Nigeria Goes Green: Landmark $10B Deal with South Korea for Africa's First EV Factory
Nigeria has taken a giant leap toward a sustainable future by signing a historic Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC). The deal, finalized on January 30, 2026, aims to establish the continent’s first large-scale Electric Vehicle (EV) manufacturing plant and a comprehensive nationwide charging network.
The agreement was signed in Abuja by the Minister of State for Industry, Trade and Investment, Senator John Enoh, and AEDC Chairman Yoon Suk-hun. This partnership is a cornerstone of Nigeria’s National Energy Transition Plan, designed to slash the country’s $10 billion annual expenditure on fuel and vehicle imports.
The Road to 300,000 Vehicles
According to the National Automotive Design and Development Council (NADDC), the project will be implemented in two strategic phases to ensure a smooth transition into high-tech manufacturing:
- Phase 1 (Assembly): The initial focus will be on the assembly of electric cars, buses, and commercial vehicles using imported kits to build local technical familiarity.
- Phase 2 (Full Production): The facility will scale up to "in-house" manufacturing, including the production of critical components like battery packs, chassis, and software.
Feature
Target / Impact
Annual Capacity
Up to 300,000 vehicles
Job Creation
10,000 direct and indirect jobs
Infrastructure
Nationwide EV charging stations
Key Tech
Battery technology transfer
Reducing Fossil Fuel Dependence
This shift is not just about cars; it’s an economic and environmental pivot. By localizing EV production, Nigeria intends to "leapfrog" traditional fossil-fuel-dependent industrialization. Minister John Enoh described the move as a "statement of intent" that positions Nigeria to compete in future-facing global industries.
"Our objective is to prove that African manufacturing can leapfrog straight into the electric age rather than repeating the mistakes of the fossil-fuel past." Senior NADDC Official
For more on Nigeria's evolving industrial landscape, visit our Business News section.
Challenges and Global Ambition
While the deal is historic, industry analysts suggest its long-term success will hinge on a consistent power supply and supportive government policies. However, with South Korea providing technical expertise in battery systems, Nigeria is now better positioned to become the primary EV hub for the African continent.
Stay tuned to Naija Rave for more updates on the rollout of Nigeria's first electric charging stations.
