Ismaila Umaru Lere
Three years after the launch of Nigeria’s maiden electric car, the sales of product is yet to hit frenzy heights with less than 300 units reportedly being sold. Though industry watchers have recently hinted at a gradual improvement in the sales figures, Nigerian consumers remain resolute in their romance with fossil fuel consumption. This is perhaps as a result of low access to electricity to charge the vehicles.
The hours of electricity needed to keep the vehicle running coupled with the fact that there are limited or non-existent charging points is seriously undermining the adoption of electric vehicles (EVs) in Nigeria.
Recent study, however, showed a continued rise in the uptake of electric cars and hybrids in the country, with projected growth from 9.6% this year to 13.10% in 2024. The sales is projected to reach 17.78% in 2025 and upsurge to 23.82% in 2026.
Figures aside, one can easily adduce that Nigeria’s electric vehicle market is growing, but not fast enough. The EV revolution and global penetration drive is an essential part of a viable pathway to reaching global net-zero emission target. The EV industry is currently the focus of a massive global shift, with tremendous backing from both the public and private sectors. Billions of dollars are being invested across the globe to accelerate the EV revolution.
Tesla S model
In recent years, increased concerns over the environmental impact of fossil fuel cars, higher petrol prices, and breakthroughs in renewable technology have brought about renewed interest in electric cars, which are perceived to be more environmentally friendly and cheaper to maintain and run, despite high initial costs.
Globally, the production of EVs and hybrids has gained momentum and getting more deeply rooted than ever.
They are operational in the economies of Europe, Asia and America. Electric vehicles are flourishing in countries such as United States, Canada, Germany, France, Britain, Japan, South Korea, China, India, Netherlands, Spain, and Belgium.
Here in Nigeria, the government needs to shrug off the lethargy and enact into law, a bill seeking to create enabling environment for the sector. Currently, the sector is bedevilled by lack of attractive auto finance schemes due to higher interest rates, and other extant challenges.
At the moment, many view EVs as elitist and a social status symbol vibe. The affordability of these electric vehicles is steep for most Nigerians as two of the most commonly used electric cars, namely, Tesla and Hyundai are beyond the reach of most car owners. A Tesla S model price ranges from N32 million to N62 million, while a Tesla X model price ranges from N36 million to N60 million. The price of Tesla Y model price roves between N20 million and N30 million.
Whereas a Hyundai Kona electric vehicle’s price ranges from N24 million to N30 million.
Kona Electric SUV
Though, the federal government had signed a Memorandum of Understanding (MoU) with Israeli and Japanese companies to commence assembling and manufacturing of electric vehicles in the country, it should follow it up with establishing a policy and implementation framework so that the charging infrastructure will be part of the services by fuel station dispensers and provide guidelines for establishment of charging parks by interested private investors. In addition, the government should explore a strategic policy of tax rebate for users of EVs in the country, which will attract people to its usage.
Incentives for users of electric vehicles will, certainly, aid EV penetration in the country. Meanwhile, some states like Sokoto, the first in Nigeria to launch a solar-powered electric car charging station, and Lagos, have since joined EV revolution. Three charging stations have been built in University of Lagos, Usman Dan Fodio University and the University of Nigeria, Nsukka. In addition, the National Automotive Design and Development Council (NADDC) had in collaboration with the Stallion Group, European Union and other stakeholders rolled out 100 solar-powered electric vehicle charging stations across the country.
But these charging stations are few and far in between compared to the demand of EVs in the country. The ubiquitous distribution of charging points in petrol stations is imperative such that owners will not be stranded if the batteries go down.
Beyond EV assemblage and charging points, other elements such as service support for the technology in terms of local skills and spare parts should be taken care of exponentially.
Reaching net zero emissions by mid-century will require an electric car fleet of over 300 million vehicles by 2030, and 60% of new car sales will have to be electric models. Already, global electric vehicle sales are on a sharp upward trend, with sales nearly doubling between 2020 and 2021, according to figures from the International Energy Agency.
With time, Nigerians will wholeheartedly accept EVs especially, if the prices are not as monstrously high as they are today. This is more so in view of the escalating price of fossil fuel, especially with the impending withdrawal of fuel subsidy and petrol price hike.
The EV revolution is a global trend and Nigeria cannot afford to lag behind. But it is also a warning indicator that fossil fuel will not be the main source of energy supply for the transport industry in the not-too-distant future.