Innoson Vehicle Manufacturing Company (IVM) has launched its first locally produced electric vehicle (EV), marking a significant milestone for the Nigerian automotive industry. Cornel Osigwe, IVM’s Head of Communications and Corporate Affairs, announced the development in a Facebook post, revealing that the vehicle was manufactured at the company’s production facility in Nnewi, Anambra State. “I just test-drove the first Innoson Electric vehicle produced in Nnewi. We are just starting,” Osigwe said.
This marks IVM’s initial foray into electric vehicle production. However, the company has yet to release specific details regarding the pricing, production volume, or timeline for the commercial rollout of its EVs.
Electric vehicles are seen as key to decarbonizing the transportation sector, which accounts for over 15% of global energy-related emissions, according to the International Energy Agency (IEA). Globally, EV sales have surged due to improvements in range, variety, and performance, with an estimated 18% of new cars sold in 2023 being electric.
However, challenges persist in emerging markets like Nigeria, where the adoption of EVs has been slower due to higher upfront costs and limited charging infrastructure. Despite these hurdles, the recent deregulation of Nigeria’s downstream petroleum sector, which led to a rise in petrol prices, could create an opportunity for the growth of the EV market if charging costs prove to be more economical than refueling traditional petrol vehicles.
Nigeria’s EV Journey
In 2021, Nigeria made its first strides in the EV space with the local assembly of the Hyundai Kona by Stallion Motors. This followed a pilot program initiated by the National Automotive Industry Design and Development Council (NADDC) and its partners to establish 100 solar-powered EV charging stations across the country. The Hyundai Kona’s debut opened doors for further developments in Nigeria’s automotive sector as the global shift toward reducing emissions continues.
Power Infrastructure Challenges
Despite these advancements, Nigeria faces significant hurdles in its EV adoption, particularly in its power generation capabilities. The country generates only 5,000 megawatts of electricity, far below its 40-terawatt demand, leaving many households and industries without reliable power. The World Economic Forum (WEF) highlights Nigeria as one of the most energy-poor nations globally, with only 25% of rural populations having access to electricity. High electricity costs, averaging $0.52 per kilowatt-hour, have forced many Nigerians to rely on backup generators to meet 40% of their electricity needs.
These challenges underline the significant infrastructure investments needed to support widespread EV adoption in Nigeria, even as the nation takes its first steps into the electric vehicle market.
