Senate: Electric Vehicle Bill Reaches Second Reading

Nigeria is making a key move to greener mobility. The Senate has passed the Electric Vehicle Transition and Green Mobility Bill to its second reading, setting the stage for what could be one of the landmark transitions from petrol-powered cars to electric vehicles.

Sponsored by Senator Orji Uzor Kalu, a bill to reshape Nigeria’s automotive and energy sectors toward sustainability and the promotion of local EV manufacturing has been drafted. If passed into law, this could be one of those significant moments in Nigeria’s journey toward reduced carbon emissions and modernizing transport.

Kalu said the bill, when passed into law, would “facilitate the phasing out of petrol vehicles and promote local EV production that aligns with global clean energy standards.”

A Push for Local Production and Cleaner Transport

The new bill envisions a definitive roadmap for the transition of manufacturers, importers, and investors into electric mobility. It intends to provide tax holidays, import duty waivers, toll exemptions, and subsidies for companies that support the EV ecosystem.

Still, it ushers in stringent guidelines for foreign motor manufacturers, making them compelled to form partnerships with domestic assemblers, building assembly plants within three years of operation, and sourcing at least 30 percent of production content locally. The penalty for non-compliance shall be up to ₦250 million for each infraction, while unlicensed importers shall be liable to a fine of ₦500 million, in addition to the forfeiture of the goods imported.

The legislation further states that assemblers of EVs must produce a minimum of 5,000 units annually that meet international safety standards, in a bid to make Nigeria the hub for EV manufacturing on the African continent.

Tackling Infrastructure Gaps

While there has been growing interest, infrastructure has impeded the adoption of electric vehicles in Nigeria. The bill tackles this issue headlong by making it compulsory for every fuel station to have an EV charging point. It also grants investors willing to put charging networks across the country government grants and tax credits.

Already, a few EV companies operate in Nigeria, and local manufacturer Innoson Motors just revealed its first homegrown electric car in 2024. But experts caution that long-term success has to include expansion of the charging infrastructure and, ultimately, affordability.

Image Credit: Innoson Vehicle

Lessons from Africa’s Green Transition

The move by Nigeria follows a wave of EV-friendly policy statements across the continent. In 2024, Ethiopia banned the importation of fuel-powered vehicles and rolled out incentives for the imports of EVs. Still, adoption has remained slow, highlighting the challenges accompanying such policy-driven transitions.

The proposal of Nigeria, however, is less stringent but expresses gradual implementation – a strategy believed by many to give the market ample time to adjust. The bill has been referred to the Senate Committee on Industry for review and is expected to return to the chamber within four weeks for further debate.

Paving the Way for a Greener Economy

The Electric Vehicle Transition and Green Mobility Bill, if effectively implemented, might become the turnaround point Nigeria’s energy and transport sectors need. The bill will provide a clear direction that strengthens the nation’s industrial base while reorienting it toward environmental sustainability through the emphasis on local production, clean energy, and innovation.