In a bid to accelerate its economic diversification and industrialization drive, the Federal Government of Nigeria has appealed for China’s support in establishing electric vehicle (EV) assembly plants in the country.
The request was made by the Minister of State for Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, during a visit by the Chinese Ambassador to Nigeria, Yu Dunhai, to the Ministry of Foreign Affairs.
Describing China as one of Nigeria’s largest trade partners, Odumegwu-Ojukwu emphasized the long-standing economic cooperation between both countries and the need for deeper collaboration, particularly in the automotive sector.
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“In line with President Tinubu’s policy to industrialize Nigeria, we expect China’s cooperation to enable us to establish assembly plants for electric vehicles,” she stated.
However, as Nigeria expresses its ambition to advance in the EV industry, analysts have pointed out a critical gap in the country’s infrastructure—electricity. Given Nigeria’s chronic power shortages, economic experts say that the government should prioritize seeking China’s support in resolving its energy crisis before venturing into power-dependent industries like electric vehicle manufacturing.
Nigeria currently generates just over 5,000 megawatts (MW) of electricity, far below the estimated 33,000MW required to meet the country’s industrial and domestic needs. The shortfall has long been a major impediment to economic growth, with businesses and industries forced to rely on expensive diesel-powered generators to keep operations running.
For a country aspiring to develop an EV industry, a stable power supply is non-negotiable. Electric vehicle manufacturing, charging infrastructure, and overall industrial activities require consistent and affordable electricity.
According to energy analysts, the power sector’s inefficiency has stifled industrialization, discouraged foreign investment, and increased production costs across multiple sectors. Nigeria’s struggling manufacturers cite erratic power supply as one of their biggest operational challenges, with many forced to relocate or shut down due to high energy costs. The manufacturing sector, which should be a driving force for economic development, is severely constrained by the unreliable power grid.
Against this backdrop, analysts are urging the government to seek China’s help in addressing the power crisis as a fundamental step toward achieving industrialization and supporting industries like electric vehicle production.
Energy policy experts believe that the Nigerian government must first solve the electricity problem before focusing on power-intensive industries such as electric vehicle production. They suggest that instead of requesting China’s assistance in setting up EV plants, Nigeria should engage Beijing in strategic discussions to significantly boost power generation, transmission, and distribution.
China has vast experience in large-scale power infrastructure projects, including hydroelectric, solar, and coal power plants. Many African nations, including Ethiopia and Zambia, have leveraged China’s expertise to expand their power grids.
China’s involvement in Nigeria’s power sector has been relatively limited compared to other sectors like railways and roads. Analysts believe the government should urgently request China’s assistance in building additional power plants, upgrading the national grid, and enhancing renewable energy projects.
China’s growing involvement in Nigeria’s economy is part of its broader strategy to strengthen its influence across Africa. Over the years, Beijing has heavily invested in Nigeria’s infrastructure, financing projects in transportation, industrial parks, and even the Lekki Deep Sea Port. However, its involvement in Nigeria’s power sector remains minimal despite the country’s glaring electricity challenges.
With trade between both countries surpassing $21 billion in 2024 and Nigeria’s exports to China increasing by over 25%, experts argue that a strategic partnership focusing on power generation would be far more beneficial than prioritizing EV assembly plants at this stage.
Additionally, the recent renewal of a $2 billion currency swap agreement between Nigeria and China is expected to strengthen financial cooperation and promote bilateral trade. However, without sufficient energy to power industries and boost manufacturing, Nigeria may struggle to maximize the benefits of its trade agreements with China.
While Nigeria’s push for EV assembly plants aligns with global trends in green energy and industrialization, it raises concerns about the government’s priorities.