Nigeria wants to boost production of electric vehicles under new plan
Written by: Yunus Kemp
Nigeria wants to locally produce at least a third of all electric vehicles in its market in the next decade.
The West African nation recently ratified its National Automotive Industry Development Plan (NAIDP) in a bid to boost its technology and manufacturing capacity in the automotive industry.
The plan was recently presented to the government’s Federal Executive Council by the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo.
The National Automotive Design and Development Council (NADDC), which had put the plan together, said it is “aimed at enabling the exponential increase in the local production numbers of vehicles.”
“The NADDC has developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry.
“The new NAIDP would strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders,” said the Council.
The Plan envisages “reaching 40% local content, attaining 30% locally produced Electric Vehicles, generating a million jobs, enforcing patronage of locally produced vehicles by government and companies working on government contracts, and also boosting R&D and technology transfer.”
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Chinese bus maker Yutong on Tuesday launched the first electric mass transit buses targeting public transport in Lagos, Nigeria's economic hub, as the country prepares for the gradual shift from internal combustion engine-powered vehicles to sustainable electric vehicles (#EVs). pic.twitter.com/lhJkhykh8c— China Focus (@China__Focus) May 24, 2023
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Africa’s move to the electric vehicle market ‘stunning’ and ‘significant’
The Plan is set to run for 10 years.
According to Mordor Intelligence, Africa’s electric vehicle market was valued at $11.94 billion in 2021. The market is projected to reach $21.39 billion by 2027.
“Africa is one of the top countries witnessing substantial vehicle transitions. The transition from traditional autos to electric battery-powered vehicles has been both stunning and significant,” said Mordor Intelligence.
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“This rapid shift is the result of greater knowledge of environmental issues and the need to meet African economies’ greener objectives.”
Recently, Lagos received its first set of electric buses as Africa’s most populous city said it is trying to cut down carbon emissions through a greener public transport system.
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The automobile sector in Nigeria has attracted over $1b investment and capacity to produce 400,000 units of vehicles— David Offor (@DavidsOffor) April 6, 2023
3 car charging stations have been established pending when Electric vehicles will be rampant in Nigeria!!
Kudos to our Bubu#PMBScoreCard pic.twitter.com/XVhgaUbxrC