• Nigeria signed a memorandum of understanding with South Korea’s Asia Economic Development Committee to build an electric vehicle plant.

• The project targets annual production capacity of up to 300,000 vehicles and about 10,000 jobs.

• The initiative supports Nigeria’s push to reduce reliance on imported used vehicles.

On January 30, 2026, the Nigerian federal government signed a memorandum of understanding with South Korea’s Asia Economic Development Committee. The agreement aims to establish an electric vehicle manufacturing plant in Nigeria.

The project will roll out in phases. The first phase will focus on electric vehicle assembly. Later phases will transition toward fully integrated vehicle manufacturing. Once fully operational, the plant is expected to reach annual production capacity of about 300,000 vehicles and create roughly 10,000 jobs.

NIGERIA TO BECOME AFRICA'S FIRST ELECTRIC VEHICLE MANUFACTURING NATION.

On January 30, 2026, the Federal Government of Nigeria, through @OwanEnoh Senator John Enoh, Hon. Minister of State for Industry at the Federal Ministry of Industry, Trade and Investment (FMITI), signed a… pic.twitter.com/6ASR8yrhKp

— NADDC Nigeria (@NADDCouncil) January 31, 2026

This initiative emerges against persistent structural challenges in Nigeria’s automotive sector. Local component integration remains limited. At the same time, high production costs for locally assembled vehicles continue to encourage large-scale imports.

Nigeria ranks among the world’s largest importers of used vehicles. The country imports more than 200,000 units each year, according to government data.

The Nigerian government has stepped up measures to support electric mobility. In December 2024, the authorities launched a 20 billion naira consumer credit fund, equivalent to more than $12 million. The fund aims to facilitate purchases of locally assembled cars, tricycles, and motorcycles.

In March 2025, the federal government approved a 151.9 billion naira plan to introduce electric mass transit solutions in the northeastern region.

The partnership aligns with Nigeria’s efforts to establish a legal framework for electric vehicle adoption. The government anchors this transition in the National Energy Transition Plan and the National Automotive Industry Development Plan.

This article was initially published in French by Ingrid Haffiny (intern)

Adapted in English by Ange J.A de BERRY QUENUM