Nigerian Car Dealers Consider Electric Vehicles as Demand for Petrol Cars Drops
- Nigerian car dealers say demand for petrol and diesel vehicles has dropped significantly
- The Association of Motor Dealers of Nigeria is considering electric and gas-powered cars as alternatives
- Dealers say many Nigerians now prefer refurbishing existing cars instead of buying new ones
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Car dealers in Nigeria are increasingly considering a shift toward electric vehicles (EVs) as demand for petrol- and diesel-powered cars continues to decline, industry operators have said.
Source: Getty Images
The National President of the Association of Motor Dealers of Nigeria (AMDN), Mr Ajibola Adedoyin, disclosed this in a telephone interview with The Punch, explaining that dealers are reassessing their business models in response to changing market conditions.
According to Adedoyin, the association is looking to promote made-in-Nigeria vehicles, as well as electric and gas-powered cars, as alternatives to conventional fossil fuel vehicles.
He said dealers are exploring entry into the electric and gas vehicle segment, noting that these options represent the future direction of transportation in the country.
Adedoyin acknowledged that while the exchange rate has remained relatively stable, demand for cars has dropped significantly, as many Nigerians now focus on maintaining and refurbishing existing vehicles rather than purchasing new ones.
EVs to become more popular soon
He also admitted that electric vehicles are yet to gain widespread acceptance in Nigeria due to infrastructure and technical concerns, including battery performance and maintenance challenges.
However, he maintained that EVs are likely to become more prominent in the coming years.
“Electric cars may have some disadvantages at the moment because they are not yet fully integrated into our system, but they remain a viable option that can be promoted as the next phase of transportation,” he said.
Commenting on the Nigeria Customs Service’s recent decision to allow temporary importation and transit of personal vehicles by international travellers, Adedoyin said the move may have a limited impact on the local car market.
He explained that only travellers from neighbouring countries are likely to benefit from the policy, as it may not be practical for visitors from distant countries to ship vehicles into Nigeria for short stays.
Another car dealer at Berger Car Market, Mr Chinonso Amariwu, also confirmed a drop in demand for fossil fuel vehicles, adding that interest in electric cars is gradually increasing.
Amariwu said while battery durability and technical expertise remain concerns, dealers are working to address these challenges as part of plans to expand into the EV market.
Source: Getty Images
Firm to deploy EV charging stations in Lagos
Recall that LUG West Africa, an automaker company, unveiled its plans to deploy over 250 EV charging stations in Lagos by 2026.
The company will establish a local assembly plant for street lighting infrastructure. The project is expected to support job creation and renewable energy development.
FG supports producers, launches EVs
Legit.ng earlier reported that the federal government has pledged its support to local manufacturers of electric vehicles in Nigeria.
After supporting automaker company Innoson, the government also showed support for Saglev Electromobility Company Limited, the company which produces a range of electric vehicles and expressed commitment to supporting local content, technology transfer, and job creation.
Also, President Bola Tinubu recently commissioned 3,620 electric vehicles to expand affordable transport and improve mobility across Borno State.
Source: Legit.ng
