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By Lizzy Chirkpi
The Nigerian Senate on Wednesday passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, a landmark proposal sponsored by Senator Orji Uzor Kalu, representing Abia North. The Bill seeks to accelerate Nigeria’s shift from fossil fuel dependency to clean, sustainable transportation while promoting local manufacturing and positioning the country as Africa’s hub for electric vehicle (EV) production.
Leading the debate, Senator Kalu said the proposed legislation would revolutionize Nigeria’s automobile and energy industries by fostering innovation, job creation, and environmental protection.
“This Bill will help Nigeria move from dependence on fossil fuels toward a cleaner and sustainable energy system. It will ensure that our local industries benefit directly from the emerging global electric vehicle market, create jobs, and reduce emissions in our cities,” Kalu stated.
The Bill introduces several incentives, including tax holidays, import duty waivers, toll exemptions, and subsidies, to encourage investors and consumers to embrace electric vehicles. It also mandates the installation of charging points in all fuel stations across the country to support seamless adoption.
A major highlight of the proposed law is its emphasis on local content compliance. It requires foreign automakers seeking to operate in Nigeria to partner with licensed local assemblers and establish assembly plants within three years of commencing operations. By 2030, these companies must source at least 30 percent of components locally.
Non-compliance will attract stiff penalties, including the suspension of operations and fines of up to ₦250 million per violation. Similarly, unauthorized importers or dealers found selling electric vehicles without government authorization will face fines of ₦500 million per shipment and confiscation of goods.
“We are creating a system that protects Nigerian industries and ensures that technology transfer and innovation happen locally,” Kalu explained.
The Bill also prohibits unauthorized research and development partnerships, ensuring that government grants and incentives for electric vehicle innovation are channelled through accredited Nigerian institutions.
In its implementation structure, the Bill establishes a coordinated regulatory framework led by the Federal Ministry of Industry, Trade, and Investment, supported by relevant ministries and agencies such as the Standards Organisation of Nigeria (SON), the Federal Ministry of Transportation, the Federal Ministry of Power, the Federal Inland Revenue Service (FIRS), and the Federal Ministry of Environment. These agencies will be responsible for developing safety and performance standards, integrating renewable energy into charging systems, managing tax incentives, and ensuring environmental compliance in line with Nigeria’s commitments under the Paris Agreement.
Lawmakers across party lines lauded Senator Kalu for his foresight and initiative. Senator Adamu Aliero of Kebbi Central noted that the transition to electric mobility was crucial for reducing Nigeria’s carbon footprint, particularly in industrialized and traffic-congested cities such as Lagos and Kano.
“The world is moving forward, and cities like Lagos and Kano are already suffering from high carbon emissions. Electric vehicles will drastically cut down pollution, improve public health, and create a new industrial ecosystem for Nigeria. Instead of exporting lithium, we should process and utilize it here at home to create jobs and diversify our economy,” Aliero said.
Senator Osita Ngwu, representing Enugu West, emphasized that embracing clean mobility would help Nigeria mitigate the long-term dangers of climate change. “Climate change is already affecting our communities and agricultural productivity. Embracing clean mobility is part of our national responsibility to future generations,” he stated.
Also contributing, Senator Titus Zam (APC, Benue) observed that Nigeria must not lag behind as many nations had already adopted electric vehicle policies. “From Europe to Asia and even several African countries, the electric vehicle revolution has already taken shape. Nigeria must not be left behind if we hope to remain competitive and relevant,” Zam said.
Beyond environmental considerations, the Bill also aims to unlock economic opportunities by expanding local production capacity and deepening Nigeria’s participation in the global electric vehicle value chain.
Clause 3 of the Bill stipulates that any Nigerian company seeking to assemble electric vehicles must have a minimum annual production capacity of 5,000 units, meet international safety standards, and demonstrate financial and technical capacity to sustain operations. Private investors establishing charging stations will be eligible for government grants and tax credits, while all fuel stations nationwide are to install charging infrastructure to ensure accessibility.
“Our goal is to make Nigeria the hub of electric vehicle manufacturing in Africa, create jobs for our youth, and support our transition toward renewable energy,” Kalu reiterated.
After extensive deliberations, the Bill was passed for second reading through a voice vote presided over by Senate President Godswill Akpabio.
Akpabio commended Senator Kalu for sponsoring a visionary and forward-looking legislative initiative that aligns with President Bola Tinubu’s economic diversification and clean energy agenda.
“This Bill represents an important step toward sustainable industrial growth and environmental responsibility. Nigeria must prepare for the future of transportation and energy,” Akpabio said.
The Bill has been referred to the Senate Committee on Industry for further legislative consideration and is expected to report back to the chamber within four weeks.