Nigeria has taken a decisive step toward reshaping Africa’s automotive future following the signing of a landmark Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish Africa’s first large-scale electric vehicle (EV) manufacturing plant.
The agreement, signed on January 30, 2026, marks a strategic shift away from Nigeria’s long-standing dependence on imported internal combustion engine vehicles and positions the country as a potential hub for green automotive technology on the continent. If executed as planned, the project could redefine how vehicles are built, powered, and adopted across Africa.
A phased path to local EV manufacturing
Rather than a one-off factory launch, the EV project is structured as a phased industrialisation programme, designed to balance speed, sustainability, and technology transfer.
The first phase will focus on assembling electric vehicles using imported components, allowing Nigeria to enter the EV market quickly while building local operational capacity. The second phase will deepen localisation, transitioning into full-scale manufacturing, with increasing domestic production of vehicle components and batteries.
Once fully operational, the facility is expected to produce up to 300,000 electric vehicles annually. Beyond manufacturing output, the project is projected to create approximately 10,000 direct and indirect jobs, spanning assembly, logistics, engineering, and the broader automotive value chain.
Powering Nigeria’s green transition
Nigeria’s Minister of State for Industry, Trade, and Investment, Senator John Owan-Enoh, described the partnership as a clear signal of the government’s commitment to implementing the country’s newly approved National Industrial Policy.
According to the minister, the initiative goes beyond vehicle production. It represents a deliberate attempt to reposition Nigeria from a passive consumer of global automotive innovation to an active producer within the fast-growing EV ecosystem.
Crucially, the agreement also includes plans to develop EV charging infrastructure nationwide, tackling one of the biggest barriers to EV adoption in Africa: limited charging options and concerns around vehicle range.
Policy alignment and economic logic
The EV manufacturing initiative aligns closely with two major national frameworks. Nigeria’s Energy Transition Plan targets net-zero emissions by 2060, while the National Automotive Industry Development Plan seeks to reduce the country’s heavy reliance on vehicle imports by encouraging local production.
Nigeria currently imports over 700,000 used vehicles annually, resulting in significant capital outflows. Local EV manufacturing offers a pathway to reverse this trend while fostering a domestic ecosystem of engineers, technicians, and clean-energy innovators.
Challenges still to solve
Despite the optimism, execution will be critical. Reliable power supply remains essential for both manufacturing operations and EV charging infrastructure. In addition, building a strong local supply chain will determine whether Nigeria successfully moves from basic assembly to true manufacturing depth.
That said, South Korea’s advanced automotive expertise provides Nigeria with a strong technical and investment foundation to tackle these challenges.
Why this matters
As global mobility shifts toward sustainability, Nigeria’s ambition to host Africa’s first full-scale EV factory could set a powerful precedent. With a large domestic market and a growing middle class, locally made electric vehicles could soon move from concept to common sight—on Nigerian roads and beyond.
