For decades, the story of Nigeria’s roads has been written on secondhand tyres. Known locally as Tokunbo, these imported used vehicles — often worn, fuel-hungry, and maintenance-heavy — have long been the default choice for millions of Nigerians.
In an economy still largely anchored by oil, gas, and agriculture, transportation is a lifeline. Yet, demand for mobility continues to outstrip supply in both cities and rural areas. According to the US International Trade Administration, Nigeria’s annual demand for vehicles stands at 720,000, while local production is only about 14,000. That gap is filled by hundreds of thousands of used imports each year, generating little local economic value.
There’s also a cost far beyond the naira. RMI and Sustainable Energy for All (SEforALL) estimate that importing used cars drains about $8 billion annually from Nigeria’s economy, while flooding the country with high-emission vehicles that fail to meet the environmental standards of their countries of origin.
Now, in an era of rising fuel costs, inflation, and environmental strain, one Nigerian company is daring to change that narrative.
SAGLEV, the pioneer behind Nigeria’s first electric vehicle (EV) assembly plant in Lagos, is taking aim at the Tokunbo market by offering clean, cost-efficient mobility made in Nigeria.
In 2023, Nigerians imported N1.063 trillion worth of used vehicles — a staggering 226.46% jump from the N325.05 billion spent in 2022, according to the National Bureau of Statistics. While imports rose, so did the costs for everyday Nigerians, from soaring fuel expenses to frequent repairs on ageing engines.
“There’s almost no value in bringing in a used car from Japan,” said SAGLEV founder Gbenga Faleye. “We may collect import duties, but what about jobs? What about technical training? What about cleaner air?”
Faleye argues that EVs offer a radical cost advantage. “EVs have only 40 moving parts, compared to over 4,000 in petrol cars. That’s 50–60% savings in maintenance. No oil changes, no spark plugs, no exhaust issues. Most Nigerians don’t know this.”
SAGLEV’s facility currently operates a single shift capable of assembling 2,500 vehicles a year, with plans to scale to 10,000. The company builds under a technical partnership with Dongfeng Motor Corporation, Asia’s second-largest automaker and a long-time supplier to the Dangote Group.
From inception, SAGLEV embedded after-sales service, technician training, and a parts supply chain into its business model. “We delayed launching for years just to get it right,” Faleye explained. But challenges remain.
During a recent tour of the plant by senior government officials and African Development Bank (AfDB) leaders, Faleye revealed that five containers of EV parts were stuck at port due to digital customs clearance delays. “Many clearing agents don’t know how to use the electronic portals,” he said. “We have customers who’ve paid deposits, waiting for cars we can’t finish assembling yet.”
Minister of Industry, Trade and Investment Jumoke Oduwole praised the plant’s potential. “This is what domestic industrialisation looks like. It’s affordable, sustainable, and has the potential to support ride-hailing drivers, small businesses, and even exporters.”
She cited the Nigeria First Policy under President Bola Tinubu, which prioritises local investment, and the upcoming National Single Window Project to streamline port processes by 2026.
The National Automotive Design and Development Council (NADDC) has also released Nigeria’s first National Occupational Standard for EV maintenance, designed to guide technical colleges and universities in training a new EV-ready workforce. “This will ensure we prepare technicians to support EVs nationwide,” said NADDC Director General Oluwemimo Joseph Osanipin.
Former AfDB President Akinwumi Adesina, who toured the plant, called Nigeria’s entry into EV manufacturing timely. “The global EV market is expected to reach $59 trillion in the next 20 years. Nigeria must not be left behind.”
He pledged AfDB support for infrastructure and financing, stressing the link between EV adoption and power access. “We’ve helped connect over 28 million Africans to electricity, and we will continue to invest, especially here in Nigeria.”
Kausara Bada-Ambrose, Lagos State Commissioner for Commerce, Cooperatives, Trade, and Investment, sees the plant as part of the state’s broader industrial ambitions. “The future is in our hands, and Lagos will help lead the way,” she said, noting the state’s potential as a gateway for EV exports.
Despite the plant not yet hosting a grand opening, Faleye remains focused. “Our real work is to create jobs, clean the air, reduce imports, and reshape the future of mobility in Africa,” he said. “This factory is not just building cars; it is building Nigeria’s future.”
