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Économie/MacroéconomieArticle

Nigeria’s EV push stalls amid chronic power shortages

Weak electricity infrastructure threatens to derail Africa’s largest economy’s electric vehicle ambitions despite government incentives.

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Elena Kovač · Central Banks Desk · 15 Aug 2026 · 2 min de lecture
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Nigeria’s EV push stalls amid chronic power shortages

Nigeria’s plan to transition to electric vehicles faces a critical hurdle: an unreliable power grid that has long plagued the country’s infrastructure.

The West African nation, Africa’s largest economy, has outlined ambitious targets to phase out petrol and diesel cars by 2060, aligning with global climate goals. However, persistent electricity shortages—exacerbated by aging power plants, fuel supply disruptions, and transmission bottlenecks—risk undermining these efforts.

Analysts warn that without significant upgrades to the national grid, the adoption of EVs will remain limited. Current generation capacity hovers around 4,000 megawatts, far below the estimated 30,000 MW needed to meet demand, including industrial and residential needs. Frequent blackouts and voltage fluctuations have already deterred private investment in EV charging infrastructure, with most charging stations concentrated in major cities like Lagos and Abuja.

The government has introduced incentives, including tax breaks and import duty waivers for EV manufacturers, to stimulate growth. In 2023, it approved a national EV policy aimed at reducing carbon emissions and fuel import bills. Yet, the lack of reliable electricity remains a structural barrier, forcing potential buyers to rely on generators or solar power for charging.

Industry stakeholders argue that addressing power supply must take precedence over subsidies. "The grid needs to be fixed first before we can talk about mass EV adoption," said a Lagos-based energy consultant. "Otherwise, we’re just shifting the problem from fuel dependency to electricity dependency without solving either."

The challenge extends beyond infrastructure. Nigeria’s forex crisis and high interest rates have also inflated the cost of imported EV components, further complicating the transition. While countries like Kenya and South Africa have made strides in EV adoption, Nigeria’s progress remains stymied by its energy woes.

For now, the country’s EV market remains nascent, with fewer than 10,000 registered electric vehicles nationwide—most of which are used imports. Without a robust power supply, analysts say the 2060 target is increasingly unrealistic.

Cet article a été produit avec l'assistance de l'IA et édité par un journaliste de Finance Review Daily.
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Elena Kovač
Central Banks Desk

Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.

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