EV adoption: Roxettes seeks cheaper financing, local manufacturing incentives

Nigeria’s drive to accelerate electric vehicle (EV) adoption requires affordable financing, expanded charging infrastructure and stronger incentives for local manufacturing, the Chairman of The ROXETTES Group and ROXETTES Eco-Drives Ltd, Arc. Dr. Kaycee Orji-Kelechi, has said.

Orji-Kelechi said high interest rates, foreign exchange challenges and import-duty concessions for foreign vehicle suppliers were putting domestic automakers at a disadvantage, threatening investments in Nigeria’s emerging electric mobility industry.

In an exclusive interview, he called for policies that would make electric vehicles more accessible to commercial transport operators while encouraging local assembly, technology transfer and job creation.

According to him, the commercial transport sector offers significant opportunities for EV adoption because taxi drivers, ride-hailing operators and logistics companies could reduce fuel and maintenance expenses by switching to electric vehicles.

He said ROXETTES Eco-Drives planned to combine local assembly with lease-to-own and drive-to-own financing arrangements to make EVs more affordable.

The company is also developing BeeRides, an indigenous ride-hailing platform within the BEEZENDS ecosystem, which will initially accommodate drivers using existing vehicles before gradually introducing electric vehicles into its fleets.

“Affordability is not just about how much a vehicle costs to purchase, but how much it costs to operate and how much income it can generate over time,” he said.

On charging costs, Orji-Kelechi illustrated the potential savings using petrol at N1,450 per litre and electricity at N209 per kilowatt-hour.

He estimated that a petrol vehicle consuming eight litres per 100 kilometres would spend about N11,600 on fuel, compared with approximately N3,762 for an electric vehicle consuming 18 kilowatt-hours, including charging losses.

He said this represented potential energy-cost savings of about 67.6 per cent, although actual savings would depend on vehicle efficiency, electricity tariffs and charging arrangements.

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For commercial drivers covering 200 kilometres daily over 26 operating days monthly, he projected potential savings of approximately N407,576 per month, excluding financing, depreciation and maintenance costs.

He identified solar-assisted charging, battery storage and grid electricity as possible components of a sustainable charging network, noting that establishing commercial fast-charging hubs could require tens or hundreds of millions of naira, depending on their capacity and configuration.

Orji-Kelechi disclosed that equipment installation at the company’s automotive assembly facility in Obuaku Industrial City, Ukwa West Local Government Area of Abia State, had been completed.

He said the company’s strategy covered electric, compressed natural gas (CNG), hybrid and petrol-powered vehicles, arguing that Nigeria’s transition should accommodate different technologies as infrastructure and consumer demand develop.

The businessman urged the government to prioritise affordable long-term financing, incentives for domestic automotive production and investment in charging infrastructure.

He also criticised what he described as an imbalance between concessions available to foreign EV importers and the support provided to local manufacturers.

According to him, high domestic borrowing costs, which he said could approach 40 per cent, make it difficult for Nigerian manufacturers to compete with foreign companies that may have access to cheaper financing.

He called for a review of import-duty exemptions and related concessions to ensure that policies promoting EV adoption do not undermine local industrial investments.

The ROXETTES chairman further urged the government to improve access to foreign exchange and ensure that public institutions support locally manufactured products in line with the Nigeria First policy.

He said Nigeria should progressively strengthen local assembly, component production, technical training and research partnerships to reduce dependence on imported finished vehicles.

On battery sustainability, Orji-Kelechi advocated a national framework for battery recycling, safe disposal and second-life applications in energy storage.

He maintained that electric mobility could create jobs, reduce transportation costs and expand Nigeria’s industrial capacity if supported by consistent policies, accessible financing and infrastructure investment.

“Government should provide the enabling environment while the private sector drives investment, innovation and implementation,” he said.