Senate advances Electric Vehicle Transition bill for second reading

The Nigerian Senate has passed the Electric Vehicle Transition and Green Mobility Bill, 2025, for its second reading.

Sponsored by Senator Orji Uzor Kalu (Abia North), the bill aims to establish a national framework to guide Nigeria’s transition from fuel-powered vehicles to electric ones, while promoting local manufacturing and reinforcing the nation’s environmental sustainability goals.

Lawmakers expressed strong support for the legislation, highlighting the need to position Nigeria as a key player in the global shift toward cleaner transportation.

The bill outlines strategies to achieve this through local content development, foreign partnerships, and the rollout of a nationwide electric vehicle charging infrastructure.

Leading the debate, Kalu said the law aims to transform Nigeria’s automotive and energy sectors, foster innovation and create jobs across the manufacturing value chain.

He noted that the bill provides tax holidays, import duty waivers, toll exemptions, subsidies and road tax reliefs for EV users and investors. It also mandates the installation of charging stations in all fuel outlets nationwide.

A key provision requires foreign automakers to partner with licensed Nigerian assemblers and establish local assembly plants within three years, with at least 30 percent local content sourcing by 2030. Violations could attract fines of up to 250 million naira per breach, while unlicensed EV importers risk 500 million naira fines and goods confiscation.

Economically, the bill also seeks to make Nigeria a hub for EV manufacturing in Africa by mandating that assemblers produce a minimum of 5,000 units annually and meet international safety and technical standards. Investors establishing charging stations will also qualify for government grants and tax credits.

The Senate President, Godswill Akpabio, described it as a forward-looking legislative effort aligned with President Bola Tinubu’s economic diversification and clean energy agenda.

The bill has been referred to the Senate Committee on Industry for further review and is expected to return to the chamber within four weeks.

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