By: Africa oil + gas report

Nigeria is advancing ambitious electric vehicle (EV) legislation through its national assembly, aiming to transform the country from an import-dependent car market into a regional EV manufacturing hub. The bill, part of a broader industrial strategy, seeks to leverage Nigeria's mineral resources, create jobs, and position the country as a competitor within the African Continental Free Trade Area (AfCFTA).

However, the initiative faces significant structural challenges that could undermine its goals. Nigeria's power crisis is the most critical constraint: with an installed capacity of roughly 14,800 MW, actual generation often falls below 32% of that figure. This vast generation gap means that widespread EV charging infrastructure would likely rely on diesel generators for years, negating environmental benefits and increasing costs. Additionally, poor road quality, limited grid reliability, and the country's overwhelming economic dependence on hydrocarbons present formidable barriers to a viable EV ecosystem.

The legislation also enters a competitive continental landscape where countries like South Africa, Morocco, and Egypt have more developed automotive industries and better infrastructure, attracting greater investment. For the bill to succeed, analysts argue it must be tightly integrated with parallel, transformational reforms in the power sector and road infrastructure, adopt phased implementation, and ensure transparent governance to avoid creating a regulated but non-viable market.