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Nigeria Passes Electric Vehicle Transition Bill

The Nigerian Senate has taken a significant step toward environmental sustainability and economic growth by passing the Electric Vehicle Transition […]

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The Nigerian Senate has taken a significant step toward environmental sustainability and economic growth by passing the Electric Vehicle Transition and Green Mobility Bill 2025 for its second reading. Sponsored by Senator Orji Uzor Kalu, the legislation seeks to establish a national framework for transitioning to electric vehicles, promoting local manufacturing and reducing the country’s carbon footprint. It aims to transform Nigeria’s automotive and energy sectors by fostering innovation and creating jobs across the manufacturing value chain.

To encourage adoption of electric vehicles, the bill offers incentives such as tax holidays, import‑duty waivers, and subsidies. It also mandates the installation of charging stations at all fuel outlets nationwide, ensuring a comprehensive charging infrastructure. Investors who establish charging stations will be eligible for government grants and tax credits, further stimulating industry growth.

The legislation emphasizes local content development. Foreign automakers must partner with licensed Nigerian assemblers and set up local assembly plants within three years, with assemblers required to source at least 30 percent of components locally by 2030. Assemblers must produce a minimum of 5,000 units annually, meeting international safety and technical standards. Non‑compliance can result in fines of up to 250 million naira per breach, while unlicensed EV importers face penalties of 500 million naira and confiscation of goods.

Senate President Godswill Akpabio praised the bill as a forward‑looking effort that aligns with President Bola Tinubu’s agenda for economic diversification and clean energy. The bill has been referred to the Senate Committee on Industry for further review and is expected to return to the chamber within four weeks. Its passage marks a major step toward a more sustainable, environmentally friendly transportation system in Nigeria, with the potential to reduce greenhouse‑gas emissions, promote economic growth, and support the country’s diversification objectives.

Ifunanya

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