The Nigerian Senate Wednesday passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, sponsored by Senator Orji Uzor Kalu (Abia North), which seeks to establish a comprehensive national framework for the transition to electric vehicles (EVs), promote local manufacturing, ensure environmental sustainability, and position Nigeria as a leader in clean energy transportation in Africa.
The bill, which was extensively debated on the Senate floor, outlines clear strategies for achieving Nigeria’s transition to electric mobility through local content development, foreign partnership regulations, nationwide charging infrastructure, and a coordinated inter-ministerial framework.
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Leading the debate, Senator Kalu said the proposed law is designed to transform Nigeria’s automobile and energy sectors by promoting innovation, local assembly, and environmental protection while creating thousands of jobs across the manufacturing value chain.
“This Bill will help Nigeria move from dependence on fossil fuels toward a cleaner and sustainable energy system. It will ensure that our local industries benefit directly from the emerging global electric vehicle market, create jobs, and reduce emissions in our cities,” Kalu stated.
The Lawmaker added that the Bill provides incentives such as tax holidays, import duty waivers, toll exemptions, subsidies, and road tax exemptions for electric vehicle users and investors, while also mandating the installation of charging points in all fuel stations across the country.
One of the key highlights of the Bill is its emphasis on local content compliance. It mandates that all foreign automakers seeking to operate in Nigeria must enter into partnerships with licensed Nigerian assemblers and establish assembly plants within three years of operation. Furthermore, such companies must attain at least 30 percent local sourcing of components by 2030.
Non-compliance attracts strict penalties, including the suspension of operations and a fine of ₦250 million per violation.
Additionally, any unlicensed dealer involved in the importation or sale of electric vehicles without government authorization would face a ₦500 million fine per shipment, alongside confiscation of goods.
The Bill also prohibits unauthorised research and development partnerships, ensuring that government grants or incentives for electric vehicle innovation are channeled through licensed Nigerian institutions.
“We are creating a system that protects Nigerian industries and ensures that technology transfer and innovation happen locally,” Senator Kalu explained.
The Bill establishes a comprehensive regulatory and institutional structure coordinated by the Federal Ministry of Industry, Trade, and Investment, supported by key agencies including:
Standards Organisation of Nigeria (SON): To develop safety and performance standards for electric vehicles, batteries, and charging equipment;
Federal Ministry of Transportation: To oversee licensing, public transportation integration, and EV infrastructure guidelines;
Federal Ministry of Power: To ensure renewable energy integration into charging systems and develop energy tariffs for EVs.
Federal Inland Revenue Service (FIRS): To administer tax incentives and publish annual reports on fiscal impacts; and
Federal Ministry of Environment: To oversee battery recycling, waste management, and compliance with Nigeria’s environmental obligations under the Paris Agreement.
Clause 3 of the Bill mandates that any Nigerian company seeking to assemble electric vehicles must demonstrate a minimum annual production capacity of 5,000 units, compliance with international safety standards, and proof of financial and technical capacity to sustain operations.
The Bill also provides that private investors setting up charging stations will be eligible for government grants and tax credits, while all fuel stations will be required to install charging points to ensure seamless adoption nationwide.
“Our goal is to make Nigeria the hub of electric vehicle manufacturing in Africa, create jobs for our youth, and support our transition toward renewable energy,” Kalu reiterated.
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