Nigeria has signed an agreement with South Korea’s Asia Economic Development Committee (AEDC) to establish what is expected to become Africa’s first large-scale electric vehicle (EV) manufacturing plant, marking a significant step toward building a domestic EV industry.
The agreement was signed on January 30, 2026, by Nigeria’s Minister of State for Industry, Senator John Enoh, and AEDC Chairman, Yoon Suk-hun.
The development forms part of the federal government’s broader strategy to localise vehicle production while accelerating the adoption of clean energy technologies.
Don’t Miss This: Africa’s largest hydropower project reshapes Ethiopia’s regional influence
According to a statement released by the National Automotive Design and Development Council (NADDC), the partnership will support the establishment of an EV manufacturing facility alongside the rollout of critical charging infrastructure across the country.
The project aligns with Nigeria’s National Energy Transition Plan and the National Automotive Industry Development Plan.
The EV plant will be developed in phases, starting with vehicle assembly before expanding into full-scale manufacturing. When fully operational, the facility is projected to produce up to 300,000 electric vehicles annually and create approximately 10,000 jobs.
Nigeria’s automotive sector has long faced challenges, including high import dependence, limited local component production, and elevated assembly costs.
The country imports between 400,000 and 720,000 vehicles each year, the majority of which are used vehicles. In 2023 alone, vehicle imports reached about 700,000 units, with passenger car imports valued at over $1 billion in 2024.
To support the transition to electric mobility, the federal government introduced a ₦20 billion consumer credit scheme in December 2024.
The initiative is designed to make locally assembled electric vehicles, motorcycles, and tricycles more affordable, working with domestic manufacturers such as Innoson, Nord, PAN, Mikano, and other industry players.
While Nigeria has previously explored electric vehicle initiatives—including pilot assembly projects with international partners—those efforts did not progress to full-scale production.
The AEDC-backed project is intended to change that, with plans for comprehensive manufacturing and supporting infrastructure, including nationwide charging networks.
Across Africa, electric vehicle adoption remains relatively low, accounting for less than one percent of total vehicle sales.
However, Nigeria’s partnership with South Korea signals a growing ambition to move beyond vehicle assembly and position the country as a key player in Africa’s emerging clean automotive industry.
