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Nigeria has taken a major step toward clean transportation after signing a deal with South Korea to build Africa’s first large-scale electric vehicle (EV) factory.
The agreement was signed on January 30, 2025, between the Nigerian government and South Korea’s Asia Economic Development Committee (AEDC). Senator John Enoh, Minister of State for Industry, signed on behalf of Nigeria, while AEDC Chairman Yoon Suk-hun represented South Korea.
The deal will lead to the construction of an electric vehicle manufacturing plant in Nigeria, along with charging stations and other support systems needed for EV use across the country. The project supports Nigeria’s plans to grow its auto industry and reduce dependence on fossil fuels.
In a statement shared by the National Automotive Design and Development Council (NADDC) on its official X account, the agency said the partnership fits into Nigeria’s Energy Transition Plan and its Automotive Industry Development Plan.
The project will be rolled out in stages. It will begin with vehicle assembly before moving into full manufacturing using local inputs.
When fully up and running, the factory is expected to produce up to 300,000 electric vehicles each year. Officials say it could also create about 10,000 direct and indirect jobs, boosting employment and skills development.
Nigeria’s auto sector currently struggles with high production costs and limited local parts manufacturing. As a result, the country relies heavily on imported vehicles.
Each year, Nigeria brings in between 400,000 and 720,000 vehicles, most of them used. In 2023 alone, imports reached about 700,000 units. Passenger vehicle imports were valued at over $1 billion in 2024, placing Nigeria among the world’s largest markets for second-hand cars.
To encourage a shift to electric transport, the federal government introduced a 20 billion naira consumer loan scheme in December 2024. The program helps Nigerians buy locally assembled electric cars, motorcycles, and tricycles.
Local auto companies such as Innoson, Nord, PAN, Mikano, NEV Electric, DAG, and others are part of the initiative, which aims to make EVs more affordable and grow local manufacturing.
Nigeria has tried electric vehicle projects before, including partnerships in 2022 and 2025 with foreign firms. However, those efforts were limited to testing, pilot programs, or small-scale assembly.
The new AEDC-backed project is different. It is designed as a full production hub, covering assembly, manufacturing, and nationwide charging infrastructure. This makes it the first project of its kind on the African continent.
Electric vehicle use in Africa is still low. By mid-2025, fewer than one percent of vehicles sold across the continent were electric, according to EV24.
Ethiopia leads in adoption with about 100,000 EVs, followed by Ghana, Morocco, South Africa, Kenya, and Egypt. Most electric vehicles in use are motorcycles or commercial units, with high costs and limited charging points slowing wider adoption.
Nigeria’s new partnership with South Korea signals a strong push to change that trend by building a homegrown electric vehicle industry and positioning the country as a regional leader in green technology.