Nigeria approves EV tax waivers

Nigeria approved tax waivers for nearly 4,000 electric vehicles in the first half of 2026, marking the first approvals under a new government program to promote cleaner transport through tax incentives and local assembly. The government's 2022 Energy Transition Plan targets EVs making up 60% of the vehicle fleet by 2050, up from less than 1% currently. Nigeria exempted EVs from value-added tax in 2024 and cut import duties to zero in 2026 from 5%. However, adoption is hampered by chronic electricity shortages, with a 4,000-megawatt grid serving over 200 million people, one of the lowest per-capita power availabilities among major economies. This forces reliance on diesel and petrol generators, including for EV charging. Public charging infrastructure is limited, with about 48 stations as of late 2025, mostly in Lagos and Abuja, compared to over 500 in South Africa. To cope, many owners charge at home, and extended-range EVs have seen sales double this year. Chinese brands BYD and Geely are expanding with hybrid and electric models, with Geely's local partner Tim Motors reporting new-energy vehicles at about 2% of sales. Electric motorcycles and tricycles are seen as the clearest near-term path, with startups like Donda X Limited cutting operating costs by two-thirds, and Max and Spiro investing in battery-swapping networks.