Nigeria is taking a decisive step toward a sustainable transportation future as the Senate approves, for second reading, the Electric Vehicle Transition and Green Mobility Bill sponsored by Senator Orji Uzor Kalu. The proposed legislation seeks to phase out fossil fuel-powered vehicles and usher in a new era of electric mobility, positioning Nigeria as a potential leader in Africa’s clean energy revolution.
Coming at a time when the Federal Government is championing the adoption of compressed natural gas (CNG)-powered vehicles through President Bola Tinubu’s Presidential CNG Initiative (PCNGI), the bill represents an ambitious twin-track approach to energy transition in Nigeria’s transport sector. While the CNG initiative focuses on providing an affordable alternative to petrol, the new EV bill aims for a long-term, sustainable shift toward zero-emission transportation.
Beyond environmental benefits, the bill outlines an economic roadmap to strengthen local participation in the EV value chain. It proposes incentives such as tax holidays, import duty waivers, toll exemptions, and subsidies for investors, importers, and users, creating a fertile ground for both domestic and international investment. To boost industrial capacity, foreign EV manufacturers will be required to establish local assembly plants within three years and source at least 30% of raw materials locally.
Non-compliance, however, will attract strict penalties. Unlicensed EV importers may face fines of up to ₦500 million, and their vehicles could be seized. Approved local manufacturers must also produce a minimum of 5,000 units annually, adhering to global safety and technical standards.
Despite these bold policy moves, Nigeria’s road to electric mobility remains steep. The PCNG initiative, launched in August 2024, targets ride-hailing drivers as early adopters, but many remain cautious. While they acknowledge that EVs could reduce fuel and maintenance costs, concerns over battery durability, charging infrastructure, and the learning curve of new technology remain high.
Still, optimism persists that gradual adoption will follow as infrastructure expands and success stories emerge. If effectively implemented, the Electric Vehicle Transition and Green Mobility Bill could accelerate Nigeria’s transformation into a hub for clean energy vehicles paving the way for a greener, more self-reliant automotive industry.
