In a move that could fundamentally redraw Africa’s industrial map, the Federal Government of Nigeria signed a landmark Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) on January 30, 2026. This agreement paves the way for the establishment of Africa’s first full-scale Electric Vehicle (EV) manufacturing plant and a nationwide charging infrastructure network.
The project is a centerpiece of President Tinubu’s “Nigeria First Policy”, aimed at shifting the nation from a consumer of imported used cars to a hub for high-value green manufacturing.
1. The 300,000-Vehicle Ambition
The partnership, signed by the Minister of State for Industry, Senator John Owan Enoh, and AEDC Chairman Yoon Suk-hun, targets an unprecedented level of local production.
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Production Goal: Once fully operational, the plant is projected to produce 300,000 electric vehicles annually.
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Job Creation: The initiative is expected to generate approximately 10,000 direct jobs and thousands more across the auxiliary supply chain (battery tech, auto parts, and maintenance).
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Phased Implementation: The project follows a “crawl-walk-run” approach:
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Phase I: Focus on Complete Knock-Down (CKD) assembly to establish immediate presence.
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Phase II: Transitioning to full in-house production, including the localization of critical components.
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2. Solving the “Import Leak”
Nigeria currently spends an estimated $10 billion annually on refined fuel imports and over $1 billion on passenger car imports. The EV transition is designed to plug this leak.
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Used Car Dominance: Currently, 74–90% of vehicles imported into Nigeria are pre-owned. The new plant aims to offer a locally manufactured, cost-competitive alternative.
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Consumer Incentives: To drive adoption, the government launched a ₦20 billion ($12 million) consumer credit scheme in late 2024, providing financing for locally assembled electric cars, tricycles, and motorcycles.
3. Building the Ecosystem
Unlike previous pilot projects (such as the 2022 Israeli/Japanese collaboration), the AEDC deal includes a commitment to build the infrastructure necessary for EVs to survive on Nigerian roads.
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Charging Networks: Plans include a nationwide rollout of charging stations to alleviate “range anxiety.”
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Technology Transfer: The National Automotive Design and Development Council (NADDC) will lead efforts to ensure Nigerian engineers are embedded in the research, design, and manufacturing processes.
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Policy Alignment: The deal is anchored in the National Energy Transition Plan (ETP), which targets a 100% transition to EVs by 2060.
The African EV Landscape (Mid-2025 Data)
While Nigeria aims for the lead, other African nations have already begun their journey:
| Country | EV Units in Use | Primary Focus |
| Ethiopia | ~100,000 | Massive import tax exemptions |
| Ghana | ~17,000 | E-motorcycles and bus fleets |
| Morocco | ~10,000 | Industrial export to Europe |
| Nigeria | Growing | Large-scale domestic manufacturing |
The Challenges Ahead
Analysts at EV24 Africa and other industry observers note that for this “Green Leap” to succeed, the government must address:
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Power Grid Stability: EVs require a reliable source of electricity for charging.
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Infrastructure Cost: Rolling out a nationwide charging network in a country as large as Nigeria is a massive capital undertaking.
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Local Supply Chain: Developing a local “battery-grade” chemical industry to support manufacturing.
