Nigeria Set to Dump Petrol Cars as Senate Backs Electric Vehicle Transition Bill

The Nigerian Senate has taken a major step toward ending the era of petrol-powered cars with the passage of the Electric Vehicle Transition and Green Mobility Bill 2025 for its second reading.

The proposed law seeks to establish a national framework for the adoption of electric vehicles (EVs), promote local manufacturing, and align Nigeria with the global push for clean and sustainable energy.

Sponsored by Senator Orji Uzor Kalu (Abia North), the bill aims to phase out petrol cars in phases while incentivizing investment and innovation in the green mobility sector. It provides for a range of incentives such as tax holidays, import duty waivers, toll exemptions, and government subsidies for both EV users and investors.

During Tuesday’s plenary, lawmakers described the bill as a visionary and economically strategic move, noting that it would transform the nation’s automotive and energy sectors, create jobs, and strengthen environmental protection.

According to the draft, all fuel stations across Nigeria will be required to install electric vehicle charging points. The bill also mandates that foreign automakers seeking to sell EVs in Nigeria must partner with licensed local assemblers and set up domestic assembly plants within three years. By 2030, companies must source at least 30 percent of their vehicle components locally, with violations attracting fines of up to ₦250 million per breach.

To position Nigeria as a continental hub for electric vehicle production, local assemblers will be required to produce at least 5,000 EV units annually, meeting international safety and technical standards. Investors in charging infrastructure will also be eligible for grants and tax credits under the new policy.

Senate President Godswill Akpabio praised the initiative as a “forward-looking legislation” that complements President Bola Tinubu’s vision for economic diversification and environmental sustainability.

“This marks a necessary shift toward the future of transportation and green innovation,” Akpabio said.

The bill has been referred to the Senate Committee on Industry for further legislative work and is expected to return to the chamber within four weeks for a third reading and final passage.

Meanwhile, in a related development, China has disclosed plans to establish an electric vehicle plant in Nigeria. The announcement came during a visit by China’s Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development. Ambassador Dunhai emphasized China’s interest in Nigeria’s vast solid mineral resources, particularly those critical to EV battery production, as part of efforts to deepen industrial cooperation between both nations.

If passed into law, the Electric Vehicle Transition and Green Mobility Bill could signal the beginning of Nigeria’s move away from petrol dependency — and toward a cleaner, technology-driven automotive future.