Post-fuel subsidy: Nigerian Government acquires Nigeria-made Electric Vehicles from Jet Motors

As millions of Nigerians come to terms with the fuel subsidy removal, the National Automotive Design and Development Council (NADDC), a federal government agency, seems to have done the math as it recently bought some Nigeria-made electric vehicles from Jet Motors. This is a significant move that signals the future of mainstream mobility in the country.

This was confirmed to Technext by the Chief Operations Officer of Jet Motors, Joseph Oluwemimo Osanipin.

Osanipin said that the decision of the Federal Government to consider EVs as an alternative to internal combustion engines (ICE) was remarkable. He believes that electric vehicles will spearhead Nigeria’s future of mobility. He also expressed delight that his company was leading the charge alongside others.

Osanpin told Technext that the NADDC will build the solar-powered charging infrastructure, including those along highways. He said this would drive mass transporters to adopt EV vehicles for their businesses.

“Mass transporters can now buy EV buses that they can charge along the way. EV buses these days go 300 kilometres and more on full charge and you only need 40 minutes for full charge. This reduces the cost of transportation by 70 percent because you save on petrol which is now very high and also almost zero on maintenance costs.

Joseph Oluwemimo Osanipin

Joseph pointed out that EVs do not require monthly oil servicing or dealing with carburettors, plugs and other parts. They also eliminate the possibility of buying fake components as well as the mechanic hassles that come with fixing fossil-powered vehicles.

Established via Act 83 on 30th May 2014, NADDC is dedicated to encouraging the purchase of locally-made buses. Its decision to acquire Jet’s locally-produced vehicles passes a vote of confidence on electric mobility. Patronizing an indigenous company also contributes to the nation’s quest to strengthen its economy. 

Both Jet Motors and NADDC will now look to optimize opportunities arising from changes to the market and the new direction of the new government. The task of building adequate local capacity for vehicle production, as they both admit, is herculean, demanding the very best of dedication and continuous application.

Director-General of NADDC, Jelani Aliyu, while responding to questions, said the Council was committed to sustainable mobility in the country, citing the Paris Agreement as a roadmap to net zero.

He said the NADDC was determined to support local content in its drive to revolutionize mobility in the country, ensuring that through policy and direct intervention, the local automotive industry developed into a thriving ecosystem.

The Jet Motor Company was founded in 2018 by Chidi Ajaere. The company was created to provide affordable and eco-friendly transportation options for Africa and produces a variety of electric vehicles ranging from passenger to utilitarian vehicles— ambulances, military vehicles, and delivery vans.

In 2019, JET launched its flagship brand, the JET MOVER, a multipurpose van to push the adoption of locally made vehicles.

The Mover buses are currently in use by the Edo, Delta and Lagos state governments as well as top road transport companies including GIGM. The mobility startup already employs these JET vans along its major routes in Nigeria and Ghana.

Similar: How JET Motors is leading Africa into a new era of mobility with electric vehicles

Why this matters…

Recall that upon his inauguration, President Bola Tinubu declared that the controversial fuel subsidy regime was over. Shortly afterwards, petrol stations hiked the pump price to between N500 and N700 in some regions.

While this loosely translates into people paying more per litre and an attending increase in the price of goods and services, it presents an opportunity for Nigerians to explore other means of transport. To mitigate this cost, a number of citizens are already switching to cooking gas to power their home generators as well as their cars. The cost may be a little cheaper but not a lot cheaper than petrol. So, electric vehicles should naturally be the better alternative.

But, a familiar concern for many Nigerians that have heard about electric vehicles like Tesla is how will it survive on the hazardous roads in Nigeria, especially with the absence of charging stations. Although there have been a few electric charging stations in Lagos, this wouldn’t be enough to power a significant volume of Nigerian mobility needs.

According to statistics drawn from the NBS, about 70% of road transport is interstate and these happen on Federal Government roads. Hence, the government can boost the EVs adoption across the country by investing in charging stations on major highways across the country. The cost of real estate is significantly lower than in the major cities.

An average EV has a battery capacity of about 107.6 kilowatts. According to a technical lead at JET Motors, their vehicles can cover a distance of 300 km on a full charge. That means that a fully charged EV can go from Lagos to Benin. If there charging stations in stop cities like Ore, with surrounding communities of restaurants and hotels, drivers can stop to charge for about 30 minutes to get about extra 150 km charges that can take them to their destinations.

With this simple step, the government can convince private transport companies and individuals to adopt Electric Vehicles. And why not? Evs are cheaper to drive and maintain.

Good enough, EVs, coming from a place of an automobile revolution, are perceived as some sort of solution to the climate crisis. The current reports estimate that about 40% of the global export of used vehicles comes to Africa. In Nigeria, Kenya and Ethiopia, it is estimated that about 80–90% of total vehicles are imported.

Meanwhile, the NADDC said that the acquisition of Jet EVs reiterated its commitment to promoting clean mobility in line with the Paris Agreement. The Paris Agreement seeks to encourage the reduction of countries’ carbon footprint and help them tackle the impact of climate change, among other things. 

Read also: Limited charging infrastructure and other problems with Nigeria’s 30% electric vehicles production plan 

Towards actualizing large-scale adoption of EVs 

The race for Africa’s electric vehicle (EV) space has already begun. Despite the many deterring challenges like poor power generation and infrastructure on the continent, some players have nonetheless, decided to be pioneers of the industry.

In Kenya, ARC Ride has started penetrating the market with its electric two- and three-wheelers. Similarly, Rwandan start-up Ampersand and Uganda’s Kiira Motors are making a push with their electric bikes and locally-made electric buses respectively.

Innovations like EVs aren’t new to Nigeria, but what matters most, aside from the potential benefits, is the adoption rate. EVs need a significant number of users, regular people and public officeholders who recognize that not depending on petrol vehicles isn’t a bad idea.

For that to happen in a country endowed with crude oil deposits, the Nigerian government must support the EV initiative.  

Commenting on the NADDC’s decision to buy locally-made EVs, Osanipin praised the agency for always being a “true champion of local content.” He added that its “policy and strategic support” have provided an enabling space for local vehicle makers to design and produce game-changing mobility solutions for Nigeria and other markets

By trusting Jet Motors, Osanipin believes that the NADDC has “opened a chapter of possibilities” for the company. 

“We have no choice but to think and do electric vehicles. This is a reliable and sustainable path to take. The government will need to show great commitment in terms of incentives and strategic support if we are to make electric vehicles mainstream in Nigeria,” he added.