CHIKA IZUORA, writes on thriving Electric Vehicle and Compressed Natural Gas (CNG) initiatives in Nigeria which is promoting efficient transportation system
No doubt Nigeria is presently promoting the adoption of electric vehicles (EVs) through various government initiatives.
This aims at significantly Shifting towards electric mobility by 2060. These initiatives include import duty exemptions on EVs, local assembly requirements, and investments in charging infrastructure. The country also plans to develop a comprehensive national EV policy and explore innovative funding mechanisms for the sector.
Nigeria is also developing a comprehensive national EV policy with clear goals, targets, and timelines for EV adoption and infrastructure development and the government is providing incentives like import duty exemptions on EVs, aiming to make them more affordable for consumers.
Nigeria aims to have 30 per cent of all vehicles sold in the country by 2033 be locally manufactured EVs, fostering industrial development and job creation.
The NEV Electric plans to install 300 charging stations across Abuja and Lagos by August 2025, with the Energy Commission of Nigeria (ECN) also launching a solar-powered charging station in Abuja.
Nigeria’s Energy Transition Plan sets ambitious goals for EV adoption, with the aim of 100 per cent electric vehicle adoption by 2060.
Efforts are also underway to integrate renewable energy sources with EV charging infrastructure, promoting sustainable energy practices.
However a key challenge is the development of adequate charging infrastructure to support widespread EV adoption.
While incentives are reducing costs, the initial purchase price of EVs can still be a barrier for some consumers.
Raising public awareness about the benefits of EVs and the availability of charging infrastructure is crucial for driving adoption, whereas Nigeria needs to develop a skilled workforce for EV maintenance and servicing.
Building a robust local EV manufacturing industry will require significant investment and policy support.
EV Forecast Of 6.8% Annually Growth A Challenge
Overall, Nigeria is making significant strides in its efforts to promote electric vehicle adoption, recognising the potential for economic, environmental, and social benefits
Nigeria’s Electric Vehicle (EV) market is projected to grow at a rate of 6.8 per cent annually through to 2031.
According to Climate Scorecard, Nigeria has an estimated 15,000 to 20,000 electric vehicles on its roads as of 2025. While this is still a small fraction of the country’s total vehicle population, it is a notable jump from five years ago when EVs were virtually absent.
Part of what’s fuelling this momentum is a series of bold moves by local and regional players.
Nigeria’s local EV assembling and production is currently growing, evidenced by the recent unveiling of a high-performance, all-electric SUV built on home soil.
The launch signals a growing confidence in domestic capacity and a fresh wave of momentum in the country’s electric mobility journey.
The vehicle, known as the M-Hero 917, is a military-inspired electric SUV with a four-motor all-wheel drive system and near-instant torque delivery.
The M-Hero, assembled in Nigeria through a partnership between Chinese automaker Dongfeng and SAGLEV Electromobility, blends luxury performance with local engineering.
“This is more than just a car launch,” according to Michaela Abor Adebola, an energy mobility analyst based in Abuja.
“It’s a marker of intent. It shows that global EV manufacturers are starting to see Nigeria not just as a market to sell into, but a country to build with,”he added in a call.
The shift to local EV assembly has in recent years become more evident across the continent. In countries like Kenya, Rwanda, and South Africa, local companies are assembling electric buses, motorcycles, and utility vehicles tailored for domestic needs.
Nigeria is joining the pack and from high-end SUVs like the M-Hero to tuk-tuks, two-wheelers, and delivery bikes, the range of locally assembled EVs in the country is steadily growing.
The NEV Electric, for instance, a local firm, plans to produce 2,000 high-capacity EVs and up to 10,000 micro-EVs by the end of the year. It’s the manufacturing arm of Possible EVs, a 2021 company, that aims to create more awareness about EVs in Nigeria and make them more affordable.
Meanwhile, Spiro, one of Africa’s largest electric mobility companies, has deployed over 33,000 electric motorcycles across the continent.
Its battery-swapping model, now with around 9 million swaps across seven African countries is gaining popularity among urban riders and delivery services.
In January 2025, Spiro announced a partnership with Afrobeats superstar Davido to promote clean, stylish mobility and sustainable living. The collaboration is part of a broader push to inspire a cultural shift toward electric transport, blending technology, music, and climate action.
