The Federal Government has approved tax waivers for almost 4,000 electric vehicles imported into Nigeria during the first half of 2026, in a fresh effort to drive the adoption of cleaner transportation.
The approvals, according to government data reviewed by Reuters, represent the first batch processed under a new programme aimed at promoting electric mobility through tax incentives and local vehicle assembly.
The initiative comes as Nigeria seeks to reduce its dependence on petrol and diesel vehicles, despite major constraints in electricity supply and the limited availability of public charging stations.
Under its 2022 Energy Transition Plan, Nigeria aims to have electric vehicles account for 60 per cent of its vehicle fleet by 2050.
The country, however, remains at an early stage of the transition, with industry dealers estimating that electric vehicles currently account for less than one per cent of vehicles on Nigerian roads.
The government has introduced several fiscal measures to make EVs more affordable. Electric vehicles were exempted from value-added tax in 2024, while import duties on EVs were reduced from five per cent to zero this year.
The incentives are also coming at a time when rising petrol prices have increased the cost of transportation following the removal of the petrol subsidy in 2023.
For motorists and commercial transport operators, the lower running costs associated with electric vehicles are increasingly making them an attractive alternative to conventional petrol-powered vehicles.
But Nigeria's weak power infrastructure presents a major challenge to the government's electric mobility ambitions.
The national grid generates around 4,000 megawatts for a population of more than 200 million people, leaving households and businesses heavily dependent on petrol and diesel generators.
The emerging electric vehicle industry has not escaped the problem. Charging stations and other EV businesses often depend on generators when grid electricity is unavailable.
Bolanle Boboye, an executive at Saglev, an EV manufacturer affiliated with Chinese automaker Dongfeng, said Nigeria should pursue the development of electric mobility alongside improvements in the power sector.
“If we wait for electricity to become perfect before adopting EVs, the rest of the world will leave us behind,” he said.
Boboye also argued that EVs could deliver environmental gains even when the electricity used to charge them comes partly from diesel generators.
Nigeria's charging infrastructure remains particularly limited. A policy brief reviewed by Reuters estimated that the country had only about 48 public charging stations by the end of 2025, with most located in Lagos and Abuja.
South Africa had more than 500 public charging stations during the same period, highlighting the infrastructure gap between the two countries.
The shortage means many Nigerian EV owners charge their vehicles at home using portable charging equipment. However, frequent power outages can make even home charging difficult.
The situation has encouraged demand for extended-range electric vehicles, which use batteries for propulsion but have small fuel-powered generators that provide additional range when batteries run low.
Boboye said sales of such vehicles had doubled this year as consumers looked for a compromise between electric mobility and the realities of Nigeria's power supply.
Chinese automakers such as BYD and Geely have also increased their presence in Nigeria with electric and hybrid models.
Tim Motors, Geely's Nigerian partner, said new-energy vehicles currently account for about two per cent of its sales.
Leon Zhan, the company's head, said Nigeria's large vehicle market offered an opportunity to replace the country's predominantly second-hand vehicle fleet with newer and cleaner automobiles.
Electric motorcycles and tricycles could also play a major role in the transition.
With Nigeria having more than 15 million motorcycles, industry operators believe commercial two- and three-wheelers could be among the fastest segments to electrify.
Stanley Nwankwo, co-founder of electric mobility company Donda X Limited, said electric motorcycles and tricycles had reduced operating costs by about two-thirds compared with petrol-powered alternatives.
Companies such as MAX and Spiro are meanwhile developing battery-swapping networks to address the charging problem. Riders can exchange depleted batteries for fully charged ones within minutes, allowing commercial vehicles to return to service quickly.
The latest tax waivers are expected to help lower the initial cost of EV ownership. However, industry stakeholders say sustained growth will require more than fiscal incentives.
Reliable electricity, expanded charging infrastructure, investment in battery technology and a stronger local assembly ecosystem will be critical if Nigeria is to move from pilot-scale electric mobility to widespread adoption and meet its 2050 target.
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