Africa’s first electric vehicle factory is set to rise in Nigeria following a historic agreement with South Korea’s Asia Economic Development Committee (AEDC). The deal, signed on January 30, 2026, marks a major step in localising vehicle production and advancing green technology adoption across the continent.
Minister of State for Industry, Senator John Enoh, signed the MoU on behalf of Nigeria, while AEDC Chairman Yoon Suk-hun represented South Korea. The partnership will not only establish the EV manufacturing plant but also support the development of critical nationwide charging infrastructure.
The project will be implemented in phases, starting with assembly and eventually expanding to full-scale production. Once operational, the facility is expected to produce 300,000 vehicles per year and create around 10,000 jobs, boosting Nigeria’s industrial capacity and employment.
Nigeria’s automotive sector has long relied on imports, bringing in between 400,000 and 720,000 vehicles annually, with 74–90% being used cars. In 2023, imports reached 700,000 units, worth over $1 billion in 2024 alone. The AEDC-backed plant aims to shift this dynamic by promoting local assembly, manufacturing, and supporting EV infrastructure.
To encourage adoption, the federal government launched a 20 billion naira ($12 million) consumer credit program in December 2024. The initiative enables Nigerians to purchase locally assembled electric cars, motorcycles, and tricycles, partnering with domestic firms including Innoson, Nord, CIG, PAN, Mikano, Jets, NEV (Electric), and DAG.
Previous EV efforts, such as the NASENI–Israeli/Japanese pilot in 2022 and the 2025 Chinese partnership, focused on partial assembly and fell short of full-scale production. This new facility aims to be Africa’s first large-scale EV hub, combining manufacturing, assembly, and supporting infrastructure like charging networks.
EV adoption across Africa remains low, with just over 30,000 EVs in use by mid-2025. Nigeria’s move to build Africa’s first electric vehicle factory signals its ambition to leapfrog partial assembly efforts and establish a sustainable domestic EV industry.
