Nigeria Rides to Energy Transition in ‘Challenged’ Electric Vehicles
-Teddy Nwanunobi
Also known as EVs, for short, Electric Vehicles can pride themselves as vehicles for the future. If you think that the argument does not hold water, you may as well ask yourself why auto manufacturers are adding more EVs to their lineup. From the newcomers to the already established names in the automobile industry, every automaker is currently working on one EV or the other.
EVs are vehicles that are either partially or fully powered on electric power. They are vehicles that use one or more electric motors for driving. An electric vehicle may be powered through a collector system by electricity from off-vehicle sources, or may be self-contained with a battery, solar panels, fuel cells or an electric generator to convert fuel to electricity. They include, but are not limited to: road and rail vehicles, surface and underwater vessels, electric aircraft and electric spacecraft.
EVs as a necessity
The earth is heating up. In 2019, an independent agency of the U.S. federal government responsible for the civilian space programme, as well as aeronautics and space research, the National Aeronautics and Space Administration (NASA) reported that the planet’s average temperature was 0.98 degrees higher than pre-industrial levels. Global warming, in addition to causing the polar ice caps to melt and sea levels to rise, is causing other climate changes, like desertification and an increase in extreme weather events such as hurricanes, floods and fires: the distortion of the climate risks causing incalculable damage.
As a result of the above, the scientific community agreed that the above was due to anthropogenic emissions of greenhouse gases into the atmosphere. The main such gas, carbon dioxide, originates mostly (90 per cent) from the energy sector, in particular from coal-fired power stations.
This led to the signing of an international agreement in December 2015, at COP 21 that set the target of limiting global warming by the end of this century to below 2 degrees, compared with pre-industrial levels and preferably limiting it to 1.5 degrees. In order to achieve this goal, energy transition would be used as the main tool.
Energy transition (ET) is the shift from an energy mix based on fossil fuels to one that produces very limited, if not zero, carbon emissions, based on renewable energy sources. ET refers to the global energy sector’s shift from fossil-based systems of energy production and consumption – including oil, natural gas and coal – to renewable energy sources, like wind and solar, as well as lithium-ion batteries. It is a pathway toward transformation of the global energy sector from fossil-based to zero-carbon by the second half of this century.
At its heart is the need to reduce energy-related CO2 emissions to limit climate change. ET is a significant structural change in an energy system. Historically, these changes have been driven by the demand for and availability of different fuels. ETs can also result from depletion of energy sources, for example whale oil for illumination and wood for iron smelting in Europe.
Nigeria’s efforts
As countries shift from fossil fuels in a bid to reduce air pollution and contribute to global energy diversification and greenhouse gas reductions, crude oil is increasingly seen as a dirty, anachronistic fuel source for vehicles. With the world moving towards EVs, the Federal Government is also making investments into building indigenous EVs.
As part of the effort, a project team for the development of the Nigerian model of EVs was inaugurated in April, by the Nigerian Institute of Transport Technology (NITT), Zaria, Kaduna State, for the Federal Ministry of Transportation.
Fast forward to Tuesday, June 15, when the Vice President, Prof. Yemi Osinbajo, drove Nigeria’s first locally assembled electric vehicle (EV), Hyundai Kona, launched by Stallion Motors. Two weeks before then, popular transport and logistics company, GIG Logistics also deployed a fleet of EVs assembled by Jet Motor Company, and with it, charging stations.
Osinbajo said he was impressed with the innovation, and expressed hope of a bright future for Nigeria.
“(It was) a very good drive. Fantastic! It just shows what is possible. I am glad to see that this is an assembled-in-Nigeria electric car. You can literally charge it anywhere. I think it is a very fantastic innovation, fantastic product, and I can tell, because I drove it,” he said.
The challenges
It seems so good to one’s mind. But there are numerous challenges facing the commercial-scale deployment of EVs in Nigeria.
