Nigeria Formalises Electric Vehicle Manufacturing Plans with South Korea

Nigeria has formalised plans to develop an electric vehicle manufacturing plant through a partnership with South Korea’s Asia Economic Development Committee, setting out a phased approach to local production.

The project will begin with electric vehicle assembly before progressing toward fully integrated manufacturing. At full capacity, the plant is expected to produce up to 300,000 vehicles a year and support around 10,000 jobs, placing it among the most ambitious automotive proposals put forward in the country in recent years.

Structural constraints and import dependence

The investment comes at a time when Nigeria’s automotive sector continues to face deep structural constraints. Local production remains limited, while imports dominate the market. Weak domestic component manufacturing leaves assemblers heavily reliant on imported parts, a dependence that drives up costs across the value chain.

High operating and logistics costs have further eroded the competitiveness of locally assembled vehicles, even under existing automotive policies. As a result, Nigeria remains one of the world’s largest importers of used vehicles, bringing in more than 200,000 units each year, according to official data. This level of import dependence has slowed efforts to build a sustainable domestic manufacturing base and added pressure to foreign exchange reserves.

Demand support and mass transit plans

Alongside the manufacturing push, the government has introduced measures aimed at stimulating demand for locally assembled electric vehicles. Authorities launched a ₦20 billion consumer credit facility to improve access to financing for Nigerian-assembled cars, tricycles, and motorcycles. The scheme is designed to address affordability, which remains one of the main barriers to wider adoption.

Public transport has also been identified as a practical entry point for electric mobility. The federal government has approved a ₦151.9 billion programme to roll out electric mass transit systems in the northeastern region. The initiative seeks to lower fuel costs, reduce emissions, and provide a working test case for electric transport at scale.

The partnership sits within Nigeria’s existing policy framework for vehicle manufacturing and energy transition. Electric mobility features under the National Energy Transition Plan, which links transport electrification to broader energy security and emissions objectives. At the same time, the National Automotive Industry Development Plan continues to shape efforts to expand local vehicle assembly and manufacturing.