Senate Passes Electric Vehicle Transition Bill For Second

The Senate on Wednesday passed for second reading the Electric Vehicle Transition and Green Mobility Bill, 2025.

The bill, sponsored by Senator Orji Uzor Kalu (Abia North), seeks to establish a comprehensive national framework for the transition to electric vehicles.

The bill also seeks to promote local manufacturing, ensure environmental sustainability, and position Nigeria as a leader in clean energy transportation on the African continent.

Senator Kalu, who led the debate, said the proposed law is designed to transform Nigeria’s automobile and energy sectors by promoting innovation, local assembly, and environmental protection while creating thousands of jobs across the manufacturing value chain.

Kalu said, “This bill will help Nigeria move from dependence on fossil fuels toward a cleaner and sustainable energy system. It will ensure that our local industries benefit directly from the emerging global electric vehicle market, create jobs, and reduce emissions in our cities.”

The sponsor said the bill provides incentives like holidays, import duty waivers, toll exemptions, subsidies, and road tax exemptions for electric vehicle users and investors, while also mandating the installation of charging points in all petrol filling stations in the country.

The proposed law emphasises local content compliance and makes it mandatory for foreign automobile makers seeking to operate in Nigeria to enter into partnerships with licensed Nigerian assemblers.

They must also establish assembly plants within three years of operating in the country. It requires such companies to attain at least 30 per cent local sourcing of components by 2030.

The bill prescribes an N250m penalty for non-compliance, including the immediate suspension of operations of errant firms.

Also, any unlicensed importer or dealer of the vehicle would be made to pay a ₦500m fine per shipment, including confiscation of goods.

The Bill also prohibits unauthorised research and development partnerships, ensuring that government grants or incentives for electric vehicle innovation are channelled through licensed Nigerian institutions.

“We are creating a system that protects Nigerian industries and ensures that technology transfer and innovation happen locally,” Senator Kalu said.

The bill seeks the establishment of a comprehensive regulatory and institutional structure coordinated by the Federal Ministry of Industry, Trade, and Investment and supported by key agencies.

The Standards Organisation of Nigeria (SON) will play its statutory role of developing safety and performance standards for electric vehicles, batteries, and charging equipment.

The Federal Ministry of Transportation will oversee licensing, public transportation integration, and electric vehicle infrastructure guidelines.

Also, the Federal Ministry of Power, the Federal Inland Revenue Service (FIRS) and the Federal Ministry of Environment are assigned key roles in the project.

Senators who supported the bill through their contributions were Senators Adamu Aliero, Osita Ngwu, and Titus Zam, among others.