Nigeria’s automotive landscape is undergoing a historic shift. In 2025, the nation’s electric vehicle (EV) market transitioned from a niche interest into a structured industrial sector. Current data estimates that between 15,000 and 20,000 electric vehicles are now navigating Nigerian roads. While this represents just under 1% of the national fleet, the trajectory is steep, driven by aggressive local assembly, landmark policy reforms, and a growing ecosystem of battery-swapping and charging solutions.
The cornerstone of this transition is the emergence of local production capacity. SAGLEV Electromobility Nigeria Limited has led the charge with its dedicated EV assembly plant in Imota, Ikorodu, Lagos—the first of its kind in Sub-Saharan Africa. The facility currently possesses an installed capacity to assemble approximately 2,600 vehicles annually on a single shift. However, the plant is designed for scalability; by implementing additional shifts, SAGLEV can ramp up production to 10,000 units per year without requiring further physical expansion. This industrial milestone was recently recognised by the Nigeria Auto Journalists Association, which named SAGLEV the "2025 Nigeria EV Brand of the Year."
This industrial growth is being met with robust regulatory tailwinds. The Federal Government’s 2025 EV import rules have significantly lowered barriers to entry, offering Value Added Tax (VAT) exemptions and removing import adjustment taxes on electric models. Under the "Nigeria First" policy, the National Automotive Design and Development Council (NADDC) has mandated that foreign automakers must partner with Nigerian firms to establish local plants, with a target of sourcing 30% of components locally by 2030. Dr Jumoke Oduwole, Minister of Industry, Trade and Investment, has emphasised that these frameworks are designed to build investor confidence and ensure that the green transition also catalyses domestic job creation.
However, the "Big Three" challenges of the Nigerian market—affordability, power stability, and infrastructure—require more than just assembly lines. While SAGLEV focuses on passenger cars, other players, such as Innoson Vehicle Motors (IVM) and Spiro, are diversifying the market with electric buses and two-wheelers. To address the fragile national power grid, manufacturers are increasingly integrating off-grid solutions. Many new EV models are now optimised for charging via 20kVA generators or dedicated solar-powered stations, reducing the dependency on the traditional utility sector.
Furthermore, the sector's growth is being sustained by innovative "Battery-as-a-Service" (BaaS) models and battery-swapping stations, which lower the vehicle's upfront cost—the primary hurdle for the average Nigerian consumer. As the NADDC continues its capacity-building programs, including specialised technician training and certification, the focus is shifting toward the "downstream" EV economy: maintenance, charging networks, and second-life battery recycling.
Cynthia Ebot Takang, Edited by Idriss Linge
Except for Tunisia entering the Top 10 at Libya’s expense, and Morocco moving up to sixth ahead of A...
Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...
Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...
Visit scheduled from February 4 to 6, 2026, at the invitation of President Hakainde Hichilema Tal...
The BCEAO granted Semoa a level-3 “full service” payment institution license on January 27, 2026...
Nigeria launches mobile app to connect women with economic services Platform targets 25 million women, President Tinubu says App centralizes...
Gabon Loisirs et Tourisme acquires Newrest Gabon operations Deal covers 300 employees, nine sites, and industrial catering services Takeover...
As the continent’s leading importer of milk powder, West Africa is seeing a surge in dairy demand that far outpaces local production. While store shelves...
S&P sees CFA franc devaluation as unlikely as reserves near 5 months of imports and inflation falls below 3%. Monetary calm secures parity, but...
Essaouira is a coastal city in Morocco, on the Atlantic Ocean, in the Marrakech–Safi region, about two and a half hours by road from Marrakech. It stands...
The Pan African Film & Arts Festival (PAFF) will run from February 7 to 22, 2026, in Los Angeles, positioning itself as a major soft power platform for...