February 4, 2026
Nigeria Inks Deal With South Korea To Host Africa’s 1st And Only Electric Vehicle Factory
The deal is seen as a way for the country to pivot from being a consumer of used imports to a producer of high-tech exports.
Nigeria is making strides in the domestic electric vehicle (EV) industry by signing a deal with South Korea to build Africa’s first EV manufacturing plant, Business Insider Africa reports.
On Jan. 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 State for 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, Hon. Minister of State for Industry at the Federal Ministry of Industry, Trade and Investment (FMITI), signed a Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) to establish an Electric Vehicle (EV) manufacturing plant and develop critical charging infrastructure nationwide,” the National Automotive Design and Development Council (NADDC) said in a statement.
“This landmark collaboration aligns strongly with Nigeria’s National Energy Transition Plan (ETP) and National Automotive Industry Development Plan (NAIDP).”
The initiative’s plans align with the African nation’s energy and automotive development plans, including the development of essential EV infrastructure. As the country imports roughly 720,000 vehicles each year, with 74–90% of them being used cars, the automotive sector faces structural challenges, including limited local production, high assembly costs, and a heavy reliance on imports.
Under the new plan, efforts will include state-level financial programs and initiatives, such as electric buses in Lagos.
“Nigeria is ready to compete in future-facing industries,” Enoh said, according to Tech Labari. “This is a statement of intent.”
The two-phase plan starts with assembly. Operations will focus on vehicle assembling from imported kits to technical familiarity. The second phase will focus on full production, with the long-term goal being “in-house” manufacturing, keeping essential parts like batteries local, and reducing the $10 billion annual spent on fuel and vehicle imports.
Once fully operational, the plant is expected to produce 300,000 vehicles per year and create close to 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 pivot from being a consumer of used imports to a producer of high-tech exports.
Other countries in Africa have made moves in EV production, with Ethiopia leading with 100,000 electric vehicles Nigeria’s goal is more about “large-scale manufacturing.”
Data revealed that Africa had fewer than 30,000 EVs in use, which accounted for less than 1% of total sales by mid-2025.
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