Nigeria Removes 5% Import Duty on Electric Vehicles

The Nigerian government, under President Bola Ahmed Tinubu's administration, has eliminated a 5% import duty on electric vehicles (EVs) as of mid-April. This policy aims to stimulate the electric mobility sector and is expected to lead to lower prices and faster adoption of EVs.

Stakeholders in the industry view this as a pivotal moment for the EV market, although there are concerns about increased competition potentially disrupting the market. Roxett Group Chairman, representing Roxett Motor, emphasized the need for a clearly defined EV transition strategy to prevent Nigeria from becoming a dumping ground for used internal combustion vehicles.

The policy is part of a broader initiative to promote clean energy transit and reduce transport costs amid rising fuel prices. However, industry experts caution that demand-side incentives alone may not be sufficient to build a sustainable EV ecosystem, highlighting the need for infrastructure development, such as charging stations, to support the expected surge in demand.