpo towns.

• Lagos State leads the way with a $260 million investment through its LagRide partnership with CIG Motors, deploying 1,000 electric vehicles. The long-term plan includes 5,000 EVs and a supporting network of charging and maintenance infrastructure. Ogun State is also advancing e-mobility through Spiro, which has introduced electric motorbikes and battery-swapping stations.

• These projects reveal significant business opportunities across the e-mobility value chain. Local and international firms can explore ventures in EV assembly, charging infrastructure, battery technologies, and software solutions. Additionally, services like driver training, maintenance, and fleet management offer scalable models as demand grows across states.

• As Nigeria’s decentralised approach to transport electrification gains momentum, entrepreneurs and investors have a unique opportunity to tailor solutions to local transport realities while positioning themselves in a sector poised for long-term growth.

• Kano State, Nigeria's most populous state, with an estimated population exceeding 13 million, presents a compelling case for adopting electric mobility solutions. The urban area of Kano alone houses over 4 million residents, making it the second-largest city in Nigeria after Lagos.

Our take

• Local governments should stop relying on national directives and instead lead by launching community-based electric vehicle pilots. In Rwanda, this approach enabled Ampersand to scale quickly with local government support for designated parking and battery-swapping stations.

• State-owned mass transit agencies can partner with investors and EV firms to electrify fleets through phased leasing or joint ventures. Kenya’s BasiGo, in collaboration with public transport companies KBS and Citi Hoppa, successfully used a pay-as-you-drive model to deploy electric buses.

• Proactive local governments signal lower regulatory friction and faster implementation, making them attractive entry points for early-stage EV projects. Municipal-level partnerships also offer unique advantages such as access to local commuter data, land for infrastructure, and faster approvals.