Thabo Nkosi 
Nigeria’s new electric vehicle (EV) import rules, effective in 2025, focus on reducing costs for EV buyers, encouraging local production, and aligning with global environmental standards. Here’s what you need to know:
- EV Import Benefits: Import duties on EVs are now between 10-20%, with exemptions from VAT and Import Adjustment Tax, making EVs cheaper to import.
- Age Limit for Imported Vehicles: Only vehicles manufactured from 2015 onward are allowed.
- Local Production Mandates: Foreign automakers must partner with Nigerian assemblers and set up local assembly plants within three years.
- Government Goals: By 2033, 30% of vehicles sold in Nigeria must be locally manufactured EVs. By 2040, all new cars and vans sold must be zero-emission.
- Market Growth: Nigeria’s EV market is projected to grow from $58M in 2024 to $230M by 2030. EV registrations have surged by 143% in 18 months.
Navigating these rules involves proper documentation, compliance with customs processes, and leveraging government incentives. Dealers face additional requirements, such as establishing assembly plants and meeting local content quotas. While challenges like high EV costs and limited charging infrastructure remain, the market offers opportunities for growth, especially with government-backed incentives and increasing EV adoption.
Nigeria Adopts Electric Cars in Every Sector With These Policies And Improvements
Main Components of Nigeria’s 2025 EV Import Rules
Nigeria’s 2025 regulations for electric vehicle (EV) imports lay out specific guidelines for what vehicles are allowed into the country and set expectations for manufacturers. These rules impact both individual buyers and the automotive industry at large.
Which Vehicles Can Be Imported
To align with global environmental and safety standards, Nigeria Customs enforces a strict 10-year age limit on imported vehicles, meaning only those manufactured in 2015 or later are permitted. Older vehicles face either outright bans or steep penalties.
For EVs, the rules are more favorable. Vehicles with engines of 2,000cc or smaller are exempt from adjustment taxes, and as of January 2024, import duties on EVs have been eliminated. Currently, EVs make up just 0.5% to 1% of all vehicles in Nigeria, totaling around 15,000 to 20,000 units.
These import criteria set the stage for local production requirements, which are central to Nigeria’s broader EV strategy.
Local Assembly Plant Requirements
Foreign automakers looking to operate in Nigeria must partner with licensed local assemblers to import, sell, or distribute EVs. Within three years of starting operations, these companies are required to establish local assembly plants and ensure that at least 30% of their components are locally sourced by 2030. Failure to meet these requirements could lead to fines exceeding ₦1 million (around $1,250) or even suspension of operations.
In May 2025, the National Automotive Design and Development Council (NADDC) applauded SAGLEV Electromobility Nigeria Limited for opening the first fully electric vehicle assembly plant in sub-Saharan Africa. NADDC Director General Oluwemimo Joseph highlighted that the plant adheres to international standards and can assemble a range of EVs, including buses.
These initiatives are key to advancing Nigeria’s EV production and adoption goals.
Nigeria’s EV Adoption Targets
The Nigerian government aims for 30% of all vehicles to be locally produced EVs by 2032. To achieve this, the regulations combine financial incentives with local assembly mandates. For consumers, this could mean more EV options and potentially lower prices as domestic production ramps up. For businesses, it presents both challenges – meeting local content requirements – and opportunities in a rapidly expanding market. These targets also align with Nigeria’s broader zero-emission objectives, reinforcing its commitment to sustainable transportation.
How to Comply with EV Import Rules
Navigating Nigeria’s electric vehicle (EV) import rules involves several steps that require precision and attention to detail. From preparing the right documents to navigating customs procedures, staying organized and meeting deadlines can help avoid unnecessary delays or penalties.
Documents Needed for Import
Proper documentation is the backbone of a smooth customs clearance process. To start, you’ll need business registration and a tax ID, which establish your legal authority to import goods. Additionally, a vehicle inspection certificate – issued either by Chinese authorities or a third-party inspector – proves that the EV meets safety standards.
Other essential documents include the final invoice, certificate of origin and pricing, and a packing list to provide customs with accurate shipment details. The Ocean Bill of Lading acts as proof of shipment, while a marine insurance certificate offers protection against transit risks.
For regulated items like EVs, obtaining a Product Certificate (PC) from the appropriate regulatory body is mandatory. This certificate must be activated on Nigeria’s online single window system before moving forward. Additionally, the SONCAP Certificate – which requires both a Product Certificate and a Shipment Certificate – is necessary for customs clearance.
