Nigeria Approves Tax Waivers for 4,000 Electric Vehicles

The Federal Government of Nigeria has approved tax waivers for almost 4,000 electric vehicles (EVs) imported in the first half of 2026, as part of a new initiative to accelerate electric mobility. This initiative aims to encourage the adoption of cleaner vehicles through tax incentives and local assembly programs, despite the country's persistent electricity shortages.

The approvals represent the first batch processed under this program. Nigeria's 2022 Energy Transition Plan targets that electric vehicles will account for 60 percent of the vehicle fleet by 2050, although current estimates suggest EVs make up less than one percent of the fleet.

The government has implemented fiscal measures, including exempting EVs from value-added tax in 2024 and reducing import duties to zero this year. However, the national grid's electricity supply remains inadequate, with only around 4,000 megawatts available for over 200 million people, leading to reliance on petrol and diesel generators, which also affects the emerging EV market.