EV Manufacturers Struggle with 40% Loan Rates and Forex Access
Nigerian EV manufacturers and importers warn that difficult forex access through banks and 40% loan interest rates are crippling the local electric mobility industry. Dr Kaycee Orji-Kelechi of ROXETTES Eco-Drives says most businesses buy dollars from the black market because bank letters of credit face delays. Biodun Osabinu of Abuja-based Devex Autos explains importers with genuine orders still struggle to get dollars on time, forcing them to price in uncertainty and freeze working capital in inventory.
The cost gap is stark: local manufacturers borrow at nearly 40% while foreign competitors access near-zero financing, letting them undercut Nigerian-made vehicles. Operators say this makes it impossible to compete on price without losing money. The challenges affect the entire EV supply chain—vehicles, batteries, charging equipment, and specialized machinery all require imported components.
In April, the Federal Government announced import duty waivers on EVs, mass transit buses, and manufacturing machinery. Forex reforms began June 2023 with the willing-buyer, willing-seller model. But operators want a coordinated framework: affordable long-term financing, local assembly incentives, technology transfer, and charging infrastructure investment.
With Nigeria targeting energy transition, will policy address the financing gap that keeps local EV assembly uncompetitive, or will the market remain dependent on cheaper imports?