Putting EVs on Nigerian Roads

The transportation sector remains one of the largest emitters of carbon globally. Emissions from transport vehicles directly impact ambient air quality and therefore have to be mitigated. One of such ways to mitigate these emissions is to find ways to reduce them. According to the International Energy Agency (IEA), the sector was responsible for 24% of total carbon emissions in 2020.[1] Road transportation accounts for 15% of global carbon emissions. Passenger vehicles are responsible for 45.1% of these emissions, while trucks and lorries contribute 29.4%.

One simple yet effective way to decarbonise the transport sector is to electrify vehicles. Replacing fossil fuel-powered vehicles with those powered by electricity will reduce emissions significantly. Electric vehicles, which are quite advanced in other parts of the world are now gaining traction in Africa. Countries like South Africa, Kenya, and Uganda are leading in adopting electric vehicles on the continent. These countries have initiated policies that aim to advance the adoption of e-mobility. One of such is the integration of mobilisation for a USD 900 million fund for electric vehicles and the necessary charging infrastructures in Rwanda’s Nationally determined contributions. There are successful cases of operational e-mobility solutions in the country. In 2019, the government of Rwanda rolled out its first electric vehicle. Since then, two other companies have entered the e-mobility market in Rwanda. Ampersand alone has sold over 20 electric motorcycles in Rwanda. Ampersand also has a waiting list of over 7,000 customers for their electric motorcycles.[2] South Africa has also enacted policies that aim to boost e-mobility. One of the policies in place is differentiated taxation on vehicle registration. This means that the tax paid for a vehicle depends on the type and size of the vehicle, which means lower taxes for electric vehicles. Aside from enabling policies, another factor contributing to the growth of electric mobility adoption is the high rate of investment into charging infrastructures. A charging station is situated between 200 – 300 kilometres of the country’s major highways.[3] South Africa currently boasts more than 170 EV charging stations distributed across the country.

There has been a low adoption rate of electric vehicles in Nigeria, with very few electric vehicles. Aside from the low amount of energy access in the country, the high cost of electric vehicles is another important factor that has limited the country’s mainstream adoption of electric vehicles. In addition, the unavailability of charging infrastructures poses a challenge. However, the growing number of mini-grids in the country presents an opportunity for increased EV adoption. One case of e-mobility adoption in the country serviced by off-grid power generation is in Gbamu Gbamu in Ogun state, Western Nigeria. Being implemented by Rubitec Solar, the project has seen the adoption of six electric bikes in the community, being jointly implemented with MAXNG. Elsewhere, MAXNG has been tapped to deploy electric motorcycles and three-wheelers in Ekiti State by the state’s government.

Factors identified in the successful cases from other African countries mentioned earlier can guide the expansion of e-mobility adoption in Nigeria. While International organisations like Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have initiated discussions and are working with mini-grid developers toward increasing e-mobility adoption, in the country, there is an obvious gap that still exists in policies, financing and infrastructure. Currently, Nigeria is yet to produce an e-mobility policy roadmap. In addition, market readiness is yet to be substantiated with hard facts. Also, subsidies for fossil fuels mean that e-mobility options are not a cost-competitive option.

Many argue that charging infrastructures must be available before investments can be made into purchasing electric vehicles.[4] However, others believe that investments in e-vehicles will drive the development of charging infrastructures in the country. Germany has adopted this strategy of stimulating e-mobility growth through proper charging infrastructures and, in 2013, proposed the implementation of more than 150,000 charging stations across the country by 2020. While there were just about 45,000 EV charging stations in Germany by 2020, the number of battery electric vehicles increased from 4,500 to over 300,000.[5]

Nigeria looks ripe for rapid, widespread adoption of electric vehicles. However, this will require the right policies that enable market-led growth in the sector. Also, there is a need for the provision of capital geared towards infrastructural development, including charging stations, as this will rapidly enable the adoption of clean vehicles.

 

Endnotes

[1] Cars, planes, trains: where do CO2 emissions from transport come from? – Our World in Data

[2] The Waiting List For Rwanda’s Ampersand Electric Motorcycles Is Now At 7000! – CleanTechnica

[3] Advancing Electric Mobility in Africa | UNFCCC

[4] Elektromobilitaet-Normen-bringen-die-Zukunft-in-Fahrt-Normen-und-Standards-flankieren-die-Marktentwicklung.pdf (researchgate.net)

[5] • Electric cars in Germany: registrations 2008-2021 | Statista

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