Nigeria Approves Tax Waivers For 4,000 Electric Vehicles In First Half Of 2026 Despite Power Challenges

Nigeria is stepping up efforts to increase electric vehicle (EV) adoption, with nearly 4,000 EVs receiving tax waivers in the first half of 2026, according to a Reuters report. The approvals are part of a government programme supporting cleaner transportation, local assembly and wider EV adoption.

Nigeria’s 2022 Energy Transition Plan targets EVs accounting for 60% of the country’s vehicle fleet by 2050. To encourage buyers, the government exempted EVs from value-added tax in 2024 and reduced import duties to zero this year from 5%.

Higher petrol prices following the removal of the fuel subsidy in 2023 have also increased interest in electric motorcycles, cars and buses. However, Nigeria’s ambitious EV plans are facing a familiar problem: unreliable electricity.

According to the report, the national grid supplies around 4,000 megawatts to more than 200 million people, creating a challenge that leaves charging stations, dealerships and battery-swapping operators dependent on petrol and diesel generators when grid electricity fails.

Reuters reported that Nigeria had about 48 public EV charging stations by late 2025, mainly concentrated in Lagos and Abuja, compared with more than 500 in South Africa. As a result, many EV owners charge their vehicles at home using portable cables connected to household outlets.

Bolanle Boboye, an executive at SAGLEV, Nigeria’s first electric vehicle manufacturer, said the country should not wait for perfect electricity before embracing EVs.

“If we wait for electricity to become perfect before adopting EVs, the rest of the world will leave us behind,” he said.

Boboye added that EVs could still reduce emissions even when charged with diesel-generated electricity, saying “even when EVs are charged using diesel-generated electricity, they can still help reduce overall emissions.”

Interestingly, unreliable power is also influencing the vehicles Nigerians choose as Boboye noted that sales of extended-range EVs doubled this year because their fuel-powered range extenders help drivers overcome charging limitations.

Chinese automakers including BYD and Geely are also expanding their electric and hybrid offerings in Nigeria. While tax incentives could accelerate adoption, Nigeria’s EV transition will ultimately depend on more reliable electricity and a much stronger charging network.

Source: Reuters

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