Electric Vehicle Transition Bill Scales Second Reading in Senate

By Anayo Akwitti

The Nigerian Senate has passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, sponsored by Senator Orji Uzor Kalu (Abia North).

The Bill is aimed at creating a national framework to drive Nigeria’s shift to electric vehicles (EVs), promote local manufacturing, and enhance environmental sustainability.

The proposed legislation, which enjoyed broad bipartisan support during Wednesday’s plenary, outlines strategies for developing Nigeria’s electric mobility sector through local content development, foreign partnership regulations, nationwide charging infrastructure, and an inter-ministerial coordination mechanism.

Leading the debate, Senator Kalu said the Bill seeks to transform the nation’s automobile and energy industries by promoting innovation, local assembly, and job creation, while reducing carbon emissions and dependence on fossil fuels.

“This Bill will help Nigeria move toward a cleaner and more sustainable energy system. It will ensure that our industries benefit directly from the global electric vehicle market, create jobs, and reduce pollution in our cities,” Kalu stated.

He explained that the Bill provides incentives such as tax holidays, import duty waivers, toll exemptions, and subsidies for EV users and investors. It also mandates the installation of charging points in all fuel stations nationwide.

A key highlight of the Bill is its emphasis on local participation. It mandates that all foreign automakers operating in Nigeria must partner with licensed local assemblers and establish assembly plants within three years of operation. By 2030, companies are required to achieve at least 30 percent local sourcing of components.

Non-compliance will attract strict sanctions, including a ₦250 million fine per violation and potential suspension of operations. Unlicensed importers or dealers of EVs would also face ₦500 million fines and confiscation of goods.

The Bill further prohibits unauthorized research partnerships, ensuring that government incentives for innovation are directed only to licensed Nigerian institutions, it also designates the Federal Ministry of Industry, Trade, and Investment as the coordinating body, supported by key agencies, including:

Standards Organisation of Nigeria (SON) – to set safety and performance standards;
Federal Ministry of Transportation – to oversee licensing and EV integration in public transport;
Federal Ministry of Power – to integrate renewable energy into EV charging systems;

Federal Inland Revenue Service (FIRS) – to manage tax incentives and report on fiscal outcomes; and
Federal Ministry of Environment – to ensure compliance with recycling, waste management, and international climate agreements.

Meanwhile, Senators across party lines lauded the initiative, describing it as a step toward industrial modernization and environmental responsibility.
Senator Adamu Aliero (Kebbi Central) emphasized the environmental benefits, noting that electric mobility would curb air pollution in congested cities like Lagos and Kano.

“Instead of exporting lithium, we should process and use it here to create jobs and diversify our economy,” Aliero said.

Senator Osita Ngwu (Enugu West) linked the transition to Nigeria’s climate commitments, saying: “Clean mobility is part of our national duty to protect future generations from the adverse effects of climate change.”

Senator Titus Zam urged Nigeria to move in step with global trends, warning that the country must not “lag behind” as electric vehicle adoption accelerates worldwide.

Beyond environmental gains, the Bill seeks to expand local industrial capacity and create a new economic ecosystem around electric vehicles.

Clause 3 requires that any Nigerian company assembling EVs must have a minimum annual production capacity of 5,000 units, meet international safety standards, and show financial and technical sustainability.

Private investors establishing charging stations will qualify for government grants and tax credits, while fuel stations nationwide must include EV charging points to ease adoption.

“Our goal is to make Nigeria the hub of electric vehicle manufacturing in Africa,” Kalu reiterated.
After extensive debate, the Bill was passed for second reading through a voice vote presided over by the president of the Senate Godswill Akpabio, who praised Senator Kalu’s foresight.

“This Bill aligns with President Bola Tinubu’s economic diversification agenda and Nigeria’s transition toward cleaner energy,” Akpabio said.
The Bill has been referred to the Senate Committee on Industry for further legislative consideration and is expected to report back within four weeks.