Senator Kalu’s Electric Vehicle Transition Bill Scales Second Reading in Senate

• By Kenneth Udeh, Abuja

The Nigerian Senate Wednesday passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, sponsored by Senator Orji Uzor Kalu (Abia North), which seeks to establish a comprehensive national framework for the transition to electric vehicles (EVs), promote local manufacturing, ensure environmental sustainability, and position Nigeria as a leader in clean energy transportation in Africa.

The bill, which was extensively debated on the Senate floor, outlines clear strategies for achieving Nigeria’s transition to electric mobility through local content development, foreign partnership regulations, nationwide charging infrastructure, and a coordinated inter-ministerial framework.

Leading the debate, Senator Kalu said the proposed law is designed to transform Nigeria’s automobile and energy sectors by promoting innovation, local assembly, and environmental protection while creating thousands of jobs across the manufacturing value chain.

“This Bill will help Nigeria move from dependence on fossil fuels toward a cleaner and sustainable energy system. It will ensure that our local industries benefit directly from the emerging global electric vehicle market, create jobs, and reduce emissions in our cities,” Kalu stated.

The Lawmaker added that the Bill provides incentives such as tax holidays, import duty waivers, toll exemptions, subsidies, and road tax exemptions for electric vehicle users and investors, while also mandating the installation of charging points in all fuel stations across the country.

One of the key highlights of the Bill is its emphasis on local content compliance. It mandates that all foreign automakers seeking to operate in Nigeria must enter into partnerships with licensed Nigerian assemblers and establish assembly plants within three years of operation. Furthermore, such companies must attain at least 30 percent local sourcing of components by 2030.

Non-compliance attracts strict penalties, including the suspension of operations and a fine of ₦250 million per violation.

Additionally, any unlicensed dealer involved in the importation or sale of electric vehicles without government authorization would face a ₦500 million fine per shipment, alongside confiscation of goods.

The Bill also prohibits unauthorised research and development partnerships, ensuring that government grants or incentives for electric vehicle innovation are channeled through licensed Nigerian institutions.

“We are creating a system that protects Nigerian industries and ensures that technology transfer and innovation happen locally,” Senator Kalu explained.

The Bill establishes a comprehensive regulatory and institutional structure coordinated by the Federal Ministry of Industry, Trade, and Investment, supported by key agencies including:

Standards Organisation of Nigeria (SON): To develop safety and performance standards for electric vehicles, batteries, and charging equipment;

Federal Ministry of Transportation: To oversee licensing, public transportation integration, and EV infrastructure guidelines;

Federal Ministry of Power: To ensure renewable energy integration into charging systems and develop energy tariffs for EVs;

Federal Inland Revenue Service (FIRS): To administer tax incentives and publish annual reports on fiscal impacts; and

Federal Ministry of Environment: To oversee battery recycling, waste management, and compliance with Nigeria’s environmental obligations under the Paris Agreement.

Senators’ Contributions and Environmental Concerns

During the debate, lawmakers across party lines commended Kalu who equally chairs the Senate Committee on South East Development Commission for the foresight in sponsoring a bill that aligns Nigeria with global technological and environmental trends.

Senator Adamu Aliero (Kebbi Central) stressed the importance of reducing Nigeria’s carbon footprint, especially in heavily industrialized and traffic-congested cities.

“The world is moving forward, and cities like Lagos and Kano are already suffering from high carbon emissions. Electric vehicles will drastically cut down pollution, improve public health, and create a new industrial ecosystem for Nigeria.

“Instead of exporting lithium, we should process and utilize it here at home to create jobs and diversify our economy,” Aliero said.

Senator Osita Ngwu (Enugu West) emphasized that the transition to electric vehicles would also help Nigeria address the long-term dangers of climate change.

“Climate change is already affecting our communities and agricultural productivity. Embracing clean mobility is part of our national responsibility to future generations,” he stated.

In the same vein, Senator Titus Zam argued that Nigeria could no longer afford to lag behind as many nations across the world had adopted electric vehicle policies.

“From Europe to Asia and even several African countries, the electric vehicle revolution has already taken shape. Nigeria must not be left behind if we hope to remain competitive and relevant,” Zam said.

Economic Growth and Industrial Diversification

Beyond the environmental benefits, the Electric Vehicle Transition and Green Mobility Bill seeks to unlock new economic opportunities by expanding local production capacity and deepening Nigeria’s participation in the global EV value chain.

Clause 3 of the Bill mandates that any Nigerian company seeking to assemble electric vehicles must demonstrate a minimum annual production capacity of 5,000 units, compliance with international safety standards, and proof of financial and technical capacity to sustain operations.

The Bill also provides that private investors setting up charging stations will be eligible for government grants and tax credits, while all fuel stations will be required to install charging points to ensure seamless adoption nationwide.

“Our goal is to make Nigeria the hub of electric vehicle manufacturing in Africa, create jobs for our youth, and support our transition toward renewable energy,” Kalu reiterated.

After extensive debate, the Bill was put to a voice vote and passed for second reading, with Senate President Godswill Akpabio presiding.

Akpabio commended Senator Kalu for his vision and described the Bill as a forward-looking legislative initiative that aligns with President Bola Tinubu’s economic diversification agenda and global energy transition trends.

“This Bill represents an important step toward sustainable industrial growth and environmental responsibility. Nigeria must prepare for the future of transportation and energy,” Akpabio said.

The Bill was subsequently referred to the Senate Committee on Industry for further legislative scrutiny and is expected to report back to the chamber within four weeks.