Nigeria is making EVs cheaper, but unreliable electricity could slow adoption

Nigeria is taking steps to facilitate the import of electric vehicles (EVs) into the country. The government has eliminated import duties on EVs and, according to data from Reuters, has granted tax waivers for nearly 4,000 electric vehicles in the first half of 2026. This suggests that an electric vehicle boom may be on the horizon.

However, there is a significant challenge beneath the surface: Nigeria is attempting to develop an electric transport market while grappling with an electricity system that struggles to consistently deliver power to homes and businesses. Currently, Nigeria’s power grid provides around 4,000 megawatts for a population of more than 200 million people. When the grid goes down, both businesses and households often rely on petrol and diesel generators.

The electric vehicle industry faces similar obstacles. Reuters found that charging stations, dealerships, and battery-swapping operators are resorting to generators when the grid’s electricity supply is unreliable.

This raises an important question for a country promoting electric vehicles (EVs) as part of a cleaner transportation future: how environmentally friendly is an electric vehicle if its battery is charged using electricity generated from diesel?

The EV problem is becoming an electricity problem

Consider a Lagos driver who purchases an electric car. The appeal is clear: petrol prices have significantly increased since the subsidy was removed, while an electric vehicle (EV) offers lower running costs. However, the driver needs a reliable place to charge the vehicle.

Charging at home may seem straightforward, but what happens when the power goes out? A driver who typically plugs in overnight may find themselves waiting for electricity to return, searching for a public charger, or relying on another power source. For someone who depends on their car for work every day, this uncertainty can be a more significant issue than the cost of the vehicle itself.

Public charging stations do not currently resolve the problem either. A policy brief published in 2025 reported that Nigeria has about 48 public charging stations, primarily located in Lagos and Abuja. In contrast, South Africa had over 500 public charging stations at that time. Nigeria’s Energy Transition Plan outlines an ambitious long-term goal: the government aims for electric vehicles to comprise 60% of the vehicle market by 2050, with charging infrastructure expanding alongside adoption.

This creates a mismatch. Simply making EVs more affordable will not ensure widespread adoption. The country also needs sufficient electricity supply, charging points, distribution infrastructure, and reliable power at these charging stations for people to trust an EV in their daily lives.

This is where Nigeria’s EV story becomes more intriguing. Instead of waiting for the national grid to become reliable, some parts of the industry are innovating to circumvent this issue. Electric motorcycles and tricycles may actually have a better chance of scaling before electric cars do.

For a commercial motorcycle rider, the economic calculation differs from that of a private car owner. Fuel is often one of the biggest daily expenses. An electric motorcycle can significantly reduce those running costs, and battery swapping allows riders to avoid lengthy charging times. Instead, they can arrive at a swap station, exchange their depleted battery for a fully charged one, and continue working.

Similar read: Solar energy now powers 20% of Nigeria’s electricity usage, to hit 50% in 3 years

How Spiro and MAX are building battery-swap networks around Nigeria’s power problem

The model that companies like Spiro and MAX are adopting is central to Nigeria’s Energy Transition Plan, which highlights the importance of two- and three-wheelers in transforming the country’s transport sector. The government recognises Spiro as a provider of electric bikes and battery-swapping services in key states like Ogun, Oyo, Lagos, and the Federal Capital Territory (FCT). MAX is also known for its electric mobility initiatives, including a pilot programme for electric motorcycles in Gbamu-Gbamu, Ogun State.

MAX is focusing on deploying electric motorcycles and tricycles, aiming to support commercial operators instead of just selling electric vehicles to individual consumers. On the other hand, Spiro is advancing the battery-swapping model across Africa, claiming to have deployed 22,000 electric motorbikes and completed over 15 million battery swaps.

This method offers a more convenient alternative to traditional charging, similar to how petrol stations operate, as it allows riders to quickly swap batteries rather than wait for them to recharge.

This model addresses some challenges related to Nigeria’s electricity supply. Instead of each rider depending on a reliable power source, companies can charge batteries at designated locations and then distribute them as needed. Although this does not entirely resolve Nigeria’s electricity issues, it shifts part of the problem to a more manageable infrastructure that companies can oversee.

Spiro’s growth indicates that investors recognise the value of battery infrastructure in Africa’s electric vehicle (EV) market. The company recently secured $50 million in funding to enhance its battery-swapping network across several countries, including Nigeria, Kenya, and Uganda.

In Nigeria, the shift towards EVs may differ from that in wealthier nations. It may not involve numerous individuals replacing petrol cars with electric ones right away. Instead, we might see commercial riders switching from petrol motorcycles to electric models, delivery services using electric two-wheelers to cut fuel costs, or tricycle operators benefiting from swappable batteries. Hybrid and extended-range vehicles may also become popular, offering drivers a more reliable option while still utilising some traditional fuel.

Also read: Spiro raises new $215M equity funding to expand battery-swap network across Africa

Reports suggest that extended-range EVs and hybrids are gaining traction in Nigeria because they help bypass charging challenges. Chinese brands like BYD and Geely are also expanding their market presence.

Nigeria doesn’t have to wait for a fully functional electricity system to embrace electric mobility. However, it must recognise that the demand for electricity will rise as more EVs hit the roads. The charging network needs to be equipped to handle this increased demand, ensuring reliable power and predictable prices for consumers. If most electricity comes from generators, the environmental benefits of EVs diminish.

Therefore, Nigeria’s approach to EV policy should focus on more than just the number of imported vehicles. While nearly 4,000 EVs receiving tax breaks in six months is a positive sign, the key question is how to establish an easy and efficient electricity and charging system that makes owning an EV more convenient than a petrol vehicle.

Until that is achieved, Nigeria’s transition to electric vehicles will still rely heavily on the same high-cost, unreliable fossil-fuel energy it aims to move away from.