Govt approves tax waivers for 4,000 electric vehicles

The Nigerian government has granted tax waivers for nearly 4,000 electric vehicles imported into the country during the first half of 2026. This initiative is part of a new government plan to promote electric mobility, despite ongoing electricity shortages and insufficient charging infrastructure. The approvals mark the first batch processed under this new programme aimed at encouraging the adoption of cleaner vehicles through tax incentives and local vehicle assembly programs.

Nigeria's 2022 Energy Transition Plan targets electric vehicles to make up 60% of the country's vehicle fleet by 2050, but currently only accounts for less than one percent of the vehicle fleet. The government has taken various fiscal measures to make electric vehicles more competitive, including exempting them from value-added tax in 2024 and reducing import duties on them to zero this year, down from five percent.

However, the biggest hurdle facing Nigeria's electric vehicle ambitions is the lack of reliable electricity infrastructure. The national grid supplies only around 4,000 megawatts to Nigeria's population of over 200 million, leading to millions depending on petrol and diesel generators for supplemental electricity. Charging stations, dealerships, and battery-swapping operators often rely on generators during power outages.

Despite this, industry leaders argue that Nigeria should pursue both energy and transportation transitions simultaneously, as delaying electric mobility would leave the country behind other emerging markets.