Nigeria’s Electric Vehicle Transition and Green Mobility Bill 2025: A Data-Driven Opportunity for Sustainable Transformation

Nigeria stands on the brink of a transportation revolution. With over 230 million people and an estimated 12 million vehicles on its roads, nearly all powered by internal combustion engines (ICE), the environmental, economic, and public health costs of fossil fuel dependency are becoming increasingly unsustainable. According to data presented in Dr. Lawal Y. Gada’s analysis of the Electric Vehicle Transition and Green Mobility Bill 2025, road transport is a major contributor to carbon emissions in Nigeria and globally.

The proposed Electric Vehicle Transition and Green Mobility Bill 2025, currently before the Senate and sponsored by Senator Orji Uzor Kalu, offers a comprehensive legal framework to decarbonize Nigeria’s transport sector. It sets ambitious goals: promoting local EV manufacturing, accelerating nationwide EV adoption, developing charging infrastructure, creating jobs, positioning Nigeria as a regional leader in clean mobility, and integrating renewable energy into transportation systems.

This policy is not just aspirational, it is urgently needed. Studies show that transitioning to electric mobility could save Nigeria up to ₦4.5 trillion annually in avoided fuel imports, healthcare costs from air pollution, and environmental degradation. These figures underscore the bill’s potential to drive both climate action and economic transformation.

Key Provisions Backed by Strategic Intent

The bill mandates critical structural reforms across the automotive value chain:

• Local Content Development: Under Part II, Clause 2(1), foreign automakers must partner with licensed Nigerian assemblers and establish local assembly plants within three years of operation. They must also achieve at least 30% local sourcing of vehicle components by 2030.

This provision directly supports industrialization and job creation. The National Automotive Design and Development Council (NADDC) will enforce compliance through annual audits, ensuring accountability.

• Licensing Thresholds: To qualify as a “Licensed Nigerian Assembler,” an entity must demonstrate a minimum production capacity of 5,000 vehicles per year, meet international safety standards set by the Standards Organisation of Nigeria (SON), and prove financial and technical sustainability (Clause 3).

While this ensures quality and scale, it raises concerns about inclusivity—particularly for startups and small enterprises seeking entry into the EV market.

• Nationwide Charging Infrastructure: Clause 11(1) mandates that all fuel stations in Nigeria install EV charging points from the commencement of the Act. Additionally, private investors setting up charging stations will be eligible for grants and tax credits—a strong incentive for private-sector participation.
• Incentives for Adoption: Individuals and businesses adopting EVs will benefit from:
  • Tax holidays
  • Waivers and subsidies
  • Exemption from road tax and emission testing
  • Toll-free access to highways

These incentives are designed to lower ownership barriers and stimulate demand.

• Regulatory Coordination: The Ministry of Industry, Trade, and Investment will serve as the lead coordinator (Clause 8), supported by key agencies including:
  • Standards Organisation of Nigeria (SON) – Ensuring EVs and components meet global safety standards.
  • Ministry of Power – Integrating renewable energy into EV charging infrastructure and working with NERC on tariff structures.
  • Federal Inland Revenue Service (FIRS) – Administering tax incentives and monitoring fiscal impacts.
  • Federal Ministry of Environment – Developing guidelines for safe battery recycling and aligning policies with Nigeria’s Paris Agreement commitments.

Economic and Environmental Impacts Are Substantial

According to projections cited in the presentation by Greenado International Limited, full implementation of the bill can unlock transformative outcomes:

• Job Creation: Thousands of direct and indirect jobs can be created across the EV value chain—from manufacturing and maintenance to battery swapping, software development (e.g., apps like ConnectVolt), and green workforce training programs targeting youth and women.
• Investment Attraction: By mandating local partnerships and offering fiscal incentives, Nigeria can attract significant foreign direct investment (FDI) into its nascent e-mobility industry.
• Carbon Emission Reduction: Replacing even 10% of Nigeria’s current ICE fleet with EVs could reduce annual CO₂ emissions by millions of tonnes, contributing meaningfully to national climate targets under the Nationally Determined Contributions (NDCs).
• Energy Security: Nigeria spends billions of dollars annually subsidizing petrol imports. A shift to EVs powered by domestic solar, wind, and hydro resources enhances energy independence and reduces exposure to volatile global oil prices.

Critical Challenges Must Be Addressed

Despite its strengths, several challenges threaten equitable and rapid implementation:

1. High Entry Barriers for Startups

As highlighted in Dr. Gada’s presentation, the requirement of 5,000 units per annum production capacity may exclude emerging entrepreneurs and SMEs from participating in the EV ecosystem. This could stifle innovation and slow grassroots adoption.

Recommendation: Introduce tiered licensing categories (micro, small, medium) with differentiated capacity thresholds. Support incubation hubs and provide technical assistance through institutions like NADDC and organizations such as ClimEdge Hub Limited.

2. Lack of Dedicated Funding Mechanism

There is no explicit provision for a dedicated financing vehicle to support pilot projects, skills development, or rural deployment.

Recommendation: Establish an Electric Mobility Development Fund, financed through carbon levies, climate finance instruments (e.g., Green Climate Fund), and PPPs. This fund should prioritize inclusive projects that address energy poverty, indoor air pollution, and e-waste management.

3. Grid Capacity and Renewable Integration

While the Ministry of Power is tasked with ensuring adequate supply for EV charging, Nigeria’s grid remains unstable, with only about 45% of households connected and frequent outages.

Recommendation: Accelerate off-grid solar-powered EV charging solutions, especially for two-wheelers and commercial fleets in urban and peri-urban areas. Promote battery swapping models to reduce strain on the grid and lower upfront costs for users.

4. Battery Recycling and E-Waste Risks

With no formal system yet in place, improper disposal of EV batteries could lead to future environmental hazards.

Recommendation: Enshrine Extended Producer Responsibility (EPR) in law, requiring manufacturers to take back used batteries. Develop localized recycling facilities using circular economy principles to recover lithium, cobalt, and nickel.

Conclusion: From Policy to Inclusive Action

The Electric Vehicle Transition and Green Mobility Bill 2025 is more than legislation—it is a national imperative backed by compelling data and global trends. Countries like Kenya, South Africa, and Morocco are already advancing their e-mobility agendas; Nigeria has the opportunity to leapfrog them by leveraging its large population, growing tech ecosystem, and abundant renewable energy potential.

However, success hinges on inclusive implementation. We must ensure that startups, women-led enterprises, rural communities, and young technicians are not left behind. As someone deeply involved in electric mobility strategy, market intelligence, and green workforce development, I call on policymakers to:

• Pass the bill swiftly
• Lower entry barriers for innovators
• Create the EV Development Fund
• Foster public-private collaboration
• Invest in skills and infrastructure

With political will, mentorship, and strategic funding, Nigeria can build a zero-emission transport future that is sustainable, scalable, and socially inclusive.

Let us pass this bill—not just for cleaner cars, but for cleaner air, better health, greener jobs, and a more resilient Nigeria.