FG, AfDB Join Forces with Saglev to Boost Electric Vehicle Production in Nigeria

The Federal Government of Nigeria has partnered with the African Development Bank (AfDB) and indigenous electric vehicle company, Saglev Electromobility Nigeria Limited, to accelerate electric vehicle (EV) manufacturing and clean transportation infrastructure across the country. This collaboration is seen as a major step toward reducing carbon emissions, promoting sustainable mobility, and enhancing Nigeria’s local industrial capacity.

The tripartite alliance, which involves a significant public-private engagement, was formalised to support the ongoing development of Saglev’s EV assembly operations in Imota, Lagos. The facility, which began pilot production earlier this year, is the first full-fledged EV assembly plant in sub-Saharan Africa and is poised to become a major contributor to Nigeria’s vehicle manufacturing ecosystem.

Saglev’s production facility, currently operating on a single shift, has a capacity of 2,600 units per year with future scalability of up to 10,000 units annually without major infrastructure expansion. The plant is configured to assemble both private electric cars and larger public transport vehicles such as electric buses, in alignment with the government’s push toward greener, more efficient public mobility systems.

Speaking during the formal announcement of the partnership, officials from the Ministry of Industry, Trade and Investment lauded Saglev’s pioneering role in developing the country’s EV capacity. They noted that the Federal Government remains committed to policies that incentivize innovation and localisation within Nigeria’s automotive sector. The government further pledged to streamline regulatory support, including fast-tracking licensing, duty relief, and enabling frameworks to support clean energy vehicles.

On its part, the African Development Bank expressed confidence in the sustainability of Saglev’s model, describing it as a transformational venture with the potential to shape industrial policy and employment creation. The bank is expected to provide funding and technical assistance, with a particular focus on capacity building, grid integration, and project financing tools to assist the company’s national rollout plans.

Saglev’s CEO, Sam Faleye, emphasized the affordability of the vehicles being produced, stating that their EVs cost up to 60% less than comparable fuel-based cars. He said this cost advantage is a deliberate strategy to drive adoption among Nigerians facing rising transport costs due to the removal of petrol subsidies and increasing fuel prices.

According to him, the company has also embedded domestic employment as a key objective of its operations. A significant number of technicians and factory staff at the Imota plant have already undergone training under local certification programs, with additional support from the National Automotive Design and Development Council (NADDC). The council, after inspecting the plant, gave assurance of compliance with international standards and quality control.

Stakeholders within the clean energy and industrial sectors see this collaboration as a blueprint for the future of green manufacturing in Nigeria. By fostering domestic assembly of EVs, the initiative reduces dependence on imports, while at the same time creating thousands of jobs across logistics, maintenance, charging infrastructure, and retail supply chains.

However, concerns around power supply persist. Some experts argue that the success of the EV programme is closely tied to the stability of electricity, especially given the energy requirements for charging infrastructure. To this end, Saglev has integrated alternative power solutions into its business model, including solar-powered charging units and modular home chargers. These are expected to supplement Nigeria’s grid instability and offer users more reliable charging options.

As EV adoption grows globally, Saglev’s entry into the Nigerian market places the country in a stronger position to benefit from emerging trends in sustainable mobility. Plans are already underway to replicate the company’s production model in northern and central states, with support from state governments and private investors. These satellite operations will support a decentralized distribution strategy and help reduce vehicle transportation costs.

Analysts predict that the local EV market will expand rapidly within the next five years, especially as urban centres begin transitioning their public bus fleets to electric-powered alternatives. This transition will not only reduce the environmental burden of petrol and diesel engines but also help Nigeria meet its climate obligations under international frameworks.

Beyond the economic and environmental impacts, the partnership is also expected to trigger a wider technology transfer within Nigeria’s engineering sector. With AfDB’s backing, Nigerian universities and polytechnics may see increased investments in electric mobility curricula, battery technology research, and mechanical innovation focused on clean transport.

The federal government reaffirmed that the partnership reflects its broader commitment to diversifying the economy and positioning Nigeria as a hub for modern industrial development. It noted that innovation, sustainability, and private sector collaboration would remain central to the country’s transformation agenda.

With a supportive regulatory environment, strong investor interest, and institutional collaboration, the partnership between FG, AfDB, and Saglev is projected to serve as a model for African countries seeking to localise green technology. As the journey continues, stakeholders remain optimistic that Nigeria can lead the continent’s transition into a cleaner, more efficient automotive future.