Nigeria has signed a memorandum of understanding (MoU) with South Korea’s Asia Economic Development Committee to establish an electric vehicle (EV) manufacturing plant, officials announced.
The multi-phase project is designed to roll out initially as an EV assembly facility, before transitioning to fully integrated vehicle manufacturing. Once fully operational, the plant is expected to reach an annual production capacity of up to 300,000 vehicles and generate around 10,000 jobs, the government said.
The initiative is part of Nigeria’s broader effort to reduce dependence on imported used vehicles. Currently, the country imports more than 200,000 second-hand cars annually, making it one of the largest markets for pre-owned vehicles in the world. Government officials said that promoting local EV production will curb import reliance, create employment, and foster domestic technological capacity.
“This partnership represents a major step in Nigeria’s journey toward sustainable mobility and industrialization,” said a federal ministry spokesperson. “It aligns with our national strategy to support clean energy, develop local manufacturing capabilities, and strengthen the automotive sector.”
The country has faced persistent structural challenges in its automotive industry, including limited local component integration and high production costs for assembled vehicles. Analysts say these factors have encouraged reliance on imports, but initiatives like the EV plant could gradually shift the balance toward domestic production.
The Nigerian government has previously taken steps to promote electric mobility. In December 2024, authorities launched a 20 billion naira ($12 million) consumer credit fund aimed at facilitating purchases of locally assembled electric cars, tricycles, and motorcycles. In March 2025, the government approved a 151.9 billion naira plan to introduce electric mass transit solutions in the northeastern region, signaling growing support for EV adoption nationwide.
The MoU and the planned plant also complement Nigeria’s National Energy Transition Plan and National Automotive Industry Development Plan, which provide a legal and strategic framework for the adoption and production of electric vehicles. Officials said the partnership with South Korea’s committee will bring in technical expertise, manufacturing knowledge, and investment support to accelerate Nigeria’s EV ambitions.
The EV plant is expected to create a significant number of skilled and semi-skilled jobs in assembly, maintenance, and supporting industries, contributing to local economic growth. Observers note that success will depend on the government’s ability to strengthen supply chains, integrate local components, and ensure competitive production costs.
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“The project represents not just industrial expansion, but also environmental and technological advancement,” said an Abuja-based energy analyst. “It could help Nigeria reduce its carbon footprint, develop domestic talent, and become a hub for electric mobility in West Africa.”
The initiative also aligns with global trends toward cleaner transportation and energy transition. African governments are increasingly promoting electric vehicles to tackle urban pollution, reduce fuel imports, and stimulate green industrial growth. Nigeria, with its large population and growing urban centers, is seen as a key market for EV adoption in West Africa.
By combining domestic policy support with international technical partnerships, Nigeria hopes to position itself as a regional leader in electric mobility. The South Korea-backed plant is expected to serve as a blueprint for future EV manufacturing ventures, supporting the government’s goal of creating a sustainable, competitive automotive sector capable of meeting both domestic and regional demand.
