By peterside Rejoice
The Nigerian Senate on Wednesday passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, sponsored by the Chief Whip of the Senate, Senator Orji Uzor Kalu, representing Abia North Senatorial District.
The proposed legislation seeks to establish a comprehensive national framework for Nigeria’s gradual shift from fossil fuel vehicles to electric mobility. It aims to promote local manufacturing, ensure environmental sustainability, and position the country as a major player in Africa’s clean energy transportation sector.
The Bill, which was extensively debated during plenary, provides clear policy directions on how Nigeria will achieve the transition through local content development, foreign partnership regulation, the establishment of nationwide charging infrastructure, and inter-ministerial collaboration among key government agencies.
Leading the debate, Senator Kalu said the Bill was designed to transform Nigeria’s automobile and energy sectors by encouraging innovation, local assembly, and environmental protection, while creating thousands of jobs across the manufacturing value chain. He explained that the initiative would help Nigeria move away from its dependence on fossil fuels and align with the global transition toward clean energy.
“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 said.
He noted that the Bill provides incentives such as tax holidays, import duty waivers, toll exemptions, subsidies, and road tax exemptions for electric vehicle users and investors. It also makes it mandatory for all filling stations across the country to install charging points to encourage nationwide adoption of electric vehicles.
One of the key features of the Bill is its strong emphasis on local content compliance. It mandates that all foreign automakers seeking to operate in Nigeria must partner with licensed Nigerian assemblers and establish assembly plants within three years of operation. By 2030, such companies are required to source at least 30 per cent of their components locally.
Non-compliance, according to the Bill, attracts strict penalties, including suspension of operations and a fine of N250 million per violation.
Unlicensed dealers involved in the importation or sale of electric vehicles without government authorization will face a fine of N500 million per shipment, in addition to confiscation of the goods.
The Bill also prohibits unauthorised research and development partnerships, ensuring that government grants or incentives for electric vehicle innovation are channelled through licensed Nigerian institutions.
According to Kalu, the proposed law creates a framework that protects Nigerian industries and ensures that technology transfer and innovation take place locally.
The regulatory structure will be coordinated by the Federal Ministry of Industry, Trade and Investment, with support from relevant ministries and agencies responsible for setting standards, overseeing transport and power integration, administering tax incentives, and ensuring environmental compliance.
During the debate, senators across party lines commended Kalu for sponsoring a forward-looking Bill that aligns with global technological and environmental trends.
Senator Adamu Aliero (Kebbi Central) highlighted the importance of reducing Nigeria’s carbon footprint, especially in industrialized and traffic-congested cities. He said electric vehicles would help cut down air pollution, improve public health, and open up a new industrial ecosystem for the country.
“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 (Enugu West) added that adopting electric vehicles would help Nigeria address the long-term dangers of climate change, which are already affecting communities and agricultural productivity.
Senator Titus Zam also argued that Nigeria could no longer afford to lag behind, as several countries around the world, including those in Africa, had already begun implementing electric vehicle policies.
Beyond environmental benefits, the Electric Vehicle Transition and Green Mobility Bill also seeks to unlock new economic opportunities by expanding local production capacity and strengthening Nigeria’s participation in the global EV value chain.
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 setting up charging stations will be eligible for government grants and tax credits, while fuel stations across the country will be required to provide charging points to ensure seamless adoption.
“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 said.
After an extensive debate, the Bill was put to a voice vote and passed for second reading, with Senate President Godswill Akpabio presiding. Akpabio commended Senator Kalu for his foresight, describing the Bill as a forward-looking initiative that aligns with President Bola Tinubu’s economic diversification and energy transition 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 was subsequently referred to the Senate Committee on Industry for further legislative scrutiny and is expected to report back to the chamber within four weeks.Is this conversation helpful so far?
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