Govt approves tax waivers for 4,000 electric vehicles

Nigeria's Federal Government has approved tax waivers for almost 4,000 electric vehicles (EVs) imported in the first half of 2026, signaling a renewed push to accelerate the adoption of electric mobility. This move comes despite the nation's ongoing struggles with electricity shortages and a lack of adequate charging infrastructure.

The approvals mark the first batch processed under a new government initiative designed to encourage cleaner vehicle adoption through tax incentives and local assembly programs. This intensifies Nigeria's efforts to transition its transport system away from traditional petrol and diesel vehicles. The country's 2022 Energy Transition Plan aims for electric vehicles to constitute 60 percent of the national fleet by 2050. However, EVs currently represent less than one percent of vehicles on Nigerian roads, numbering only in the tens of thousands.

To make EVs more competitive, Nigeria has implemented several fiscal measures. In 2024, electric vehicles were exempted from value-added tax, and import duties were reduced to zero this year from a previous five percent. These incentives are particularly attractive given the higher petrol prices that followed the removal of the petrol subsidy in 2023, making fuel-efficient and electric options more appealing to motorists and commercial operators.

The most significant hurdle for Nigeria's EV ambitions remains the unreliable electricity supply. The national grid provides approximately 4,000 megawatts to a population exceeding 200 million, resulting in one of the lowest per capita electricity availabilities among major economies. Consequently, millions of households and businesses depend on petrol and diesel generators. This reliance has extended to the emerging EV market, with charging stations and battery-swapping operators increasingly using generators to maintain operations during grid failures. Industry players argue that delaying EV adoption until the electricity system is reliable would be counterproductive.

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The Federal Government has approved tax waivers for nearly 4,000 EVs in the first half of this year, government data showed, as authorities push to accelerate nascent EV adoption despite chronic electricity shortages. The approvals reviewed by Reuters ‌are the first under a new government programme aimed at promoting cleaner transport through tax incentives and local assembly programmes.