Electric vehicle adoption across Africa is outpacing projections, with Nigeria alone housing approximately 5,000 EVs according to Mosope Olaosebikan, CEO of NEV Electric. This figure challenges earlier forecasts that predicted only 2,200 EV sales for the entire continent by 2027.
Recent data supports this acceleration trend. South Africa’s National Association of Automobile Manufacturers reported 3,042 EVs sold in just the first quarter of 2024. Meanwhile, Spiro claims a fleet of 22,000 electric bikes operating across seven African countries including Ghana and Togo.
Though these numbers pale in comparison to global leaders like the US and China, African EV startups are experiencing remarkable growth. NEV Electric has generated $14 million in revenue over 14 months and projects reaching $50 million within the next 15 months. The company has established itself as Africa’s largest producer of mass transit EV buses, manufacturing 100 units and surpassing BasiGo’s 52.
“At this early stage, it is not about profit but building for the long term. Our focus is on developing the right infrastructure to ensure sustainability,” Olaosebikan states. NEV Electric plans to install 300 charging stations in Lagos and Abuja by August 2025, with 100 already assembled. Their subsidiary, Charging as a Service, builds these stations locally to address range anxiety among potential EV adopters.
The company reinvests earnings into infrastructure development but also relies on external funding. They have secured debt and equity investments, though specific details remain undisclosed for now.
Financing presents significant challenges for both manufacturers and consumers. Olaosebikan notes that current bank interest rates of around 30% hamper competitiveness and increase production costs. For consumers, accessible financing options could accelerate adoption. Some micro EV companies like Max have implemented rent-to-own models, though similar arrangements remain impractical for higher-priced personal EVs.
After two years of EV use in Nigeria, Olaosebikan dispels common misconceptions. His EV offers a 600-kilometer range compared to typical 300-kilometer ranges for conventional SUVs. Derek Ewelukwa, CEO of Jet Motors, confirms EVs can function effectively even with limited charging infrastructure, though expanded networks remain crucial for widespread adoption.
Beyond physical infrastructure, NEV Electric plans significant investment in education and awareness campaigns. They aim to manufacture 2,000 high-capacity EVs and 10,000 micro EVs by the end of 2025, targeting ride-hailing drivers with cost-effective electric alternatives.
Government policies have contributed to the sector’s growth. As a licensed manufacturer, NEV Electric benefits from tax incentives that saved “billions of naira” in import duties. Nigeria exempted EVs and steel imports from VAT in January 2024, supporting the country’s ambitious COP26 goal of deploying 13 million electric vehicles by 2050.
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