Bad for Naira: France, India, Others Increase Electric Vehicles, Threaten Nigeria's Crude Sale

Bad for Naira: France, India, Others Increase Electric Vehicles, Threaten Nigeria's Crude Sale

  • The sales of electric vehicles (EVs) are rising at an accelerated rate in some of the most significant users of Nigerian crude oil
  • Nigeria's major importers of oil, France, Spain, India, and the United States are beginning to embrace electric vehicles
  • Africa's biggest oil-producing country is still getting used to life without oil, but it thinks there will always be a demand for black gold journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Some of the largest consumers of Nigerian crude oil are witnessing explosive growth in the sales of electric vehicles (EVs), endangering Nigeria's earnings from petroleum and its byproducts.

Countries increase electric vehicles
Countries witnessed notable increases in the adoption of electric vehicles in Q1 2024. Photo Credit: Halfpoint Images
Source: Getty Images

In the first quarter (Q1) of 2024, National Bureau of Statistics data found that France, Spain, India, and the United States were the four leading importers of Nigerian oil; yet, during the same period, they witnessed notable increases in the adoption of electric vehicles.

Read also

After Microsoft, 4 others, India’s steel company to leave Nigeria amid economic hardships

In France, EV sales increased 24.3% in the first quarter of 2024 compared to the same period in 2023. In India, EV adoption increased by 40% compared to the same period in 2023.

The worst was seen in the US, as EV sales increased dramatically by 50% over the same period in 2023. Compared to the same period in 2023, EV sales in Spain increased by 12% in the first quarter of 2024.

What analysts said

Africa's largest oil-producing nation, according to Tunde Ayeni, a senior energy analyst at a Lagos-based consultancy business, is still adjusting to life after oil, believing that the market for black gold will always exist.

Ayeni said:

“This is despite a rising push for electric vehicles sales across Europe, which may undermine Nigeria’s most valuable export."

Read also

Dealers sell cooking gas at new cost after three-week price crash

Despite decreasing growth in certain areas, the International Energy Agency (IEA) predicted that electric and plug-in hybrid car sales would reach a new global record in 2024.

According to the Paris-based forecaster, sales of plug-in hybrid electric vehicles and battery electric vehicles will reach 17 million in 2024, an increase of more than 20% from 2023.

Although sales are higher in certain nations than others, IEA chief energy economist Fatih Birol noted that the shift is gaining momentum.

“The wave of investment in battery manufacturing suggests the EV supply chain is advancing to meet automakers’ ambitious plans for expansion. As a result, the share of EVs on the roads is expected to climb rapidly.”

Bad news for Nigeria

BusinessDay reported that the growing popularity of electric vehicles is not good news for oil-producing countries, particularly Nigeria, which cannot fully utilize its crude oil reserves.

Energy think tanks predict that by 2030, there may be less demand for oil.

Read also

UK inflation slows to central bank's 2% target

According to Aisha Mohammed, an energy analyst at the Centre for Development Studies in Lagos, Nigeria is especially concerned about the future worth of crude oil because fuels, oils, and distillation products account for more than 90% of the country's export value.

Mohammed said:

“I shudder when Nigerian lawmakers still shout their voices hoarse on the relevance of oil, rather than challenge themselves in building knowledge-driven economies which can truly create wealth.”

NNPC, others launch Nigeria's first electric vehicle Nigeria's first electric vehicle (EV) charging station was inaugurated on Thursday, May 23, by NNPC New Energies Limited (NNEL), a subsidiary of the national oil firm Shafa Energies and Nigus International.

This represents a significant step toward Nigeria's goal of weaning itself off more costly energy sources.

The parties also signed a Memorandum of Understanding (MoU) to establish charging stations in Nigeria and ensure their distribution throughout the country.


Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science ( degree in Sociology from the University of Ilorin, Kwara State. Before, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via