One of the primary hurdles to electric vehicles (EVs) adoption is the unavailability of the infrastructure needed to support the purchase, such as charging units, energy, as well as the ability to afford these vehicles.
Sharing an insight during a television interview, Mayokun Fadeyibi, chief operating officer at Autochek Marketplace, highlighted the significance of policies and credit in facilitating the wider acceptance of EVs across the country.
She said while the automotive industry often brings to mind the manufacturing sector, it is, in reality, a vast ecosystem encompassing various components.
“This ecosystem includes car dealerships, maintenance workshops, vehicle financing teams, spare parts management, and several others. If the entire automotive industry collaborates, supported by harmonious policies that provide a foundation for all stakeholders to contribute effectively, there is a clear potential for a significant increase in the adoption of these vehicles.
“This growth is especially likely when considering that access to credit remains a unifying factor. Affordable car financing, therefore, plays a pivotal role in making EVs accessible to a broader range of consumers.
With the availability of attractive financing options, such as affordable car loans and extended repayment periods, individuals then have the opportunity to choose electric cars. This approach not only addresses the cost barrier but also drives demand for cleaner transportation alternatives,” Fadeyibi said.
She said the government was facilitating individual states to initiate their electricity generation, a departure from what was obtained in the past, in a drive towards making this policy a success.
“Beyond their economic advantages, electric cars hold the potential to boost the economy through job creation, technological innovation, and reduced healthcare costs. The shift towards EVs necessitates the development of a skilled workforce in the automotive industry that spans the manufacturing sector, maintenance, and charging infrastructure handlers among others,” she added.
The advent of electric vehicles offers a promising path toward a greener and cleaner future while addressing economic challenges. Over time, the integration of electric cars into mainstream transportation systems presents a vital opportunity for both environmental preservation and economic growth.
Nigeria, with its vibrant economy and burgeoning automotive market, stands poised to harness the potential of sustainable mobility through an increase in the production of electric vehicles and innovative car financing solutions.
The extensive advantages of electric vehicles include reduced fuel demand, enhanced energy independence, and decreased environmental pollution, which have positioned them favourably for adoption by countries like China, Norway, Iceland, Germany, and the UK.
Leading manufacturers in this field, such as Tesla, BMW, Ford, Jaguar, Kia, Nissan, Chevrolet, GAC, and some other noteworthy producers, have further contributed to the widespread embrace of EVs.
Notably, Nigeria saw its first EV assembly in 2020, undertaken by the Stallion Group, resulting in about 200 vehicles sold. Looking ahead, projections from statistics indicate a substantial growth trajectory, estimating sales to range from 9.6 percent to 23.8 percent between 2023 and 2026.
While EV adoption is still in its nascent stages in Nigeria, the impact of the government in ensuring its adoption has been seen in the establishment of the 10-year tax relief to EV manufacturers, with more favourable policies and infrastructures such as charging units and other installations to be established in the coming days.