Nigerian market not mature for electric vehicles, say stakeholders

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Industry experts have cautioned against the early adoption of electric vehicles in Nigeria.

They said the obstacles include inadequate power supply, scarcity of certified EV technicians, limited charging infrastructure, and the need for specialised training to service various EV models.

“There are still lots of debates going on around this. Some big auto firms are building electric cars while some have not,” the Chief Executive Officer of Autogig International Resources Limited, Tope Ojo told The PUNCH.

“I had the opportunity to speak with a senior executive in the US and I asked him which area of investment Toyota is focusing on – EVs, internal combustion engines, or hydropowered vehicles.

“He just laughed and said they aren’t even sure of the future yet, but the development is just cutting across. They are increasing capacity for all segments. So, that tells you a lot.”

Ojo said to become EV-friendly for customers, Nigeria needs to address the challenges and provide charging infrastructure in all states.

He said, “The lithium you use to manufacture batteries for electric vehicles is mined somewhere, which is also causing some challenges. But for Nigeria’s auto market, it is not ready for EVs. We need to focus on our competitive advantage and not play second fiddle. There are factors to look at.”

The Nigerian government has shown commitment towards the development of electric vehicles and has proposed policies and plans to support the adoption and production of EVs.

Last year, the National Automotive Design and Development Council acquired locally-assembled electric vehicles with charging infrastructure from Nigerian Jet Motors.

The Electric Vehicle Development Plan has entered its final stage for ratification and implementation, which aims to position Nigeria as a leading country in EVs.

Ojo wondered, “How many certified EV technicians do we have in the country? If you want to work on BMW vehicles, for example, you need to be BMW EV certified. To work on Ford, you have to be Ford certified.”

Highlighting the industry’s lag in this area, he emphasised the abundance of natural resources like tin and lithium that need harnessing.

He stressed the importance of focusing on and mastering Nigeria’s competitive strengths for the betterment of the economy.

Several firms are developing electric vehicles in Nigeria. Some of the top electric vehicle startups and companies in Nigeria include TOUR Drive NG, VoltaEV, Hellobikee, Quadricycle Automobile, Trekk Scooters, and Possible Electric Vehicle Solution, etc.

Ojo remarked, ‘Whoever says he wants to develop EV will probably have buyers from somewhere else. But Nigeria is a funny market. I have seen a couple of Tesla vehicles here. Yes, there will be lots of campaigns several firms are developing and all that.’”

The exact number of electric vehicles in Nigeria is not readily available, but Stallion Motors said the company had only sold 120 units of Kona, (Nigeria’s first EV) since its launch in 2020.

After-sales expert at Rapida Mobility Solutions, Henry Eniediabasi, said Nigerians were ready to explore electric vehicles, provided that would reduce costs on maintenance and fuelling.

However, Eniediabasi noted that it was not yet ready for electric vehicles due to several challenges, including power supply issues and the lack of charging infrastructure.

“Currently, I believe it is not a market fit in our region due to the lack of available infrastructure, such as charging stations, and the unavailability of replacement parts.

“Those who choose to venture into this now may depend on the product owner to keep them on the road at all times, given the potential monopoly situation,” Eniediabasi asserted.