Spiro also maintains a technical innovation centre in Lagos, supporting local expertise as it scales its footprint across the continent.
In Ogun State, there is also an EV transformation underway. The state is emerging as a manufacturing and logistics hub for Nigeria’s e-mobility sector, attracting a mix of local startups and global firms.
One key player is Phoenix Renewables, which operates a solar-powered facility assembling electric three-wheelers tailored for last-mile delivery in urban and peri-urban areas.
The company’s focus is on clean transport, and energy independence leveraging off-grid solar systems to reduce reliance on Nigeria’s unstable national grid.
The JET Motor Company, an indigenous EV manufacturer, has also established operations in the state, with a pipeline of electric vans and minibuses designed for corporate fleets, ride-hailing, and inter-city travel.
The company is developing a range of vehicles engineered to perform on Nigeria’s challenging roads, with battery performance and chassis durability adapted to local conditions.
In 2024, Ogun State signed a public-private agreement to expand EV adoption through the establishment of dedicated EV zones, including planned charging infrastructure and training centres.
According to Techpoint Africa, the state is working with firms like Spiro to pilot electric motorcycles and battery swap hubs in select municipalities, integrating e-mobility into local transport systems and pushing for cleaner urban transit.
Different multinationals are also rapidly making inroads in the country.
China, in particular, is playing a visible role. Automakers like BYD, JAC, and Dongfeng are already present in Nigeria through assembly partnerships or dealership networks.
The M-Hero launch is one of several signs that Chinese manufacturers are deepening their stakes in Nigeria’s auto future offering financing, after-sales support, and adapting models to local road and fuel conditions.
According to a February Bloomberg report, the rise of Chinese EV brands in Nigeria has been partly driven by high fuel prices and consumer demand for cheaper alternatives to petrol cars.
Lagos now hosts more than a dozen EV dealerships selling Chinese-made vehicles, many offering flexible payment plans and growing after-sales support networks.
The shift is also infrastructural. In Lagos, EV companies are setting up charging stations and battery swap hubs in key commercial zones.
In April 2025, Foltï Technologies launched eDryv in Lagos, Nigeria’s first ride-hailing platform powered almost entirely by solar energy. The service operates a fleet of Dayun-branded electric MPVs and SUVs with driving ranges of up to 450 km, supported by solar charging hubs and a 460 kWh energy storage facility in Victoria Island.
Unlike traditional platforms, eDryv offers rides at under ₦320 (US$0.21) per km and rewards eco-conscious trips through a “Green Coins” loyalty system that discounts future fares.
Vehicles aren’t sold or leased, instead, drivers are employed on full-salary contracts, ensuring quality control and lowering the barriers to entry.
Foltï plans to expand the solar charging network and is targeting the establishment of an EV assembly plant in Abeokuta, Ogun State, by 2026–27 to strengthen local production capacity and value chains.
Policy support is also evolving. While Nigeria’s national electric mobility policy has yet to be finalised, the National Automotive Design and Development Council (NADDC) has backed local assembly efforts.
The Council has supported pilot projects and training programs and is working on a framework for EV charging infrastructure standards. Lagos State has also shown early interest in integrating electric buses into its public transport system.
According to sector analysts, the bigger picture is that Nigeria is beginning to joining African frontrunners especially those in the Eastern African region.
“This is how you build an industry,” according to Ayodele Alabi. “Start with local assembly, create partnerships that stick, and build trust with consumers. We’re finally seeing all of that come together.”
“While countries like Kenya and Rwanda have made headlines for electric motorbike adoption, Nigeria’s size, urban density, and manufacturing base give it unique advantages. Foreign automakers seem to be betting on that.”
Still, challenges remain. Electricity supply remains unreliable in most parts of the country, and the cost of EVs, especially high-end models, remains out of reach for many.
“Without strong government incentives or a clear nationwide policy, the pace of adoption could slow. Yet even with these limitations, the tone of the industry is changing.”
Synchronizing CNG Into Competitive Fuel Network
Meanwhile, Nigeria’s Compressed Natural Gas (CNG) sector is experiencing significant growth, driven by government initiatives and the potential for cost savings compared to petrol.
The country’s CNG conversion capacity has seen a remarkable increase, and the number of converted vehicles is also on the rise.
