The Electric Vehicle Transition and Green Mobility Bill, 2025, has been lauded by some automotive sector chieftains since it came up for second reading on Wednesday, November 5th, 2025.

The proposed legislation, introduced by Dr. Orji Uzor Kalu, the Senator representing Abia North, seeks to establish a national framework for the transition to electric vehicles, encourage local manufacturing, and strengthen Nigeria’s commitment to environmental sustainability.

When the proposed legislation had its second reading, lawmakers overwhelmingly supported it,  describing it as a necessary step to diversify the economy and align with global clean energy trends.

Senator Kalu had informed the senate that the legislation aims to transform Nigeria’s automotive and energy sectors, foster innovation, and create jobs throughout the manufacturing value chain.

Key highlights of the bill include: tax holidays, import duty waivers, toll exemptions, and subsidies for  electric vehicle users and investors; and making it mandatory for all fuel stations to install charging points

The bill further requires foreign automakers seeking to sell electric vehicles in Nigeria to partner with licensed local assemblers and establish domestic assembly plants within three years.

It also aims to compel companies to source at least 30 percent of their components locally by 2030, while violations could attract fines of up to N250 million per breach, even as unlicensed importers risk penalties of N500 million and confiscation of goods.

The legislation, which is expected to  position Nigeria as a potential hub for electric vehicles production in Africa, would incentivise investors who establish charging infrastructure by availing them with government grants and tax credits.

These automotive industry chieftains believe the proposed law is capable of improving the domestic automotive industry, particularly if it is assiduously implemented.

Commenting on the fine points of the proposed law, the Director General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin said, “We at the NADDC have said it time and time again, that the future of mobility is in electric vehicles, and it is commendable when your legislators see it the way it is.

“And they have also shown that they are aware that we in Nigeria don’t have to sit back and allow the whole world to move far away and leave us behind, only for us to complain later.

“It will not be good to do nothing now and start complaining later. It is always good that whenever we want to take action, we don’t take action based on policy alone, but also back whatever we are doing with law.

“The (Electric Vehicle Transition) bill in the Senate shows that our society is responsible. It shows that our government is responsible. It shows that all of us are responsible, and it is also good to note that the sponsor of this bill, Senator Orji Uzor Kalu, is a  member of the Senate committee on Industry that has oversight on NADDC, and he understands the issues involved.“The Senate Committee on Industry is one of the committees where you have many legislators who have held the executive position in their various states. So, Senator Orji Kalu understands what it takes to grow this industry.”

Osanipin said though he had not seen the details of the bill, it was clear to him from what he had read so far  that it is all about the development of the auto industry, and about “putting in place the necessary infrastructures, and the necessary support that are going to drive this industry.”

He said many countries have set target dates to end the production and sale of new petrol and diesel vehicles in their efforts to fully transition to electric vehicles and reduce carbon emissions. 

“In some countries like China, for example, they have already set a target to stop the manufacture and use of petrol and diesel vehicles, and before that deadline, their people are free to register their vehicles just the way you do your licence every year here.

“But, after that time which I think is in the next eight years or so, you cannot get a licence for your vehicle again if the vehicle is not EV.”

“With various developed economies, including European countries, setting targets of between 2030 and 2040 to completely phase out the manufacture and use of fossil-fuel vehicles.

“We are pushing to get to a point that by 2035, the adoption rate of electric vehicles (in Nigeria) will be much higher,” Osanipin said.

He said, “We also have to develop and prepare, because if we are not looking at taking action today, those vehicles they can no longer register in China and other countries, what do you think will happen to them? Your guess is as good as mine.”

NADDC, he said, would be willing to give any kind of support needed to ensure the bill is passed into law and vigorously implemented.  “We are ready to honour their invitation, if they call us to give support. If they need any questions, if they need any information, we are always available. We are happy that our legislature is taking this to the next level.

“It is always good when you have people that are ready to give you legislative backing. We are ready to work with the National Assembly. If they call us for a presentation, we’ll be there. We are ready to work with them.”

The National Coordinator, Automotive Local Content Manufacturers Association of Nigeria (ALCMAN), Chief Anselm Ilekuba, described the proposed law as a welcome development, considering their efforts to manufacture auto parts for vehicle production in the country and to drive the domestic auto industry towards developing the electric vehicle technology.

Also, his company, Cedric Masters Group assembles JIM-ISUZU, a brand of electric vehicles in Lagos.

He also lauded the promoter of the bill, Senator Kalu, particularly for the potential help the law would be for investors in the EV sector.

He presented his EV lineup, stating that “Apart from the rugged 2.4 litre JIM ISUZU Re-Max 4×4 pick-up which has already started making a mark in the market as a reliable work horse, Cedric Masters is also ushering into the Nigerian market the Leapmotor brand known for its affordable and tech-focused new energy vehicles (NEVs).”

He said the company is also introducing into the local market the Voyah brand of luxury electric vehicles.  “Our subsidiary, Cedric Clean Energy Solution, which has an electric charge station assembly plant in Lekki, Lagos State, sees this as a wonderful development and calls for greater stakeholder involvement, especially with NADDC and ALCMAN.

“I commend Senator Orji Uzor Kalu for this laudable bill which shows vision and will serve as a cursor to the long-awaited Nigerian Automotive Industry Development Programme.”

The Chairman, Innoson Vehicle Manufacturing Company Ltd (IVM), Dr. Innocent Chukwuma, CON, said the eventual outcome of the bill would tie in with some of the aims of the Nigerian Auto Policy (Nigerian Automotive Industry Development Programme, NAIDP).

Chief Chukwuma, who is building a completely new multibillion naira auto plant in Nnewi, which was conceived to manufacture only EVs and other vehicles that run on Compressed Natural Gas, suggested that the bill should be made to also accommodate the deepening of CNG utilisation.

He said Nigeria has abundant gas, adding that users of CNG-powered vehicles enjoy tremendous advantages, including cheaper cost per kilometre, and considerably low maintenance expenses.

Chief Chukwuma said the proposed bill is part of President Bola Tinubu’s green mobility strategy which seeks to promote the use of Compressed Natural Gas and electric vehicles.