Electric Vehicle Transition and Green Mobility Bill

What Is This Policy?

The Electric Vehicle Transition and Green Mobility Bill, 2025 is a comprehensive legislative proposal to establish a national framework for Nigeria’s phased transition from fossil-fuel-powered vehicles to electric vehicles (EVs) and other green mobility alternatives. Sponsored by Senator Orji Uzor Kalu (Abia North) and passed for Second Reading in the Nigerian Senate on 5 November 2025, the Bill seeks to transform Nigeria’s automotive and energy sectors, promote local EV manufacturing, build a nationwide charging infrastructure, attract green investment, and align Nigeria’s transport sector with its climate commitments under the Paris Agreement and the Climate Change Act 2021. The Bill was subsequently referred to the Senate Committee on Industry for detailed legislative review.

Who Does It Target?

Domestic vehicle owners, commuters, and fleet operators across Nigeria’s public and private transport sectors, including commercial ride-hailing platforms, logistics companies, and government vehicle fleets Local EV manufacturers, assemblers, and importers including existing Nigerian automotive companies such as Innoson Vehicle Manufacturing (IVM), NEV Electric, and emerging EV startups Foreign automakers and multinational EV brands seeking to import, sell, or distribute electric vehicles in Nigeria, who are required to enter local partnerships and establish assembly plants Investors in EV charging infrastructure, battery production, and green mobility technology, who are eligible for government grants, tax credits, and other incentives under the Bill Federal agencies including the Standards Organisation of Nigeria (SON), Federal Ministry of Transportation, Federal Ministry of Power, Federal Inland Revenue Service (FIRS), and Federal Ministry of Environment, each assigned specific implementation roles Academic and research institutions engaged in EV technology, battery innovation, and green mobility research that seek government-backed R&D grants channelled through licensed Nigerian institutions

What Does It Aim to Achieve?

Establish a National Electric Vehicle Development and Promotion Council (NEVDPC) to coordinate, regulate, and drive EV policy implementation across all relevant sectors nationwide Promote the gradual phasing-out of petrol and diesel-powered vehicles and their replacement with electric and hybrid alternatives, starting with government fleets Position Nigeria as Africa’s leading EV manufacturing hub by mandating minimum annual production volumes, local content requirements, and international safety standards compliance Build a nationwide EV charging infrastructure by requiring every fuel outlet to install at least one EV charging station, and offering grants and tax credits to private charging station investors Reduce Nigeria’s annual fuel import bill estimated at US$10 billion and dependence on imported petroleum products by shifting transport energy demand to domestically generated electricity Advance Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement, which target a 47% reduction in greenhouse gas emissions by 2030, and support the national goal of 100% EV transition by 2060 under the Energy Transition Plan Create thousands of new jobs across the EV manufacturing, assembly, battery supply chain, charging infrastructure, and green technology services value chain

Key Features

NEVDPC: Establishes the National Electric Vehicle Development and Promotion Council as the apex regulatory and coordination body for EV policy, licensing, standards, and incentive administration across all tiers of government Local Manufacturing Mandate: Mandates that licensed EV assemblers produce a minimum of 5,000 EV units annually, meeting international safety and technical standards, to qualify for and maintain operational licences Foreign Partnership Requirement: Foreign automakers may only import, sell, or distribute EVs in Nigeria through registered partnerships with licensed local assemblers; they must establish a local assembly plant within three years of commencing operations Local Content Target: Foreign EV companies must attain at least 30% local sourcing of vehicle components by 2030, advancing technology transfer and domestic industrial capacity Comprehensive Incentive Package: Offers tax holidays, import duty waivers, road tax reliefs, toll exemptions, and subsidies for EV users and investors; government grants and tax credits for charging station developers Mandatory Charging Infrastructure: Every fuel outlet across Nigeria must install an EV charging station; government grants and tax credits are available for investors building public charging networks on urban roads and highways Strict Penalties: Non-compliant foreign automakers face fines of up to ₦250 million per violation and possible suspension of operations; unlicensed EV importers or dealers face fines of up to ₦500 million per shipment plus confiscation of goods Regulatory Architecture: SON sets safety and performance standards for EVs, batteries, and charging equipment; Federal Ministry of Transportation oversees licensing and public transport integration; FIRS administers tax incentives; Federal Ministry of Environment ensures climate compliance; Federal Ministry of Power oversees grid and energy supply alignment R&D Protection: Prohibits unauthorised research and development partnerships; government grants for EV innovation must be channelled exclusively through licensed Nigerian institutions to protect local intellectual capital

Current Status

The Electric Vehicle Transition and Green Mobility Bill is under consideration by the National Assembly, having passed its second reading in the Senate and been referred to the Senate Committee on Industry for further review.

Legal Framework

Constitution of the Federal Republic of Nigeria 1999; Climate Change Act 2021; National Automotive Industry Development Plan; Federal Road Safety Commission Act; Electricity Act 2023; Environmental Impact Assessment Act