The Federal Government has approved tax waivers for nearly 4,000 electric vehicles (EVs) imported into Nigeria during the first half of 2026, as part of efforts to accelerate the country’s transition to cleaner transportation.
The approvals are the first to be processed under a new government programme aimed at promoting electric mobility through tax incentives and local vehicle assembly initiatives.
Nigeria’s 2022 Energy Transition Plan targets having electric vehicles account for 60 per cent of the country’s vehicle fleet by 2050. However, EV adoption remains at an early stage, with industry estimates suggesting that electric vehicles currently make up less than one per cent of vehicles on Nigerian roads.
The government has introduced several measures to encourage adoption. Electric vehicles were exempted from Value Added Tax in 2024, while import duties on EVs were reduced from five per cent to zero in 2026.
Despite these incentives, inadequate electricity supply and limited charging infrastructure remain major obstacles. Nigeria’s national grid supplies about 4,000 megawatts to a population of more than 200 million people, forcing many homes and businesses to depend on petrol and diesel generators.
The shortage of reliable electricity has also affected EV businesses. Some charging stations, dealerships and battery-swapping operators rely on generators when grid electricity is unavailable.
Bolanle Boboye, an executive at Saglev, Nigeria’s first electric vehicle manufacturer affiliated with Chinese automaker Dongfeng, said Nigeria should pursue its energy and transport transitions simultaneously.
“If we wait for electricity to become perfect before adopting EVs, the rest of the world will leave us behind,” Boboye said.
He added that electric vehicles could still reduce emissions even when charged using electricity generated by diesel-powered generators.
Nigeria’s public charging network also remains limited. A policy brief reviewed by Reuters estimated that the country had only about 48 public EV charging stations as of late 2025, with most located in Lagos and Abuja. South Africa, by comparison, had more than 500 public charging stations.
As a result, many Nigerian EV owners rely on home charging, although frequent power outages make this difficult. Extended-range electric vehicles, which combine battery power with a small fuel-powered engine, are consequently gaining popularity.
Boboye said sales of extended-range vehicles had doubled in 2026 as consumers sought the lower operating costs of electric propulsion while retaining a fuel-powered backup.
Chinese automakers, including BYD and Geely, have also expanded 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.
Electric motorcycles and tricycles could also play a major role in Nigeria’s transition to electric mobility. With more than 15 million motorcycles in the country and rising petrol costs, commercial riders have a strong incentive to reduce fuel expenses.
Stanley Nwankwo, co-founder of electric mobility company Donda X Limited, said electric motorcycles and tricycles could reduce operating costs by about two-thirds compared with petrol-powered alternatives.
Companies such as MAX and Spiro are investing in battery-swapping networks, allowing riders to replace depleted batteries with fully charged ones within minutes rather than waiting hours to recharge.
The Federal Government’s tax waivers could therefore help reduce the upfront cost of EVs and encourage wider adoption. However, experts say the success of Nigeria’s electric mobility ambitions will ultimately depend on improving electricity supply and expanding charging infrastructure.