Local EV manufacturing faces financing and import hurdles in Nigeria

Nigeria's transition toward electric mobility continues to encounter structural obstacles, including expensive credit facilities, the influx of inexpensive foreign vehicles, and deficient charging networks, according to Nairametrics reporting.

Speaking to the publication, the head of The ROXETTES Group outlined the strategic requirements for building a viable domestic electric vehicle industry. He noted that commercial transportation offers the most promising entry point for electric mobility, as high-mileage operators like taxi drivers and logistics providers spend substantial sums on conventional fuel and maintenance.

Operating costs and infrastructure

Calculations provided by the company indicate that electric vehicles can offer substantial cost reductions compared to conventional automobiles. Operating with petrol priced at N1,450 per litre versus electricity at N209 per kilowatt-hour, an electric vehicle can yield considerable savings over identical distances once charging losses are factored in. For a commercial driver covering extensive daily routes, these operational efficiencies could translate into monthly savings running into hundreds of thousands of naira.

However, deploying electric fleets successfully requires dependable charging facilities. The firm plans to roll out charging infrastructure progressively across major urban centers and key transport corridors, utilizing a hybrid configuration of grid electricity, solar power, and battery storage to manage high upfront capital requirements.

Manufacturing and industrial hurdles

Despite the clear economic advantages for transport operators, domestic manufacturers face severe macroeconomic headwinds. Foreign exchange fluctuations, steep borrowing costs reaching up to forty percent, and inadequate technical support systems complicate long-term industrial planning. To counter these challenges, the company has finalized the installation of production equipment at its automotive facility located within the Obuaku Industrial City in Ukwa West Local Government Area, Abia State.

Alongside manufacturing efforts, the group is introducing an indigenous ride-hailing platform named BeeRides to integrate electric vehicles into commercial fleets gradually. The corporate strategy embraces a diversified vehicle mix, incorporating electric, compressed natural gas, hybrid, and traditional petrol-powered models to accommodate the current realities of the domestic transport sector.

Why it matters

The push for domestic electric vehicle manufacturing intersects directly with Nigeria's broader energy and economic profile. According to World Bank figures, Nigeria's electricity access stood at 62.5 percent in 2024, while fuel exports accounted for 85.9 percent of merchandise exports in 2025. These indicators highlight the structural paradox facing energy investments in the country: an economy heavily reliant on petroleum exports must simultaneously navigate infrastructural deficits and a low per capita electricity consumption of 140.6 kilowatt-hours.

For energy investors and policymakers, the transition toward electric mobility cannot succeed in isolation from power sector reforms. Expanding industrial assembly and rolling out fast-charging networks will require reliable baseload power and affordable long-term financing. Balancing the growth of clean transport with domestic petroleum refining will remain a central challenge as Nigeria attempts to capture higher value through local technology and manufacturing rather than remaining purely a destination for imported finished goods.