Authorized Dealer Banks also require documents like the Insurance Certificate and Proforma Invoice, along with the Product Certificate, to process regulated imports. Ensuring all paperwork is accurate and consistent is crucial to avoid customs delays or complications.
Once all documents are in order, the next step is to navigate the customs process.
Customs Process and Tax Requirements
Nigeria’s customs clearance system operates digitally through the Single Window platform. To begin, you need to open a Form M on the Nigerian Trade Platform. Attach all required documentation and submit it to an Authorized Dealer Bank (ADB) for review and validation. The ADB will then forward the approved Form M to the Nigeria Customs Service.
After the Form M is approved, you’ll need to activate your SONCAP Certificate and apply for a Pre-Arrival Assessment Report (PAAR) through the Single Window system. This report is critical for calculating your final duty payments.
To clear customs, the EV must meet Euro II emission standards and secure mandatory SONCAP approval. EVs benefit from tax breaks compared to traditional vehicles. While you’ll pay a National Automotive Council (NAC) Levy of 15% and Import Duty between 10% and 20%, EVs are exempt from both the Import Adjustment Tax and Value Added Tax.
"With the increasing volume of global trade, expanding global value chains, and the rise of e-commerce and Just-In-Time services, it has become imperative for Customs administrations to adopt mechanisms that support the seamless flow of legitimate trade." – Adewale Adeniyi, Comptroller General of Customs
Shipping from China typically takes 30-45 days. Ocean freight costs approximately $600 per container, while local inland transport and port handling add another $1,000 per container.
Additional Requirements for Dealers
Dealers face additional obligations beyond individual imports. They are required to partner with licensed local assemblers and establish local assembly plants within three years. Failing to meet this requirement could result in fines exceeding ₦1 million (around $1,250) or a suspension of operations.
Dealers should also validate VIN valuations early to estimate clearing costs accurately. Collaborating with reliable exporters and clearing agents who are familiar with the latest regulations can help avoid costly mistakes.
Partnering with an experienced freight forwarder is another way to ensure smooth and cost-effective delivery while navigating the complex regulatory environment.
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Costs and Financial Benefits of EV Imports
Nigeria’s 2025 EV regulations bring a fresh wave of cost savings and opportunities for both buyers and dealers. By significantly lowering tariffs on electric vehicles compared to traditional combustion engine cars, these rules open up new financial advantages, as outlined below.
Import Duties and Tax Breakdown
The 2025 framework marks a major shift in Nigeria’s import policies, slashing tariffs on electric vehicles. Previously, fully built cars faced a hefty 70% combined tariff – 35% import duty and an additional 35% levy. Now, EVs enjoy a much lighter tax burden.
Under the updated guidelines, EV import duties range from 10% to 20%, depending on the type of vehicle, with a 15% National Automotive Council (NAC) levy added. On top of this, electric vehicles are exempt from both Value Added Tax (VAT) and the Import Adjustment Tax (IAT). For example, consider an EV priced at $7,500 with an exchange rate of ₦1,500 per dollar. While traditional vehicles would incur the full suite of taxes, EV buyers benefit from these exemptions, resulting in substantial cost reductions.
| Tax/Duty Component | Standard Rate | EV Status |
|---|---|---|
| Import Duty | 10-20% | Applied |
| NAC Levy | 15% | Applied |
| Value Added Tax | 7.5% | Exempt |
| Import Adjustment Tax | Variable | Exempt |
| ECOWAS Trade Levy | 0.5% | Applied |
Government Incentives Available
Beyond lower tariffs, Nigeria’s government has introduced additional incentives to encourage EV adoption. Starting in January 2024, duty exemptions were extended to electric vehicles and steel imports, reflecting the government’s long-term goals for green mobility. The Electric Vehicle Transition and Green Mobility Bill, set for 2025, further supports this effort by offering reduced import duties and tax breaks to companies investing in local EV production.
The National Automotive Design and Development Council (NADDC) has also set an ambitious target: by 2033, 30% of all vehicles sold in Nigeria should be locally manufactured EVs. This vision is already taking shape. In 2024, the Lagos State Government made a $260 million investment to expand its LagRide fleet, adding 1,000 electric vehicles in partnership with CIG Motors.
