BY CAROLINE AMEH

ABUJA — The Senate has passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025, sponsored by Senator Orji Uzor Kalu (Abia North).

The proposed law seeks to establish a national framework for Nigeria’s transition from fossil fuel-powered automobiles to electric vehicles, promote local manufacturing, attract foreign investment, and position the country as a leader in clean energy transportation on the continent.

Leading debate on the Bill during plenary on Wednesday, Senator Kalu said the initiative would transform the automobile and energy sectors by fostering innovation, creating jobs, and advancing environmental protection.

He said the Bill would help Nigeria move away from dependence on fossil fuels towards a cleaner, more sustainable energy system, ensure that local industries benefit directly from the global electric vehicle market, and reduce emissions in urban areas.

The Bill provides incentives such as tax holidays, import duty waivers, toll exemptions, and road tax reliefs for users and investors in electric vehicles. 

It also mandates the installation of charging points in all fuel stations across the country.

A key provision requires foreign automakers operating in Nigeria to partner with licensed local assemblers and establish assembly plants within three years of operation. 

By 2030, such firms must source at least 30 percent of components locally or face penalties, including suspension of operations and fines of ₦250 million per violation.

Unlicensed importers or dealers of electric vehicles will face fines of ₦500 million per shipment and confiscation of goods, while unauthorized research partnerships will be prohibited to ensure government incentives for innovation benefit accredited Nigerian institutions.

Kalu said the Bill was designed to protect local industries and ensure that technology transfer and innovation occur within the country.

The framework for implementation will be coordinated by the Federal Ministry of Industry, Trade, and Investment, with the support of relevant agencies, including those responsible for standards, transportation, power, taxation, and environmental regulation.

Senator Adamu Aliero (Kebbi Central) commended the Bill, describing it as a pathway to reducing Nigeria’s carbon footprint and industrial pollution, particularly in major cities. He said instead of exporting lithium, Nigeria should process and use it locally to diversify the economy.

Senator Osita Ngwu (Enugu West) said the transition to electric vehicles would help Nigeria address the impact of climate change on communities and agriculture, while Senator Titus Zam urged its speedy passage, noting that many countries have already advanced in electric mobility.

Under the Bill, local firms seeking to assemble electric vehicles must have a minimum annual production capacity of 5,000 units and meet international safety and financial standards. Investors in charging infrastructure will also qualify for government grants and tax credits.

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

Presiding over the session, Senate President Godswill Akpabio commended Kalu for the initiative, describing it as a bold step toward sustainable industrial growth and environmental responsibility.

The Bill was referred to the Senate Committee on Industry for further legislative work and is expected to return for consideration within four weeks.