FG, stakeholders seek solutions to Nigeria’s EV financing, policy gaps

FG, stakeholders seek solutions to Nigeria’s EV financing, policy gaps

The Federal Government (FG)has urged stakeholders in the electric vehicle (EV) sector to provide timely data to support policies and regulations aimed at protecting local businesses and promoting production.

Dr Ibiom Ogwejofa, National Coordinator, Strategy Implementation Task Office for Presidential Executive Order 5, Federal Ministry of Innovation, Science and Technology, made the call at a round table organised by Leke services at Abuja.

Ogwejofa said the office is coordinating with Ministries, Departments and Agencies (MDAs), as well as the private sector to promote Nigerian content in the non-oil and gas sector.

He said that Nigeria needed to move beyond consumption and production to creating wealth through local innovation and enterprise.

“We often say that we want to move Nigeria from consumption to production.

“As fine as it is, we also see that we have to go beyond that. We have to move Nigeria from idea to production and to wealth, because when you stop at production, you haven’t completed the cycle. We want to move Nigeria from idea to wealth, beyond production.

”To do this, we have to work with everybody and then liaise with the government to be able to give the right prescription that will make sure that our private sector and the country as a whole is secured,” he said.

The national coordinator said government would not wait until the EV transition become too advanced before addressing challenges confronting the sector.

“I have listened to some of the observations here with respect to how the electric motor business is transitioning in Nigeria.

“We don’t have to wait until it is too late, that is why I’m here, because I want to listen to all these things and begin to translate them into policies and regulations that can protect our people.”

He urged key players in the EV sector to join the National Consultative Committee established by his office to facilitate information sharing between the private sector and government.

“In my office, we have what we call National Consultative Committee. That National Consultative Committee has members from all the MDAs in Nigeria. Those that have not deployed, we still deploy. We also have private sector participants.

”So I will be interested in some of the key players in this field to work with us so that we get the right information at the right time and transmit it to government at the right time so that the right things will be done at the right time before it is too late,” he said.

Meanwhile, industry stakeholders called for the establishment of a N100 billion fund to accelerate investment and growth in the EV sector.

Mr Laolu Adeola, Managing Director, Leke Services Ltd., said the fund will enable entrepreneurs who have demonstrated the viability of EV businesses to access capital and expand their operations.

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“With this 100 billion Naira fund, we put it to work in a way that these entrepreneurs that have proven that this business works, are able to tap into this capital pool to accelerate their growth,” Adeola said.

He said high interest rates remained a major challenge to investment in the sector, noting that commercial banks currently charged rates of up to 35 per cent because of the perceived risks associated with EV businesses.

Adeola called on government to prioritise the sector and facilitate access to low-cost capital.

Dr Alamin Ibrahim Alamin, Vice President, Electric Vehicle Assemblers and Manufacturers Association of Nigeria (EVAMAN), said private investment in the sector would remain limited without appropriate government policies.

“Unless the government provide an enabling environment through policy, that will safeguard and protect the investment of the private sector. The private sector will not put their money there.”

He also called for concessional loans with longer repayment periods to enable investors to develop EV projects.

“This kind of project requires a concessional loan, which takes a period of at least much less than five years,” he said.

On EV adoption, Mrs Jumai Vandu, representative of the National Council on Climate Change (NCCC), identified inadequate charging infrastructure as a major challenge slowing the transition.

“That is really what is delaying this movement, that is what is preventing adoption to be quick enough.”

Vandu said Nigeria have set a target of 30 per cent EV adoption by 2035, adding that existing climate financing mechanisms could be leveraged to support the sector.

The stakeholders called for blended financing, supportive policies, improved charging infrastructure and coordinated data sharing between government and the private sector to accelerate Nigeria’s transition to electric mobility.