The Federal Government has removed the five per cent import duty on electric vehicles, triggering projections of lower prices and faster adoption, while industry players warn of an impending price war.
The policy, introduced in mid-April under President Bola Tinubu, also exempts electric vehicles from green taxes imposed on high-emission vehicles.
Industry stakeholders described the move as a turning point for EV adoption in Nigeria.
Olabisi Ajayi, chief executive of an electric vehicle firm, said the policy will open up the middle market, allowing electric vehicles to move from luxury interest to mainstream consideration.
Uche Madunagwu, another EV distributor, said ride-hailing companies and logistics firms are already calling, expecting demand to spike faster than inventory cycles can adjust.
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“We are preparing for a price war phase. When duties disappear, the biggest manufacturers win on scale,” Madunagwu said.
Dr. Kaycee Orji, Chairman of Roxettes Group, warned that without a clear transition strategy, Nigeria risks becoming a dumping ground for used internal combustion engine vehicles from countries enforcing phase-out timelines.
“The idea is to send a signal that Nigeria is not a dumping ground for used ICE vehicles,” Orji said, adding that the legislation also aims to protect local investors.
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An Abuja-based automotive specialist noted that removing import duties instantly changes the price structure, creating a demand shock that could lead to an import-dominated market without local production incentives.
A charging station operator said infrastructure providers are planning for a significant jump in demand within 12 to 24 months, with electricity access points becoming the main constraint rather than vehicles.
Nigeria’s passenger car imports rose to N1.58 trillion in 2025, according to the National Bureau of Statistics.
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