Global Courant
During his inaugural address last week, Nigeria’s new president, Bola Tinubu, announced the abolition of the controversial fuel subsidy. With the announcement, the cost of premium motor brandy (petrol) rose and some archive stations were selling as much as N700 per litre.
The associated impact was immediately apparent in the transport sector, which is highly dependent on fuel consumption. Transport rates went up to 100% in many places. As the economy struggles with the current official fuel rates in excess of N500, the days and weeks to come remain uncertain. In times like these, it is critical to explore alternative measures that can help people navigate these challenging circumstances.
Desperate times, they say, call for desperate measures. Given the economic realities facing Nigeria, I find myself pondering the future of electric cars in Africa’s most populous black nation and largest economy. Right now, electric vehicles (EVs) are emerging as the most viable option as they can alleviate the stress of queuing for fuel or buying it at exorbitant prices. Given the economic realities, I ponder the future of electric cars in Africa’s most populous black nation and largest economy.
Around the world, countries are transitioning from fuel-powered vehicles to electric vehicles that have been dubbed the future of transportation. And the reasons are not hard to pinpoint. Apart from dramatically reducing fuel costs, they are more efficient, environmentally friendly and economical compared to their petrol counterparts.
But while electric vehicle adoption is high in developed regions around the world, its presence in Africa is still in its infancy. South Africa, Mauritius, Seychelles, Rwanda, Kenya and North African countries are early leaders in the African EV market, but the level of adoption shows that the continent is lagging far behind global leaders in electric mobility such as Europe, the US and China,
For example, in Nigeria, the number of electric vehicles (EVs) currently on the roads is incredibly low compared to the country’s population. In fact, it can be compared to the number of people living on Mars. And the main reasons for this disparity are long-standing obstacles to affordability and infrastructure.
Nigeria is a vibrant nation on the African continent, blessed with considerable population, resources and economic strength. However, it remains a developing country where a significant portion of its citizens experience multidimensional poverty. Consequently, owning a vehicle is a luxury that eludes most of the population.
More than 90 percent of Nigerians cannot afford a new car, ie tear rubberso they choose tokunbo cars, making the Tokunbo dealer business in Nigeria very lucrative. As a result, used cars are doing well 95 percent of the Nigerian automotive industry. According to the National Bureau of StatisticsNigeria spent N140 billion on importing used vehicles in the first quarter of 2021 and N150 billion in the fourth quarter of 2020.
On the other hand, electric vehicles are generally more expensive than their combustion engine counterparts, so it’s understandable why it’s not yet ubiquitous. People simply cannot afford it.
But apart from the prohibitive cost, another problem for electric vehicle adoption in Nigeria is the lack of charging infrastructure. The availability and accessibility of charging stations are essential for EV owners. However, in Nigeria, the charging infrastructure is still in its infancy and the number of charging stations is currently very limited, almost non-existent.
Even worse, the country also suffers from an energy shortage to power its infrastructure in commercial numbers. Charging an electric vehicle requires a consistent and reliable source of electricity. However, frequent power outages and an inconsistent electricity supply in Nigeria make it difficult for EV owners to rely on the grid to charge their vehicles. The sentiment commonly expressed by Nigerians regarding the use of electric vehicles (EVs) in the country often focuses on limited charging accessibility. Sometime in 2021, the video of a Tesla Model X towed on the popular Third Mainland Bridge in Lagos was in circulation and many people attributed the reason for the predicament to the lack of charging. Meanwhile, the problem was that the car, like the traditional internal combustion engine, had a blowout.
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Despite any reservations or sentiments, the need to phase out the use of imported fossil fuel used vehicles remains non-negotiable. This is due to the financial burden placed on citizens due to the high cost of fuel and the environmental impact. However, the aforementioned ongoing challenges raise the question of how to overcome them and successfully achieve widespread adoption. One possible solution lies in the widespread adoption of electric vehicles for public transport.
Last month, Lagos joined the growing list of global cities embracing electric vehicles when it launched its Electric-Mass Transit buses in partnership with Oando Clean Energy Limited. The electric buses can drive up to 280 kilometers (km) without recharging. This distance exceeds the daily travel distance covered by fossil fuel buses. To give some context, the distance from Lekki to Oshodi is about 28 km. This means they can travel the route about ten times before needing a recharge.
There are already active players in the country’s EV industry. Nigerian car manufacturing company JET Motor Company (JMC) brought the EV revolution to Nigeria after introducing its custom-built electric vehicles with optimal specifications suited to the Nigerian and African environment. At the same time, the e-mobility start-up MAX has also made significant progress by deploying its electric motorcycles in Nigeria during the same period. In addition, in 2022 the Nigerian government signed a memorandum of understanding (MOU) with Israeli and Japanese companies to begin production of electric vehicles (EVs) in Nigeria.
These are remarkable advancements and indicate the growing presence and potential of electric cars in Nigeria’s transport landscape. Now is the ideal time for Nigeria to embrace and accelerate EV adoption, leveraging the momentum created by the recent milestones and collaborations.
As the infrastructure for electric vehicles (EVs) continues to expand and more people witness the benefits of electric buses for public transport, interest and attention to electric vehicle ownership among citizens will inevitably increase.
