Nigeria’s electric vehicle (EV) market is set for accelerated growth in 2026, as industry executives project rising adoption driven by higher fuel costs, supportive policy signals, and increasing private sector investments.
This is according to separate interviews conducted by Nairametrics with EV distributors and assemblers operating across Lagos, Abuja, and Port Harcourt.
The executives disclosed that customer inquiries more than doubled in 2025, suggesting that 2026 could represent a tipping point for broader adoption among private buyers and commercial fleet operators.
What they are saying
Speaking on the sector’s outlook, Roxettes Group Chairman Dr. Kaycee Orji said the company, through Roxettes Motors, has deliberately championed electric vehicle adoption in Nigeria for several years, producing electric, hybrid, and internal combustion engine vehicles.
According to Orji, China’s aggressive transition to electric vehicles as a clear indication of where the global automotive industry is headed.
“China is migrating fully by 2030. They have already achieved about 70 to 80 percent of that transition—almost 90 percent,” Orji said, adding that ICE vehicles are expected to be phased out entirely in China by the end of the decade.
He warned that without a clearly defined EV transition strategy, Nigeria risks becoming a dumping ground for used ICE vehicles from countries enforcing strict phase-out timelines.
“The idea is to send a signal that Nigeria is not a dumping ground for used ICE vehicles from countries that are moving away from them,” he explained.
Central to accelerating adoption, Orji said, is the proposed Electric Vehicle Transition and Green Mobility Bill, 2025, which he described as largely comprehensive in addressing key barriers to EV uptake.
According to him, the bill mandates government agencies to transition to electric vehicles, with priority for locally assembled models.
He added that the legislation also aims to protect local investors by discouraging indiscriminate licensing of foreign EV assemblers without strong local partnerships, while proposing incentives such as special number plates to distinguish electric vehicles from ICE vehicles.
“In China, green number plates are for electric vehicles, while blue ones are for ICE vehicles. That visual distinction alone drives adoption,” Orji noted.
More context on the EV push
Beyond legislation, Orji highlighted existing fiscal incentives supporting the sector, including a reduced import duty of 10% on fully built electric vehicles.
He said local assembly would further enhance the benefits by creating jobs and adding value to the Nigerian economy.
He also referenced the Federal Government’s “Nigeria First” policy and ongoing efforts by the National Automotive Design and Development Council (NADDC) as steps toward a more investor-friendly automotive ecosystem.
“If Nigeria can sustain the tempo and the Electric Vehicle Bill is handled with speed, I see a boom in migration in 2026,” he said, adding that EV adoption would continue even without government backing due to their cost and efficiency advantages.
Other industry players echoed similar optimism. Olabisi Ajayi, chief executive of an EV import and distribution company, said the removal of fuel subsidies has strengthened the economic argument for electric vehicles.
“When you compare the running and maintenance costs of electric vehicles to petrol-powered alternatives—especially now—businesses are doing the math and switching,” Ajayi said.
Uche Madunagwu, another EV distributor, said sustained policy alignment with private investment could transform EVs from a niche option into a core part of Nigeria’s transport system.
“This year has the potential to set the foundation for a decade of growth,” he said.
Why this matter
The growing interest in electric vehicles reflects broader shifts in Nigeria’s energy and transportation landscape following fuel subsidy removal and persistently high petrol prices.
For businesses and individuals alike, EVs are increasingly being viewed not just as environmentally friendly alternatives, but as economically viable solutions with lower long-term operating costs.
If supportive legislation such as the Electric Vehicle Bill is passed and implemented effectively, Nigeria could reduce its dependence on imported used vehicles, stimulate local manufacturing, and position itself as a regional hub for electric mobility.
What you should know
Nigeria recorded a total passenger car import of N527 billion in the third quarter of 2025, more than double the N254 billion recorded in the same period in 2024.
- Data from the National Bureau of Statistics (NBS) foreign trade reports show that passenger vehicle imports rose sharply year-on-year.
- The federal government had instituted a National Action Plan for the Development of Electric Vehicles (EVDP), aiming for at least 30% of vehicles produced locally to be electric by 2032, alongside efforts to reduce reliance on imported vehicles.
- Fully built electric vehicles currently attract a reduced import duty of 10%.
The proposed Electric Vehicle Bill seeks to mandate EV adoption across government agencies and promote local assembly.
Nairametrics previously reported that the country’s automotive and energy experts remain sharply divided over whether the nation is ready for a large-scale transition to electric vehicles (EVs).
