In a move set to redefine the continent's industrial landscape, the Federal Government of Nigeria officially signed a landmark Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish Africa’s first large-scale electric vehicle (EV) manufacturing plant.
The agreement, signed on January 30, 2026, and highlighted by government officials today, signals a bold departure from Nigeria's traditional reliance on imported internal combustion engine (ICE) vehicles. The project aims to position Nigeria as the premier hub for green automotive technology in Africa.
A Phased Strategy for Industrialization
The project is designed to roll out in distinct phases to ensure sustainable growth and effective technology transfer.
Phase One: Focuses on the assembly of electric vehicles using imported components to establish a foothold in the market.
Phase Two: Transitions into full-scale, integrated manufacturing, where vehicle parts and batteries will increasingly be produced within Nigeria.
Once the facility is fully operational, it is projected to have an annual production capacity of 300,000 electric vehicles. Beyond the environmental benefits, the project is expected to be a massive engine for economic growth, creating an estimated 10,000 direct and indirect jobs across the automotive value chain.
Fueling the Green Transition
The Minister of State for Industry, Trade, and Investment, Senator John Owan-Enoh, who signed the deal on behalf of Nigeria, described the partnership as a "clear expression of resolve" to implement the country’s newly approved National Industrial Policy.
"This is more than just a factory; it is about building the industries of the future," Enoh stated. "We are moving from being passive observers of the global EV revolution to becoming active participants."
The agreement also includes the development of nationwide EV charging infrastructure, addressing one of the primary hurdles to EV adoption in Africa: "range anxiety" and the lack of reliable power for vehicle charging.
Economic and Policy Alignment
The deal aligns with two of Nigeria’s most critical strategic frameworks:
National Energy Transition Plan (ETP): Which targets net-zero emissions by 2060.
National Automotive Industry Development Plan (NAIDP): Which incentivizes local manufacturing to reduce the billions spent annually on vehicle imports.
Currently, Nigeria is one of the world's largest importers of used vehicles, bringing in over 700,000 units annually. By pivoting to domestic EV production, the government hopes to curb this capital flight while fostering a local ecosystem of skilled engineers and innovators.
Challenges and the Road Ahead
While the announcement has been met with widespread optimism, industry analysts suggest that the project’s long-term success will hinge on addressing Nigeria's persistent infrastructure challenges.
Power Supply: A consistent national grid is essential for both manufacturing and the proposed nationwide charging network.
Local Supply Chain: Developing a robust network of local component manufacturers will be vital to moving from "assembly" to "manufacturing."
Despite these hurdles, the partnership with South Korea, a global leader in automotive technology, provides Nigeria with the technical expertise and investment capital needed to take this ambitious leap.
Looking Forward
As the world shifts toward sustainable mobility, Nigeria’s move to host Africa's first full-scale EV factory could set a precedent for other nations on the continent. With a massive domestic market and a growing middle class, the "Made in Nigeria" electric vehicle may soon become a common sight on African roads.