Nigeria passes law to promote electric mobility

From the newsletter

Nigeria’s Senate has passed the Electric Vehicle Transition and Green Mobility Bill 2025. The bill outlines ambitious targets, including the development of nationwide EV charging infrastructure, incentives to accelerate the adoption of EVs by individuals, businesses and government agencies, as well as the integration of renewable energy into transport systems.  

• Once it becomes law, the bill gives Nigeria a clear framework for developing its electric mobility sector, which is still developing quickly. As one of Africa’s largest economies, Nigeria has the potential to become the continental leader in EV sales. 

• Nigeria has been lacking a comprehensive electric mobility policy to coordinate incentives, infrastructure rollout, vehicle standards, and investment channels. This uncertainty discourages serious investments from both local and international EV players. 

More details

• Nigeria's Electric Vehicle Transition and Green Mobility Bill 2025 was sponsored by Senator Orji Uzor Kalu, and was adopted by the Senate and passed its first reading on Wednesday. It seeks to position Nigeria as a regional leader in clean energy transportation and is designed to drive local innovation and foster local EV manufacturing industries. 

• At the same time, automakers must establish assembly plants within three years of starting operations and reach at least 30% local sourcing of components by 2030. Any violation of these terms could attract penalties, including suspension of operations and over N1 million ($654) fines.

• If implemented, Nigeria will join the growing list of African countries with EV policies. Kenya for instance launched the National E-Mobility Policy in March 2024, aiming for 5% of Kenya's vehicle stock to be electric by the end of 2025. The policy promotes local assembly and manufacturing of EVs and their components. 

• Rwanda introduced an EV policy in 2021, aiming to reduce transport emissions by 30% by 2030. The policy is designed to promote the adoption of EVs and charging infrastructure, with the goal of transitioning to a green transportation system. It includes various incentives and regulations to encourage both the purchase of EVs and the development of charging infrastructure. 

• Ethiopia has also implemented a comprehensive National Electric Vehicle Policy, marked by the bold move to ban imports of ICE vehicles and ambitious targets for EV adoption. The policy aims to transform Ethiopia into a leader in e-mobility in Africa, with a focus on reducing pollution, cutting fuel costs, and boosting local manufacturing. 

• Other countries that have developed EV policy frameworks include Morocco, Egypt and South Africa, which published a white paper on EVs in 2023, setting a roadmap for EV transition. Some countries like Ghana, Uganda and Tanzania have partial or developing EV policy frameworks.  

• National EV policies are crucial, especially in markets like Africa where the industry still needs strong government support to grow. These policies incentivize EV adoption, support the development of charging infrastructure, and address potential challenges associated with the shift to EVs. 

Our take

• Nigeria should establish a multi-agency implementation taskforce to oversee the rollout of incentives, infrastructure, and compliance mechanisms. Without swift execution, the bill risks stalling like earlier energy transition initiatives. 

• The Nigerian government should also Introduce clear, well-communicated financial incentives like VAT waivers, reduced import duties and EV loans for both consumers and fleet operators. Priority should be given to electric motorcycles and buses, which dominate Nigeria’s transport sector. 

• To meet the bill’s local content targets, Nigeria must develop EV industrial zones, incentivize battery and component manufacturing, and align technical training institutions to produce EV-ready talent. Strong enforcement of the three-year assembly rule is key.