Nigeria is poised to establish what officials are promoting as Africa’s inaugural electric vehicle (EV) manufacturing plant. This follows a landmark agreement signed on January 30, 2025, with South Korea’s Asia Economic Development Committee (AEDC).
The deal is a major step towards localizing vehicle production and promoting the adoption of green technology across the nation. Senator John Enoh, Minister of State for Industry, signed on behalf of Nigeria, with AEDC Chairman Yoon Suk-hun representing South Korea.
A statement shared on the official X account of the National Automotive Design and Development Council (NADDC) announced that,
“On January 30, 2026, the Federal Government of Nigeria, through Senator John Enoh, Hon. Minister of State for Industry at the Federal Ministry of Industry, Trade and Investment (FMITI), signed a Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish an Electric Vehicle (EV) manufacturing plant and develop critical charging infrastructure nationwide. This landmark collaboration aligns strongly with Nigeria’s National Energy Transition Plan (ETP) and National Automotive Industry Development Plan (NAIDP).”
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According to the Business Insider Africa, the electric vehicle (EV) plant will be implemented in phases, beginning with EV assembly and later moving to full in-house production. Once fully operational, the facility is expected to manufacture 300,000 vehicles annually and create approximately 10,000 jobs, according to the NADDC.
This is not the country’s first venture into electric vehicles (EVs). Earlier EV efforts in Nigeria, such as the NASENI–Israeli/Japanese collaboration in 2022 or the partnership with a Chinese firm in December 2025, were confined to pilot projects or partial assembly and never reached full-scale production.
The new AEDC-backed plant is explicitly designed to be the continent’s first large-scale EV production facility, including assembly, manufacturing, and supporting infrastructure such as nationwide charging networks.
The Nigerian automotive sector faces major structural problems, such as a strong dependence on imported materials, high costs for assembly, and insufficient local manufacturing of parts. Annually, the country brings in between 400,000 and 720,000 vehicles, of which 74% to 90% are used cars.
Nigeria demonstrates a substantial appetite for second-hand vehicles, importing 700,000 units in 2023. By 2024, the worth of imported passenger cars reached $1.05 billion, confirming Nigeria’s status as a major global market for used vehicles.
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To stimulate the uptake of electric vehicles, the federal government launched a 20 billion naira ($12 million) consumer credit scheme in December 2024.
The initiative promotes the acquisition of domestically manufactured electric vehicles, including cars, motorcycles, and tricycles. This is achieved through partnerships with local producers like Innoson, Nord, CIG (GAC), PAN, Mikano, Jets, NEV (Electric), and DAG, aiming to broaden accessibility and stimulate the growth of a homegrown EV sector.
Though many welcome the move, critics point out that the success of electric vehicles depends on consistent, affordable electricity for private and commercial charging. In Nigeria, where many homes use generators, critics fear EV charging will merely shift emissions and costs from fuel tanks to generators, negating the environmental and economic benefits, according to Tekedia.
Electric vehicle adoption is on the rise across Africa, though still restricted. By mid-2025, the continent reportedly had over 30,000 EVs in use, which accounted for less than 1 percent of all vehicle sales, according to EV24.
Ethiopia possesses the largest number of electric vehicles (EVs) in Africa, with approximately 100,000. It is followed by Ghana with 17,000, Morocco with 10,000, South Africa with 6,000, Kenya with nearly 3,800, and Egypt with an estimated 3,500 to 4,000 EVs.
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