The World Bank has highlighted the detrimental Impact of the previous Administration’s decision to Subsidize the Price of Petrol on the Development of e-mobility and the adoption of Alternative Vehicles in Nigeria.
In a Document
titled “E-Trans-Electric Mobility and Transition in Nigeria: Strategy and Implementation,” aimed at Fostering Discussions on clean energy e-Mobility Strategies to reduce air Pollution and Greenhouse gas emissions, the Bank revealed that the Subsidy consumed N4.39 trillion in 2022.
The Bank explained that e-mobility Encompasses Electric-Powered drivetrains Designed to shift away from Fossil Fuel reliance in Vehicle design.
It expressed concern over Nigeria’s substantial Funding Allocation, exceeding N4.39 trillion in 2022, for Transportation Subsidies, which Unfortunately discourages the advancement of Mobility.
By Subsidizing Petrol, the Country undermines the adoption of Alternative Vehicles like electric Minibusses, two-wheelers, three-wheelers, and other e-mobility Options.
The World Bank suggested that removing Fuel Subsidies should be accompanied by Support for e-buses through Subsidy and Financing solutions to alleviate the high upfront Costs.
It also recommended Sourcing Electricity from renewable Energy where feasible, determining the Extent of Private Sector Involvement at the outset, and Promoting the use of e-buses among Commuters.
Additionally, the Bank emphasized the need to Develop regulations and Policies at the Federal level to adapt the Tax regime and permission Framework for Importing new and used vehicles and establish safe storage, recycling, and disposal frameworks for batteries and e-waste associated with e-vehicles, drawing from International Best Practices.
The Bank’s long-term vision for Nigeria Involves the widespread adoption of Mass Transit systems, such as Rail and Bus rapid Transport, to reduce the number of Individual Commuter Vehicles on the road, curb emissions, and Encourage the acquisition and Utilization of zero-emission Vehicles like Electric Cars and Buses.
