The Federal Government has thrown open the doors for more electric vehicles to hit Nigerian roads, approving tax waivers for almost 4,000 EVs imported into the country in the first half of 2026.
The fresh incentive is part of an ambitious government drive to make electric mobility more attractive to Nigerians and encourage cleaner alternatives to petrol and diesel-powered vehicles.
But there is a major twist.
Nigeria is trying to promote electric cars at a time when the country itself is struggling to produce enough electricity to keep homes and businesses running.
Government figures reviewed by Reuters showed that the latest approvals represent the first set of vehicles processed under a new programme designed to promote electric mobility through fiscal incentives and local vehicle assembly.
The move signals a renewed push by the Federal Government to transform the way Nigerians move around, with electric and hybrid vehicles gradually gaining ground in a market long dominated by petrol and diesel cars.
FG Dangles More Incentives
The latest tax waivers are not the government’s first attempt to make EVs cheaper.
Nigeria removed Value Added Tax on electric vehicles in 2024 and has now reduced import duties on EVs to zero per cent, from five per cent.
The measures are coming at a time when petrol prices have soared following the removal of the fuel subsidy in 2023.
With motorists and commercial transport operators battling rising fuel costs, electric vehicles are increasingly being promoted as a way of cutting running expenses.
But the government’s dream of putting millions of electric vehicles on Nigerian roads remains a tall order.
60% EV Target By 2050
Under Nigeria’s Energy Transition Plan launched in 2022, the government wants electric vehicles to make up about 60 per cent of the nation’s vehicle fleet by 2050.
For now, however, the reality is far different.
There are no reliable official figures showing exactly how many electric vehicles are currently operating in Nigeria. Industry players cited by Reuters estimate that EVs still represent less than one per cent of the country’s vehicle fleet.
That means the country has a huge distance to cover before it can come anywhere near its 2050 target.
The Big Electricity Problem
Perhaps the biggest threat to Nigeria’s EV ambitions is staring everyone in the face — electricity.
The national grid generates around 4,000 megawatts for a population of more than 200 million people.
As a result, power outages remain a daily reality for millions of Nigerians, with households and businesses routinely turning to petrol and diesel generators.
Now, even the electric vehicle industry is being forced to rely on generators.
Charging stations and other businesses involved in electric mobility often resort to alternative power sources when the national grid fails.
‘Don’t Wait for Perfect Power’
Despite the obvious challenge, industry operators insist Nigeria should not put its EV ambitions on hold.
Bolanle Boboye, an executive at Saglev, an electric vehicle manufacturer affiliated with Chinese automaker Dongfeng, said Nigeria could not afford to wait until its electricity system became perfect.
According to him, the country should develop its power sector and electric transport system at the same time.
He also argued that electric vehicles could still provide environmental benefits even when the electricity used to charge them comes from diesel-powered generators.
Only 48 Public Chargers!
The charging infrastructure situation paints an even more troubling picture.
A policy brief reviewed by Reuters estimated that Nigeria had only about 48 public EV charging stations by the end of 2025.
Most of them were concentrated in Lagos and Abuja.
South Africa, meanwhile, had more than 500 public charging stations.
The huge gap highlights the infrastructure challenge confronting Nigeria as it attempts to move millions of vehicles from petrol and diesel to electricity.
Many Nigerian EV owners therefore have little choice but to charge their vehicles at home.
But that solution comes with its own headache.
When the power goes off, the vehicle stays parked unless the owner has access to a generator or another source of electricity.
EVs With Petrol Backup Gain Ground
The unreliable electricity supply is already influencing the type of electric vehicles Nigerians are buying.
Extended-range electric vehicles, which use electric propulsion but have a small fuel-powered system to extend their driving range, are reportedly becoming more popular.
Boboye said sales of such vehicles had doubled this year as buyers sought the advantages of electric driving without completely depending on the national grid.
The strategy is simple: drive electrically when possible, but have fuel available as a backup when charging becomes difficult.
Chinese manufacturers such as BYD and Geely are also expanding their footprints in Nigeria with electric and hybrid vehicles.
Tim Motors, Geely’s Nigerian partner, said new-energy vehicles currently account for around two per cent of its sales.
Motorcycles May Lead the Charge
But the real electric revolution in Nigeria may not start with expensive electric cars.
It could begin with commercial motorcycles and tricycles.
Nigeria has more than 15 million motorcycles, and thousands of commercial riders spend a significant portion of their daily earnings buying petrol.
With fuel prices hitting their pockets hard, electric motorcycles could offer a cheaper alternative.
Stanley Nwankwo, co-founder of Donda X Limited, said electric motorcycles and tricycles could reduce operating expenses by about two-thirds compared with petrol-powered models.
For commercial riders struggling with fuel costs, the potential savings could be a powerful incentive to switch.
Battery Swapping Changes the Game
Companies in the sector are also trying to solve the charging problem through battery swapping.
Mobility firms such as MAX and Spiro are developing networks where riders can remove a depleted battery and replace it with a fully charged one within minutes.
The idea eliminates the need for commercial riders to wait for hours while their batteries recharge.
Batteries can instead be charged at central locations when electricity is available and supplied to riders through swap stations.
Tax Break Is Only the Beginning
The approval of tax waivers for nearly 4,000 EVs represents a major vote of confidence in Nigeria’s emerging electric mobility sector.
But it also raises a difficult question:
Can Nigeria build an electric vehicle revolution without first fixing its electricity crisis?
The government can slash taxes and make EVs cheaper to import. Manufacturers can bring in more models. Investors can build charging and battery-swapping networks.
But unless motorists can reliably power their vehicles, Nigeria’s electric dream could remain stuck between ambition and reality.
For now, the Federal Government has made it cheaper to bring electric vehicles into Nigeria.
The bigger challenge is making sure there is enough power to keep them moving.
Don’t Miss Out! Join our WhatsApp Channel for instant news updates. Click here to join
ALSO READ:
FROM EMPTY COFFERS TO ₦27TRN! Nigeria’s Tax Story Takes Dramatic Turn
Why we demand customers’ tax ID for electricity bills — Ikeja Electric
