Abuja: Nigeria’s electric vehicle (EV) market could generate cumulative savings of nearly N10 trillion by 2040, Rocky Mountain Institute (RMI) says. The analysis was presented during an RMI webinar on electric mobility in Nigeria and Kenya, focusing on two- and three-wheelers.
According to News Agency of Nigeria, RMI is an independent, entrepreneurial, non-profit think-do tank focused on accelerating the transition to a clean energy future. RMI indicated that Nigeria’s conditions are favorable for electric vehicle adoption, particularly for two-wheelers where grid charging is feasible. A high-adoption scenario could lead to nearly 500 megatons of cumulative carbon dioxide savings by 2060.
The institute noted that the transition to electric vehicles could support cleaner transport, local manufacturing, and job creation while reducing mobility costs. However, it emphasized the need for stronger demand incentives, supply-side regulations, and support for domestic EV manufacturing to accelerate adoption in Nigeria.
RMI suggested that implementing fuel-efficiency standards or a zero-emission vehicle availability standard could rapidly expand Nigeria’s electric vehicle market. The institute also advocated for carefully designed incentives to encourage domestic manufacturing, create jobs, and strengthen Nigeria’s emerging electric mobility industry.
Affordable financing is crucial for enabling consumers and businesses to acquire EVs and benefit from their lower operating costs, RMI stated. Charging infrastructure must also be rapidly deployed, considering Nigeria’s electricity realities and grid readiness. RMI highlighted that EVs should not be seen as an additional burden on the electricity system but rather managed to support grid operations while creating opportunities for electricity utilities.
The institute’s recent EV policy roadmap for Nigeria examined necessary measures to develop a stronger policy framework for the sector. At the webinar, Mr. Olaoluwa Faniyi, Chief Technology Officer and co-founder of SunFi, highlighted that Nigeria could boost electric mobility through decentralized solar charging and battery-swapping infrastructure.
Faniyi pointed out that EV adoption remains extremely low, with electric vehicles accounting for less than one percent of vehicles on Nigerian roads. He attributed this slow adoption partly to electricity challenges, noting that the national grid generates about 4,000 megawatts for over 200 million people.
Nigeria also has fewer than 50 public EV charging stations, limiting access to reliable charging infrastructure, Faniyi added. He suggested that decentralized solar infrastructure could address electricity challenges while supporting the expansion of electric mobility. Local solar installations could eventually provide the backbone for off-grid EV charging and battery-swapping networks, expanding access to electric mobility without additional pressure on Nigeria’s constrained grid.
Faniyi emphasized that commercial two- and three-wheelers should be seen as opportunities for Nigeria’s energy, transport, and climate transition. Electric mobility could enable drivers to reduce operating costs while creating sustainable income-generating opportunities.
He also called for policies supporting the wider clean mobility value chain, proposing zero tariffs on standalone lithium batteries, solar charging equipment, and other key components required for electric mobility. Reducing duties could attract infrastructure investment and strengthen charging systems needed for wider EV adoption.
Mr. Dustin Kahler, EV Industry Advisor at Upeo.Earth, noted that African EV users are predominantly commercial operators, making operating costs crucial to electric mobility economics. He highlighted that commercial EV operators in East Africa achieve significant savings in total cost of service.
The Market Intelligent and Research Manager at Shell Foundation, Mr. Habib Nuhu, called for greater mobilization of domestic capital to finance Nigeria’s EV transition. Nuhu stressed that local banks, pension funds, and other financial institutions need to recognize electric mobility as a commercially viable industry.
Stronger domestic financing could help Nigerian businesses access capital better suited to local market conditions, Nuhu stated. Sector-wide risk-sharing schemes could spread lending risks and encourage financial institutions to finance EV assets, making electric motorcycles more affordable for commercial riders.
The panel identified standardised charging and battery-swapping infrastructure as important for Africa’s electric mobility growth. Stronger collaboration across African markets could help countries share lessons on policy, financing, infrastructure, and local manufacturing.
For Nigeria, the speakers emphasized that stronger domestic investment, cleaner energy, and reliable charging infrastructure could unlock the economic and environmental benefits of electric mobility.