Through Sharelle B. McNair
February 4, 2026
The deal is seen as a way for the country to transform from a consumer of used imports to a producer of high-tech exports.
Nigeria does take steps in the domestic electric vehicle (EV) sector by signing an agreement with South Korea to build Africa’s first EV factory, Business Insider Africa reports.
On January 30, Nigeria signed an agreement with South Korea’s Asia Economic Development Committee (AEDC) to establish Africa’s first EV factory. Signed by Nigeria’s Minister of Industry, Senator John Enoh and AEDC Chairman Yoon Suk-hun, industry leaders call the agreement a ‘landmark collaboration’.
“On January 30, 2026, the Federal Government of Nigeria, through Senator John Enoh, Minister of State for Industry in the Federal Ministry of Industry, Trade and Investment (FMITI), signed a Memorandum of Understanding (MoU) with the Asia Economic Development Committee (AEDC) of South Korea to establish an Electric Vehicle (EV) manufacturing plant and develop critical charging infrastructure across the country,” the National Automotive Design and Development Council (NADDC) said in a statement statement.
“This groundbreaking collaboration is strongly aligned with Nigeria’s National Energy Transition Plan (ETP) and the National Automotive Industry Development Plan (NAIDP).”
The initiative’s plans are in line with the African nation’s energy and automotive development plans, including the development of essential EV infrastructure. With the country importing approximately 720,000 vehicles every year, 74 to 90% of which are used cars, the automotive sector faces structural challenges, including limited local production, high assembly costs and a heavy dependence on imports.
Under the new plan, efforts will include state-level financial and init programsinitiatives, such as electric buses in Lagos.
“Nigeria is ready to compete in forward-looking industries,” Enoh said Tech Labari. “This is a statement of intent.”
The two-phase plan starts with installation. The activities will focus on vehicle assembly, from imported kits to technical exposure. The second phase will focus on full-scale production, with the long-term goal of manufacturing in-house, keeping key components such as batteries local, and reducing the company’s $10 billion annual spend on fuel and vehicle imports.
Once fully operational, the plant is expected to produce 300,000 vehicles per year and create almost 10,000 jobs.
While Nigeria has a reputation as the world’s end-of-life hub for internal combustion engines, the deal is seen as a way for the country to evolve from a consumer of used imports to a producer of high-tech exports.
Other countries in Africa have made strides in electric vehicle production, with Ethiopia leading the way with 100,000 electric vehicles. The Nigerian goal is more about “large-scale production.”
Data showed that Africa had fewer than 30,000 electric vehicles in use, which accounted for less than 1% of total sales by mid-2025.
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