Real Cost Examples for Buyers
Nigeria’s vehicle market is expanding rapidly, with new vehicle sales rising 18.9% in 2023 to reach 13,304 units. Buyers on platforms like EV24.africa can take advantage of VAT and IAT exemptions, which translate into significant savings compared to traditional vehicles. With an average effective tariff rate of 9.37% and predictable shipping timelines of 30–45 days from China, purchasing EVs has become more accessible and affordable.
The combination of low market penetration and government-backed incentives creates a promising environment for growth, especially for early adopters. To make the most of these benefits, buyers should confirm Vehicle Identification Number (VIN) valuations early, estimate clearing costs accurately, and work with freight forwarders who understand the latest regulations. This approach ensures a smoother and more cost-effective buying experience.
Problems and Opportunities in Nigeria’s EV Market
Nigeria’s electric vehicle (EV) market is a mix of challenges and opportunities. While the 2025 import rules set the stage for growth, several hurdles must be overcome to fully unlock the market’s potential.
Main Challenges for Buyers and Dealers
One of the biggest barriers to EV adoption in Nigeria is the steep price difference between electric and traditional vehicles. New EVs are priced between ₦12 million and ₦28 million, whereas petrol-powered cars typically cost ₦6 million to ₦15 million. For many buyers, this upfront cost is a significant deterrent, even though EVs offer lower long-term operating expenses.
Another major issue is the lack of charging infrastructure. The slow development of charging stations has led to widespread "range anxiety", discouraging potential buyers who fear running out of power without access to a nearby charging point.
Adding to these challenges is the shortage of skilled technicians trained in EV maintenance. From basic upkeep to advanced battery diagnostics, the technical expertise required to service EVs is still in short supply, creating uncertainty for both buyers and sellers.
Finally, navigating import procedures and meeting compliance requirements can be daunting, particularly for new market entrants. These complexities highlight the need for better support systems to ease the transition into the EV market.
Market Opportunities Available
Despite these obstacles, Nigeria’s EV market is poised for growth. In 2024, the market was valued at $58 million, with projections reaching $230 million by 2030. In local terms, the sector is expected to surpass ₦1.6 trillion by the same year.
Government initiatives are a key driver of this growth. Nigeria has committed to achieving 100% zero-emission sales for all new cars and vans by 2040. Additionally, the National Automotive Design and Development Council (NADDC) aims for locally manufactured EVs to account for 30% of all vehicle sales by 2033. These goals are supported by incentives and local assembly requirements that encourage investment in the sector.
Infrastructure development is also gaining momentum. NEV Electric plans to install 300 charging stations across Abuja and Lagos by August 2025, while also producing 2,000 high-capacity EVs and 10,000 micro EVs by the end of the year. The Energy Commission of Nigeria (ECN) has even launched a 5-kilowatt solar-powered hybrid charging station in Abuja, capable of charging four vehicles simultaneously.
Cost savings are another compelling factor. Charging a 60 kWh EV battery costs around ₦10,000, compared to ₦50,000–₦75,000 for fueling an equivalent petrol car. Daily operating costs are also lower, with EVs costing ₦48–₦60 per 100 km, compared to ₦150–₦200 for petrol.
The supply chain offers additional opportunities. Small and medium-sized enterprises (SMEs) can tap into the growing demand for EV components, batteries, and charging solutions.
How to Succeed in This Market
To thrive in Nigeria’s EV market, buyers and dealers need to strategically address these challenges while seizing the opportunities available. For buyers, focusing on newer EV models (2016 and later) can help avoid higher import duties. Opting for vehicles with high ground clearance, extended battery ranges, and established local service networks is also advisable. Leveraging government incentives like tax credits and subsidies can further ease the financial burden.
Dealers, on the other hand, should prioritize building robust support systems. Collaborating with experienced freight forwarders and consultants can simplify regulatory compliance and ensure smooth delivery, with shipping costs averaging $1,600 per container. Long-term success will require investments in workforce development to train technicians and operators, as well as partnerships with financial institutions to offer flexible lease financing options. Providing portable charging kits or solar-inverter-enabled solutions can help bridge infrastructure gaps and enhance customer confidence.
Online platforms like EV24.africa are becoming essential for vehicle sales, marketing, and after-sales services. These platforms provide transparent pricing, detailed specifications, and financing options, making it easier for buyers and dealers to navigate the market.
