LagRide, a government-backed ride-hailing service in Nigeria, is set to introduce electric vehicles (EVs) into its fleet in 2025, positioning itself as a pioneer in the country’s ride-hailing industry. The initiative aligns with Lagos State’s broader goal of transitioning 50% of its public transport system to electric power by 2030. The vehicles will be supplied by CIG Motors Co. Ltd., the Nigerian representative of Chinese automaker GAC Motors. This follows an earlier agreement in June 2024, where LagRide secured 5,000 new vehicles, expanding its fleet to 6,000. Sources indicate that the electric cars, branded under GAC’s Wuling subsidiary, are currently being prepared for deployment.
The affordability of these EVs remains a major concern for drivers. The Wuling models, including the Yep and the Bingo, are expected to cost around ₦36 million ($22,787), making them significantly more expensive than the ₦10 million ($6,224) vehicles provided under LagRide’s 2022 financing scheme. Drivers have already voiced concerns over rising costs, especially after daily asset repayments increased by 17% in mid-2024. Many are advocating for reduced commission rates and lower repayment requirements to ensure the new electric fleet remains financially viable for users.
Affordability concerns could slow down widespread adoption.
Despite these challenges, analysts see significant potential for EV adoption in Nigeria’s ride-hailing sector. While two-wheeled electric vehicles, such as those introduced by Spiro and Ampersand, are expected to dominate the Sub-Saharan African market by 2040, LagRide’s decision to integrate four-wheeled EVs could accelerate the shift towards sustainable urban transport. The success of the initiative will depend on the availability of charging Infrastructure and the introduction of flexible financing options to encourage adoption among drivers.
This initiative comes as Nigeria seeks to modernise its transport sector and reduce reliance on fossil fuels. With rising fuel costs and environmental concerns, electric vehicles are gaining attention as a sustainable alternative. However, their success in ride-hailing will depend on collaboration between the government, private investors, and financial institutions to address infrastructure gaps and affordability challenges. Policy incentives such as Tax breaks and Subsidies could encourage adoption, while expanding charging stations and offering flexible financing options would make electric vehicles more accessible to drivers.
Stable electricity is essential for large-scale EV adoption in Lagos.
In addition to financial considerations, the rollout of electric vehicles must address Lagos’ infrastructure challenges, which could impact adoption. A reliable charging network is crucial, yet Nigeria’s unstable Electricity supply raises concerns about large-scale integration. Many areas in Lagos still experience inconsistent power, making it difficult to sustain an extensive EV charging system. Without dedicated charging stations and improved power distribution, drivers may face prolonged downtime, reducing efficiency and discouraging adoption. Investment in solar-powered charging hubs could help, but large-scale deployment would require coordinated planning and financial support from both the public and private sectors.
Public perception is another critical factor, as many Nigerian drivers and commuters remain sceptical about electric vehicles. Concerns about battery longevity, charging times, and maintenance costs have led to hesitation in embracing the technology. Raising awareness through Education campaigns, hands-on demonstrations, and pilot programmes could help build confidence in EVs. Additionally, partnerships with Fintech companies to develop flexible financing options, such as pay-as-you-go models or lease agreements, could make EVs more accessible to ride-hailing drivers. Addressing these concerns and improving affordability could foster greater acceptance of electric mobility in Nigeria.
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Ultimately, LagRide’s electric vehicle adoption is an ambitious step towards modernising Nigeria’s transportation sector. Although high costs and infrastructural hurdles pose challenges, a well-executed implementation plan could position Lagos as a model city for EV integration in Africa. Success will depend on sustained investment in charging infrastructure, favourable policies that encourage adoption, and financial solutions that balance Sustainability with economic realities. If executed effectively, this initiative could set a precedent for a broader shift to electric mobility in Nigeria.