Govt approves tax waivers for 4,000 electric vehicles

The Nigerian government has approved tax waivers for nearly 4,000 electric vehicles (EVs) imported into the country during the first half of 2026. This initiative is part of a new government program aimed at encouraging the adoption of cleaner vehicles through tax incentives and local vehicle assembly programs. The approval comes as authorities push to accelerate the nascent electric vehicle (EV) adoption despite chronic electricity shortages.

Nigeria's 2022 Energy Transition Plan targets electric vehicles accounting for 60% of the country's vehicle fleet by 2050. However, EVs currently account for less than one percent of the country's vehicle fleet, translating to only tens of thousands of vehicles. Nigeria has introduced a series of fiscal measures to make EVs more competitive, including exempting them from value-added tax in 2024 and reducing import duties to zero this year.

The biggest challenge facing Nigeria's electric vehicle ambitions is the unreliable electricity grid, which leaves millions of households and businesses relying on petrol and diesel generators. Charging stations, dealerships, and battery-swapping operators increasingly use generators to keep their businesses running during grid failures.

Industry players argue that waiting for Nigeria's electricity system to become reliable before expanding EV adoption would leave the country behind other emerging markets.