Staying updated on regulatory changes is crucial. As Nigeria’s EV landscape evolves, market participants must adapt quickly to new policies and incentives while ensuring compliance with existing rules.
Summary: Working with Nigeria’s 2025 EV Import Rules
Navigating Nigeria’s 2025 EV import rules requires strict adherence to regulations, smart financial strategies, and a well-thought-out market approach. These rules favor newer vehicles and present opportunities for those who understand the system.
The foundation of market entry lies in compliance. The Nigeria Customs Service now only permits vehicles manufactured in 2015 or later, with electric vehicles requiring SONCAP approval. To avoid shipment delays, ensure all necessary import documents – such as business registration and SONCAP approval – are complete and accurate. Once compliance is secured, the focus shifts to managing costs and taking advantage of financial incentives.
The financial aspect presents both hurdles and opportunities. Ocean freight costs average around $600 per container, with local expenses adding another $1,000. However, electric vehicles benefit from notable tax breaks: they are exempt from Import Adjustment Tax (IAT) and Value Added Tax (VAT), leaving only a 15% NAC Levy and 10–20% import duties to be paid.
Planning finances under the Nigeria Tax Act 2025 can also ease entry into the market. Streamlined taxes include a 4% Development Levy on profits, and small companies with annual gross turnover of ₦100 million or less are exempt from Companies Income Tax, reducing financial barriers for smaller players.
The market itself is showing promising growth. New vehicle sales rose by 18.9% in 2023, and the used car market is projected to grow significantly by 2029. The government’s commitment to ensuring that 30% of all vehicles sold are locally manufactured EVs by 2033 further highlights the potential for expansion.
To capitalize on these trends, working with experts is critical. Partner with experienced freight forwarders who understand the regulations, use VIN valuation to estimate clearing costs, and leverage the Nigeria Trade Hub portal for classifying goods and estimating duties. The Pre-Arrival Assessment Report (PAAR) system simplifies the process by allowing import documents to be submitted online for evaluation before cargo arrives, saving time and effort.
Success in Nigeria’s evolving EV market depends on a strategic focus on vehicle features and government-backed incentives. Choose vehicles with high ground clearance, extended battery life, and accessible local servicing options. By aligning with these priorities and building strong operational support systems, businesses can position themselves to thrive in this growing market. With Nigeria aiming for zero-emission vehicle targets by 2040, mastering the 2025 import rules will be key to securing a competitive edge in this expanding industry.
FAQs
How will Nigeria’s 2025 EV import regulations affect electric vehicle prices for buyers and dealers?
Nigeria’s upcoming 2025 electric vehicle (EV) import regulations are set to shake things up for both buyers and dealers. On the bright side, tax breaks and duty exemptions could lower the upfront costs of EVs, making them more accessible to consumers and opening new doors for dealers to grow their businesses.
But there’s a flip side. Tighter customs enforcement and possible tweaks to import duties might eat into some of these savings. So, while EV prices could drop overall, the actual impact will hinge on factors like compliance expenses and how the market reacts. Keeping a close eye on these developments and planning ahead will be crucial for anyone navigating this shifting EV market.
What do foreign automakers need to do to set up local EV assembly plants in Nigeria under the 2025 import rules?
Foreign automakers aiming to operate in Nigeria under the 2025 EV import regulations will need to fulfill two primary requirements:
- Set up a local assembly plant within three years of beginning operations in the country.
- Ensure at least 30% of components are sourced locally, encouraging the growth of Nigeria’s supply chain and manufacturing capabilities.
These steps aim to strengthen local industries while supporting the seamless adoption of electric vehicles into Nigeria’s economy.
What obstacles do buyers and dealers face with electric vehicles in Nigeria, and how can they address them?
Buyers and dealers in Nigeria encounter a range of hurdles when it comes to adopting electric vehicles (EVs). These include limited access to charging stations, high initial purchase costs, an unreliable power supply, and a shortage of locally available EV options.
To tackle these challenges, several practical steps can be taken. For instance, investing in solar-powered charging stations could help overcome electricity reliability issues. Importing used EVs is another way to make these vehicles more affordable. Leveraging government incentives, such as tax breaks or reduced import duties, can also ease financial barriers. Finally, increasing public awareness about the long-term advantages of EVs – like lower maintenance costs and environmental benefits – could encourage more people to embrace this technology and support the growth of the EV market in Nigeria.