Nigeria’s CNG conversion capacity has reportedly increased by 2,500 per cent.
An estimated 100,000 vehicles, primarily commercial units, have been converted to CNG, with the number continuing to grow.
The Presidential Compressed Natural Gas Initiative (PCNGI) has played a key role by stimulating new conversion centers and supporting the development of CNG infrastructure in major cities.
Meanwhile, Stakeholders across government and industry have assessed the implementation of Nigeria’s Compressed Natural Gas (CNG) policy, raising key questions around funding, safety, accessibility, and sustainability.
At an investigative hearing held in Abuja by the House of Representatives Ad-Hoc Committee on the Implementation of the CNG Policy, the Project Director of the Presidential CNG Initiative (PCNGi), Mr Michael Oluwagbemi, revealed that Nigeria currently has 300 CNG conversion centres—up from just seven at inception.
According to him, the initiative has now expanded into 24 states from an initial five, with partnerships in place to convert vehicles at no cost to stakeholders. He also noted that the initiative maintains zero tolerance for corruption, disclosing that two staff members had been dismissed for misconduct.
He appealed to the committee for additional funding to scale up vehicle conversions and said states not yet covered would be reached in the next phase. “We are also training more youths for the upcoming phase two of the programme,” he stated.
Also speaking, the Minister of State for Petroleum (Gas), Mr Ekperikpe Ekpo, represented by the ministry’s Permanent Secretary, Mr Vitalis Ibe, said more CNG centres would be established nationwide.
“This initiative is pocket-friendly and will address climate change, reduce emissions, and create jobs,” he said.
Speaker of the House of Representatives, Mr Tajudeen Abbas, represented by Mr Sada Soli, described the CNG policy as a central pillar of Nigeria’s energy transition strategy.
“It represents a strategic shift towards cleaner, safer, and more economically viable alternatives to conventional fossil fuels, especially in our transportation sector. With Nigeria’s abundant reserves of natural gas, the promotion of CNG as a motor fuel is not only logical but also vital to achieving our broader goals of energy security, environmental sustainability, and economic diversification,” he said.
He acknowledged that while the CNG initiative was introduced as a palliative following fuel subsidy removal, concerns have emerged regarding the pace of implementation and readiness of supporting infrastructure.
“Our concern is not just about the intentions of the policy, but the mechanisms of its execution — are the funds appropriated being judiciously utilised? Are Nigerians feeling the impact? Are safety and environmental standards being upheld? Are stakeholders adequately carried along?”Mr Abbas asked.
Chairman of the Ad-Hoc Committee, Mr Jaha Ahmed Usman, said the hearing was convened under Sections 62, 88, and 89 of the 1999 Constitution (as amended), to examine how the policy is being implemented.
He added that the session followed House Resolution HR.123/05/2025 on the urgent call to establish more CNG conversion centres across Nigeria.
“Following the removal of fuel subsidy in May 2023, the Federal Government under the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu GCFR, launched the Presidential CNG Initiative in August 2023 to mitigate economic shocks, reduce fuel costs, and promote clean energy alternatives,” he said.
Mr Usman listed the committee’s objectives as evaluating the safety, equity, global compliance, and legal framework of the policy. He noted that the ₦100 billion allocated from the ₦500 billion palliative fund must be transparently accounted for.
He further queried: “What is the scale and credibility of the ₦760 billion private investment claim? Are the conversion centres and refuelling stations adequately spread across the federation? What frameworks ensure safety and protect against substandard conversions?”
In his remarks, Executive Vice President for Gas at the Nigerian National Petroleum Company Limited (NNPCL), Mr Lekan Ogunleye, said previous efforts to introduce CNG failed, but the current administration has made significant progress.
“We commend the President Bola Ahmed Tinubu administration for pushing this policy forward. NNPCL has appointed a focal person to liaise with private investors and ensure backbone infrastructure is available,” he stated, adding that Nigerians would benefit from 50 percent discounts on conversions.
Representatives from the National Union of Road Transport Workers (NURTW), the Road Transport Employers Association of Nigeria (RTEAN), and other stakeholders praised the initiative but urged the government to ensure equitable access across all states.
They also affirmed the safety and viability of CNG as a transport fuel
