- The Nigerian government introduces National Automotive Industry Development Plan (NADIP) to boost local vehicle production and achieve higher local content and electric vehicle production.
- The plan aims to create one million jobs, encourage government and businesses to purchase locally produced vehicles, and promote research, development, and technology transfer.
- Challenges such as inadequate infrastructure, including charging stations and reliable power supply, hinder the growth of the electric vehicle market in Nigeria.
The Nigerian government announced last week the creation of a new National Automotive Industry Development Plan (NADIP) for the years 2023-2033. The nation’s trade minister, Otunba Adeniyi Adebayo, made this declaration following the Federal Executive Council meeting on May 10, 2023.
According to Adebayo, the policy is intended to enable an exponential increase in local vehicle production, achieve 40% local content and 30% locally produced electric vehicles, create one million jobs, require the government and businesses with government contracts to purchase locally produced vehicles, and advance research, development, and technology transfer.
According to Jelani Aliyu, the director general of the National Automotive Design and Development Council (NADDC), the federal executive council (FEC) has approved the implementation of the National Automotive Industry Development Plan, which will support local production, infrastructure development, standardization, and market development, in December 2021.
To ensure that 50% of automobiles on Nigerian roads are locally built or assembled electric vehicles by 2031.
Meanwhile, Nairametrics reported in August 2022 that the National Agency for Science and Engineering Infrastructure (NASENI) had signed contracts with the Israeli company Peramare Enterprise and the Japanese company SIXAI for the production and assembly of electric cars in Nigeria.
The market for electric vehicles in Nigeria is growing, but not quickly enough. If Nigeria is to participate actively in the global electric car market, the Nigerian government must collaborate with industry stakeholders to finance infrastructure projects such as charging stations, reliable power supply at charging stations, and maintenance facilities.
Whatever the case, a lack of electrical availability has hampered corporate operations, and the situation is unlikely to improve. Businesses, particularly manufacturers, are reducing operating expenses and product quality to keep up with rising electricity rates due to their reliance on diesel and gasoline generators.
Furthermore, a lack of adequate electricity suggests that fully utilizing electric vehicles in Nigeria may be difficult. EVs in Nigeria remain a pipe dream in the absence of reliable charging stations.
According to Mordor Intelligence data, the African market for electric vehicles is expected to be worth $11.94 billion in 2021 and $21.39 billion by 2027. However, the industry is constrained by factors such as a lack of charging infrastructure, which may prevent the market from expanding.