Electricity: The most glaring is the fact that power supply is epileptic, with almost 80 per cent of those with access to power getting less than 12 hours a day. Yet, about 47 per cent of Nigerians are without access to power. Commercial deployment of EVs can only happen when the ailing power sector has been overhauled. Additionally, most of the power generated in Nigeria comes from private generation, which typically comprises diesel and petrol. Burning these fuels for long hours, coupled with the attendant noise pollution to power EVs seems counterintuitive.
High cost of EV
A $90,000 cost for an EV at Jet Motors, a Nigerian vehicle assembler (over N45 million), by the parallel market rate in early August); is obviously a steep amount in Africa’s most populous country, which is also host to the highest number of people living in extreme poverty globally. The real challenge towards migration to EVs is that the proportion of Nigerians that can afford the vehicles is small. Yet, the proportion that can afford to purchase and charge one is even smaller.
No tokunbo
Due to the high purchase cost, only just a few Nigerians would be able to afford an EV. Nigeria is known for its regular importation of used cars, also known as tokunbo. A former Director General (DG) of the NADDC, Aminu Jalal, revealed in 2016 that about 150,000 used vehicles are imported into the country annually. Owing to this reason, there would be very little or no presence of the fairly used ones that would be sold in the market yet.
Charging points
There are inadequate charging points for these novelty battery-powered vehicles. This has prompted Jet Motors only three cars, named Jet Mover EV, a day, compared with eight non-electric JET Mover mini buses, according to Jet’s Chief Executive Officer, Chidi Ajaere. Jet has three charging points in Lagos State. The fourth one is expected in neighboring Ogun State this year.
Bad roads
The bad nature of Nigerian roads will also be another hindrance for the full adoption of EVs. The Director of Sales and Marketing, Rupani Sanjay, explained that the state of infrastructure, like bad roads, is a major concern of the company. According to him, the vehicles need to be charged for two hours to travel for 250 kilometres, which will last for two days. That means that, if they are stocked in the traffic due to bad roads or traffic jams, the purpose will be defeated.
“EVs are durable and designed for Nigerian roads, but the nation’s roads need to be fixed so that the vehicles can travel across the nation. For now, our brands only travel within Lagos due to this challenge,” he said.
Policy
Nigeria does not have an EV policy. While it has an automotive policy that aims to encourage local manufacturing, it does not have one that specifically touches on EVs, which have significant differences from internal combustion engines.
“How can you be setting a target when you don’t even have an electric vehicle policy? These are just mere wishful thinking by whoever said it,” a former Director of Policy and Planning at the NADCC, Luqman Mamudu, while speaking on targets the country was setting for electric vehicles, quipped.
Good news
Nigeria is a country that thrives on status symbols. It means that the lack of tokunbo EVs will not affect the upper class citizens. It will, however, spur them to patronise the dealers in the market. The products will certainly get into the hands of the upper class citizens and some middle class citizens, who would look forward to the prestige attached to owning EVs.
Other factors that may favour the future of EVs in Nigeria include stakeholder interest in pushing them into the market. Recently, Jelal mentioned that the NADDC was partnering with automakers to realise the dream of embracing EVs.
“No doubt electric vehicles are the future, maybe in the next five years,” he said.
If that holds any water, this is a prime moment for the government to commence designing a policy framework for EVs. It is admirable that the Senate has proposed an Electricity Act to be passed next year – this would help structure the operations of the power sector for more efficiency, and inevitably support an EV rollout.
Initiating credit and auto-financing schemes for the purchase of EVs will certainly grow the market, too, akin to what SolarTaxi is doing in Ghana. With EVs being cheaper, in terms of fueling and maintenance costs than fossil fuel automobiles, it is a prime area for Nigeria to capitalise on, and significantly reduce the cost of transportation – both commercial and private.
It is a good thing to know that there is a growing potential for EVs in Nigeria. It is more interesting to know that President Muhammadu Buhari is encouraging investments in renewables. His government is planning to set aside 10 per cent of the N2.3 trillion ($5.6 billion) it is spending to spur an economic revival, towards providing solar power for households.
