Nigeria has signed an agreement with South Korea’s Asia Economic Development Committee (AEDC) to establish what officials describe as Africa’s first large-scale electric vehicle (EV) manufacturing plant, marking a significant step in the country’s push to build a domestic EV industry and accelerate green technology adoption. The agreement was signed on January 30 by Nigeria’s Minister of State for Industry, Senator John Enoh, and AEDC Chairman Yoon Suk-hun, underscoring Abuja’s strategy to localise vehicle production and reduce dependence on imports while aligning with global energy transition goals.
According to a statement posted on the official X account of the National Automotive Design and Development Council (NADDC), the partnership represents a major policy milestone for the country’s automotive sector.
“On January 30, 2026, the Federal Government of Nigeria, through Senator John Enoh, Hon. Minister of State for Industry at the Federal Ministry of Industry, Trade and Investment (FMITI), signed a Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish an Electric Vehicle (EV) manufacturing plant and develop critical charging infrastructure nationwide. This landmark collaboration aligns strongly with Nigeria’s National Energy Transition Plan (ETP) and National Automotive Industry Development Plan (NAIDP).”
The project will be implemented in phases, beginning with vehicle assembly before expanding into full in-house manufacturing, a structure designed to gradually build local capacity and supply chains.
Once fully operational, the plant is projected to produce up to 300,000 vehicles annually and create about 10,000 direct jobs, according to the NADDC, positioning Nigeria as a potential hub for EV production in Africa.
The agreement comes as Nigeria’s automotive industry continues to grapple with structural challenges, including limited local component manufacturing, high assembly costs, and heavy reliance on imported vehicles.
Nigeria imports between 400,000 and 720,000 vehicles each year, with used cars accounting for between 74 and 90 percent of the total, while imports reached about 700,000 units in 2023 and passenger vehicle imports were valued at $1.05 billion in 2024.
To stimulate demand for locally assembled EVs, the federal government launched a ₦20 billion consumer credit programme in December 2024 to support purchases of electric vehicles, motorcycles, and tricycles, in partnership with manufacturers such as Innoson, Nord, PAN, Mikano, and others.
Earlier EV initiatives in Nigeria, including collaborations with Israeli, Japanese, and Chinese partners, were largely pilot or partial assembly projects, but the AEDC-backed facility is designed as a full-scale production plant with supporting infrastructure such as nationwide charging networks.
Against a continental backdrop where EV adoption remains below one percent of total vehicle sales, Nigeria’s deal with South Korea signals an ambition to move beyond assembly toward a sustainable, large-scale domestic EV industry capable of reshaping Africa’s automotive landscape.
