Mainstreaming Electric Vehicles in Nigeria

Advanced vehicle technology has transformed the transportation industry and taken the world by storm. How can Nigeria position itself to take advantage of the emerging technology?

Around the world, several countries have already begun phasing out diesel-driven cars, with EVs taking the stage. EV sales in 2021 were estimated to reach 5.6 million units, up from 2.1m in 2019 and 3.1m in 2020. The International Energy Agency (IEA) projects that EV units will reach 145 million by 2030 – about 7 per cent of all new and used registered vehicles in the same year.

Given Nigeria’s current population growth rate and trajectory, meeting our emissions target will require quick decarbonisation of the transport sector. The adoption of EVs is one sure way to do this. Large-scale adoption of EVs would enhance renewable energy development, lower carbon emissions, and eradicate the need for expensive petroleum subsidies. Although the pace of EVs adoption in Nigeria is relatively slow, there has been some momentum. Last year, Vice President Yemi Osinbajo launched the first in-country-made Electric Vehicle (the Hyundai Kona by Stallion Motors). In April, the first EV charging station was unveiled by the National Automotive Design and Development Company at the Usmanu Danfodiyo University, Sokoto State.

While these steps taken by the government are quite positive for EV adoption in Nigeria, a lot still needs to be done to mainstream EVs in the country. For many, the limitations to adopting EVs are quite high. These limitations make it harder for clean transport solutions to be adopted at a large enough scale to dent the emissions from the sector.

Some of the challenges include;

• Affordability: While EVs are potentially cheaper than internal combustion engine vehicles with time, they demand high initial costs. A customer could pay up to €10,000 (₦6,000,000) extra for an electric car of comparable specs. Also, given that the majority of Nigerians purchase used vehicles, the used car market is heavily dominated by ICE vehicles. To scale EV adoption in Nigeria, there would need to be a drastic reduction in EV costs and a global market for used EVs. This is bound to take time.
• Poor Electricity Access and Reliability: Nigeria still suffers from energy supply challenges, with access still below 60 per cent. Ensuring nationwide adoption of EVs will require the development of EV charging infrastructure which will depend on electricity. Solving this will require the incorporation of EV charging infrastructure in current energy access planning.
• Lack of Technical Expertise: Currently, there is a knowledge gap in the maintenance and production of electric vehicles. Major automobile mechanics are streamlined to repairing and maintaining internal combustion engine vehicles. There are no infrastructures or technical know-how when dealing with EV batteries and associated challenges.

Resolving these challenges will require the implementation of innovative business and deployment models.

The government must develop a robust EV policy framework with feasible targets and goals. Also, policymakers need to create an enabling environment for the local production and manufacture of EVs. Secondly, in tackling the affordability challenge, the government should consider tapping into used EVs and providing financial incentives for citizens to accelerate their adoption, as seen in Ghana, where the government has implemented a tax incentive by removing the import duty levies on electric vehicles.

Finally, the government and policymakers should incorporate EV manufacture and maintenance training for those in the automotive field. Proper EV Information campaigns are necessary to prevent misinformation on EVs and highlight the benefits of EVs to the transportation industry, economy, and climate.