Nigeria seals deal to build Africa’s first EV manufacturing powerhouse
Nigeria has signed a landmark agreement that could position the country as Africa’s first major electric vehicle (EV) manufacturing hub, marking a decisive shift from decades of vehicle import dependence to local clean-tech industrial production. The Federal Government, through the Federal Ministry of Industry, Trade and Investment (FMITI), sealed the deal with South Korea’s Asia […]
Nigeria has signed a landmark agreement that could position the country as Africa’s first major electric vehicle (EV) manufacturing hub, marking a decisive shift from decades of vehicle import dependence to local clean-tech industrial production.
The Federal Government, through the Federal Ministry of Industry, Trade and Investment (FMITI), sealed the deal with South Korea’s Asia Economic Development Committee (AEDC) in Abuja, formalising plans to establish a large-scale EV assembly and manufacturing plant alongside a nationwide charging infrastructure network.
Daily Trust reports that Nigeria’s move towards vehicle electrification has been stunted over the years due to inadequate infrastructures with very few electric vehicles on Nigerian roads.
The Memorandum of Understanding (MoU) outlines an ambitious two-phase development strategy. The first phase will focus on assembling electric vehicles locally, while the second will transition to full-scale manufacturing with in-house production of critical components, including batteries and parts.
When fully operational, the facility is projected to produce up to 300,000 electric vehicles annually and generate about 10,000 direct jobs, with thousands more expected across logistics, supply chains, maintenance services, and related industries.
Government officials say the project addresses both industrial and macroeconomic priorities. Nigeria currently spends an estimated $10 billion annually importing refined petroleum products — a burden on foreign exchange reserves that mass EV adoption could help ease. By promoting electric mobility, the country hopes to cut fuel imports, reduce emissions, and strengthen energy security.
The initiative aligns closely with Nigeria’s National Energy Transition Plan (ETP) and the National Automotive Industry Development Plan (NAIDP), which aim to diversify the economy, encourage local manufacturing, and accelerate the adoption of cleaner technologies.
Beyond vehicle production, the partnership seeks to build a complete electric mobility ecosystem. Plans include developing battery technology, charging stations nationwide, auto parts manufacturing, and specialised training centres to support vehicle servicing and maintenance.
Speaking at the signing ceremony, AEDC Chairman Yoon Suk Hun described the agreement as a transformative step for Nigeria’s industrial future, pledging sustained technical and financial commitment to the project.
Drawing parallels with South Korea’s rapid industrialisation, Yoon said the collaboration could help Nigeria achieve in decades what took advanced economies over a century to accomplish.
“We see Nigeria as a strategic partner and a future automotive leader in Africa,” he said. “Our goal is to help build a globally competitive industry driven by innovation and local expertise.”
Minister of State for Industry, Senator John Owan Enoh, reaffirmed the Federal Government’s support, promising accelerated implementation and inter-agency coordination to ensure the project’s success.
He described the agreement as central to President Bola Ahmed Tinubu’s “Nigeria First Policy,” which prioritises domestic production, value addition, and industrial self-reliance.
“This is not just about building a factory,” Enoh said, adding, “It is about creating jobs, transferring technology, empowering Nigerian engineers, and positioning the country for the industries of the future.”
The National Automotive Design and Development Council (NADDC) added that the partnership will emphasise technology transfer, research and development, and human capital growth, ensuring Nigerian professionals play key roles across the value chain.
According to the Council, groundwork has already been laid through existing EV policies and pilot projects, including the introduction of locally assembled electric vehicles into the domestic market.