On January 30, 2026, the Nigerian Federal Government signed a landmark Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish what officials are calling Africa’s first full-scale electric vehicle (EV) manufacturing plant.
The Strategic Shift
“Nigeria is ready to compete in future-facing industries,” said Senator John Enoh, Minister of State for Industry. “This is a statement of intent.”
The project will follow a two-phase industrial plan:
- Assembly: Initial operations will focus on assembling vehicles from imported kits to build technical familiarity.
- Full Production: The long-term goal is “in-house” manufacturing, localizing parts like batteries and chassis to reduce the $10 billion annually spent on fuel and vehicle imports.
Why It Matters
For decades, Nigeria has been the final destination for the world’s “end-of-life” internal combustion engines. This deal signals a pivot from being a passive consumer of used imports to a producer of high-tech exports.
- The Numbers: At full capacity, the facility is projected to churn out 300,000 vehicles annually.
- The Jobs: Roughly 10,000 direct positions are expected to be created, with thousands more in the secondary supply chain.
- The Infrastructure: The deal isn’t just about the factory; it includes the rollout of a nationwide charging network, a critical hurdle for EV adoption in a country with a notoriously strained power grid.
The “Used Car” Challenge
Nigeria is currently one of the world’s largest markets for pre-owned vehicles. In 2024 alone, passenger car imports were valued at $1.05 billion, with up to 90% of those being used.
To combat this, the government is coupling this industrial push with consumer incentives:
- Credit Kickstart: A 20 billion naira ($12 million) consumer credit program launched in late 2024 helps Nigerians finance locally assembled EVs and tricycles.
- Regulatory Reform: New policies are being drafted to tighten standards on used imports, effectively making “clunkers” more expensive and new EVs more attractive.
The Global Context
While Ethiopia and Morocco have made strides in EV assembly, Nigeria’s goal is “large-scale manufacturing.”
By mid-2025, Africa had fewer than 30,000 EVs in use—less than 1% of total sales. Nigeria’s 300,000-unit target would effectively attempt to leapfrog the rest of the continent’s combined capacity.
Source: Business Insider Africa
