High interest rates, unreliable electricity supply and limited charging infrastructure are threatening the widespread adoption of electric vehicles (EVs) in Nigeria, industry experts have warned.
The experts said recent tax incentives by the Federal Government had helped lower the initial cost of electric vehicles and increased their presence on Nigerian roads, but warned that expensive financing and inadequate power infrastructure could undermine efforts to achieve mass adoption.
They called for affordable green financing, greater investment in renewable energy-powered charging stations and stronger incentives for local EV assembly to support Nigeria’s transition to cleaner transportation.
An EV user, Prince Mustapha Audu, said the cost advantage of electric vehicles became more significant when they were charged using renewable energy.
“I’ve not been to a petrol station for over four years. The car I use is an EV, and when I charge it with the NEPA light, it costs the equivalent of about N8,000 every two weeks,” he said.
Audu said the installation of solar panels at his home had further reduced his running costs.
“I actually use free electricity to charge my vehicle. So I’ve not paid for petrol to move around Abuja or travel to nearby states that I visit,” he added.
Nigeria’s EV market remains relatively small compared with those of other major African economies, including Morocco, South Africa and Egypt.
In the first half of 2026, the Federal Government approved tax waivers covering about 4,000 imported electric vehicles, with import duties reduced to zero under a clean mobility programme aimed at encouraging EV adoption and local assembly.
Under the fiscal incentives provided through the Energy Reforms Framework, pure battery-electric vehicles and qualifying extended-range electric vehicles are eligible for duty- and VAT-free importation. Hybrid vehicles and luxury models valued at $100,000 or more are excluded.
EV mobility and fleet economics consultant Victor Okwudili said economic pressures and inadequate infrastructure remained significant obstacles despite the growing visibility of electric vehicles.
“EVs are becoming more visible on Nigerian roads, but economic pressures and weak infrastructure continue to slow adoption,” he said.
Okwudili said increased ownership by influential Nigerians was helping to improve public acceptance of the technology.
“EV has been welcomed, from how I see it, and being in the auto dealership market, we’ve started seeing more EVs on our streets than we used to see this time last year. Some influential people have started driving EVs, which will flow down,” he said.
He noted, however, that inflation and declining purchasing power had weakened the wider automotive market.
“People are not buying cars like they used to. But I have not seen anybody that has bought an EV who wouldn’t want to try it again,” Okwudili said.
He argued that the price of EVs was not necessarily the main barrier, noting that some models were competitively priced against used internal combustion engine vehicles.
“EVs are actually cheaper than ICE vehicles in the real sense,” he said, adding that a sound EV could be bought for about $10,000, while used models could be obtained for around $6,000.
According to Okwudili, the more pressing problem is access to finance, with high interest rates making it difficult for individuals and businesses to fund vehicle purchases.
He also said most EV owners should be able to charge their vehicles at home rather than rely heavily on public fast-charging stations.
“It’s just like your phone. Your phone is designed to be charged in the wall socket, not constantly with a power bank,” he said.
Okwudili added that frequent use of fast chargers could affect battery longevity, arguing that public charging stations should largely serve as a backup for EV users.
A former Director of Policy and Strategy at the National Automotive Design and Development Council (NADDC), Luqman Mamudu, said the Federal Government’s tax incentives had already had a positive effect on the market.
“Tax waivers introduced by the federal government have certainly helped. They brought down the initial cost and opened up the market, and we’ve seen a noticeable increase in EVs on Nigerian roads,” Mamudu said.
He said, however, that most of the growth had been recorded in commercial e-mobility rather than private passenger vehicles and ride-hailing cars.
According to him, rising petrol prices have made electric two- and three-wheelers increasingly attractive to companies operating in the ride-hailing, logistics and delivery sectors.
He said local assembly was also beginning to contribute to the development of the sector, but argued that further policy support was required to sustain growth.
Mamudu identified the high cost of financing as one of the biggest barriers to mass EV adoption.
“The upfront cost is still one of the biggest barriers. The tax incentives have helped reduce the price, but EVs can still cost more than comparable petrol vehicles,” he said.
He added that affordable loans and green financing had helped drive EV adoption in countries where the technology was expanding rapidly.
“In Nigeria, interest rates are high, so many individuals and fleet operators have to find the money upfront. That makes it difficult to achieve mass adoption,” he said.
Mamudu also warned that unreliable electricity supply and a limited public charging network could discourage potential EV owners.
“Our power supply is still unreliable, and the public charging network is very limited and concentrated mainly in Lagos and Abuja,” he said.
He said some charging stations were forced to rely on generators when grid electricity was unavailable, undermining the environmental benefits of electric mobility.
“That creates a strange situation where you are charging a vehicle that is supposed to be cleaner using diesel or petrol,” Mamudu said.
He added that inadequate charging facilities outside major cities were creating what he described as “charging anxiety” among potential EV users.
“This is one reason we are likely to see more extended-range EVs and plug-in hybrids in Nigeria, because they provide a backup when charging infrastructure is not available,” he said.
Mamudu urged the government to move beyond import incentives by introducing measures that would make EV ownership more affordable and encourage local production.
“We need affordable green loans for fleet operators, logistics companies, civil servants, and other potential users. If people cannot finance the vehicle, reducing import duty alone will not solve the problem,” he said.
He also called for stronger incentives for companies assembling electric vehicles locally, including easier access to semi-knocked-down (SKD) and completely knocked-down (CKD) components.
He said increased local assembly could reduce costs, create jobs and support the development of a domestic supply chain.
“The opportunity for Nigeria is not simply to become a market for imported EVs. We should use the EV transition to build a local manufacturing and mobility industry around it. That, to me, is where the real long-term value lies,” Mamudu said.
Meanwhile, renewable energy expert Dr Damilola Asaleye said Nigeria could reduce its dependence on the national grid for EV charging by expanding renewable energy solutions.
She said solar-powered mini-grids could provide a practical alternative for charging electric cars, tricycles and other forms of e-mobility, particularly in areas with unreliable grid electricity.
“We don’t have to wait for the national grid for us to be able to power the electric vehicle. The way to it is to use the existing resources in the country in terms of renewable energy,” Asaleye said.
She said some companies were already operating charging stations powered entirely by solar mini-grids, including facilities supporting electric tricycles in rural communities.
“I’ve seen a lot of electric vehicles that are being charged by renewable energy. In several mini-grids, electric charging stations and tricycles are 100 per cent on solar systems,” she said.
Asaleye called for stronger government support for renewable energy deployment, particularly in low-income and last-mile communities.
She said incentives should extend beyond financing to include subsidies for technical equipment and other resources needed to make renewable energy systems more affordable.
“Some incentives are already available, but because of technicalities, equipment remains expensive to procure. There is a need for incentives in terms of subsidy, technical equipment, and resources required to deploy renewable energy more affordably,” she said.
