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Nigeria's EV ambitions face reality of weak electricity supply

Created at 12 Aug · 6:13 AM1 source↑ Market-relevant
IN SHORT

Nigeria approved tax waivers for nearly 4,000 electric vehicles in the first half of the year, aiming to boost EV adoption. However, chronic electricity shortages and limited charging infrastructure pose significant challenges to the country's ambitious electric vehicle goals.

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Key Numbers

4,000electric vehicles approved for tax waivers
60%projected EV fleet share by 2050
1%estimated current EV fleet share
2023year of petrol subsidy removal
4,000megawatts grid capacity
200 millionNigeria's population
5%previous import duty for EVs
48public EV charging stations as of late 2025
500public EV charging stations in South Africa
60projected charging stations by 2030
15 millionmotorcycles on Nigerian roads

Who's Involved

Bolanke Boboye
Executive at Saglev, Nigeria's first EV manufacturer
Leon Zhan
Head of Tim Motors, Geely's local partner
Stanley Nwankwo
Co-founder of Donda X Limited, an electric mobility startup

↳ Why This Matters

Nigeria's push for electric vehicles highlights a global trend towards cleaner transportation, but its success is critically dependent on overcoming fundamental infrastructure deficits, particularly in electricity supply. This situation underscores the challenges developing nations face in balancing environmental goals with economic realities and existing infrastructure limitations.

Key facts

  • Nigeria approved tax waivers for nearly 4,000 electric vehicles in the first half of 2024.
  • The government aims for EVs to constitute 60% of its vehicle fleet by 2050.
  • Nigeria's power grid capacity is around 4,000 megawatts for over 200 million people.
  • Public EV charging stations are limited, with approximately 48 available as of late 2025.
  • Extended-range EVs and hybrid models are seeing increased sales due to charging constraints.
  • Electric motorcycles and three-wheelers are seen as a viable near-term electrification option.

Nigeria has approved tax waivers for nearly 4,000 electric vehicles in the first half of 2024 as part of a government program to promote cleaner transport. This initiative aligns with the country's 2022 Energy Transition Plan, which projects electric vehicles to comprise 60% of its fleet by 2050, a significant increase from the current estimated less than 1%.

The government has implemented incentives such as exempting EVs from value-added tax in 2024 and reducing import duties to zero from 5%. The removal of a petrol subsidy in 2023 has also heightened interest in electric alternatives.

However, Nigeria's ambition faces a major hurdle in its chronically underdeveloped power sector. With a national grid capacity of only around 4,000 megawatts serving over 200 million people, the country experiences severe electricity shortages, forcing households and businesses to rely heavily on diesel and petrol generators. This unreliability extends to the EV ecosystem, with charging stations and operators dependent on backup generators.

Despite these challenges, some industry figures believe EV adoption is necessary to avoid being left behind globally. Bolanle Boboye of Saglev noted that even EVs charged by generators can reduce overall emissions. Public charging infrastructure remains limited, with only about 48 stations nationwide as of late 2025, leading many owners to charge at home.

The unreliable electricity supply is also influencing vehicle choices, with extended-range EVs and hybrid models gaining traction. Chinese brands like BYD and Geely are expanding their presence with models suited to inconsistent power. Analysts suggest that electric motorcycles and three-wheelers present the most immediate electrification opportunity, offering substantial fuel savings for users and reducing reliance on the fragile grid through battery-swapping networks.

Frequently asked questions

Nigeria has approved tax waivers for EVs and cut import duties to zero. EVs were also exempted from value-added tax in 2024.

The primary challenge is Nigeria's chronic electricity shortage, with a national grid capacity of around 4,000 megawatts serving over 200 million people.

Many EV owners charge at home, and there is growing interest in extended-range EVs, hybrid models, and electric motorcycles/three-wheelers with battery-swapping networks.

The country's Energy Transition Plan aims for electric vehicles to make up 60% of its vehicle fleet by 2050.

What Happens Next

01The government's Energy Transition Plan aims for 60% EV fleet share by 2050.
02The policy brief projects about 60 public charging stations by 2030.

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Cadence

How It Developed

Nigeria approved tax waivers for nearly 4,000 electric vehicles in the first half of the year.
The government's Energy Transition Plan projects EVs to be 60% of its vehicle fleet by 2050.
EVs currently account for less than 1% of Nigeria's total vehicle fleet.
Nigeria exempted EVs from value-added tax in 2024 and cut import duties to zero this year.
Higher fuel costs following the removal of a petrol subsidy in 2023 have boosted interest in electric vehicles.
Nigeria's power grid struggles to serve its population of over 200 million people.
Charging stations, dealerships, and battery-swapping operators rely on backup generators.
Public EV charging infrastructure is limited, with about 48 stations as of late 2025.

Sources

T1
Nigeria's EV ambitions run into reality of weak electricity supplyReuters

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