The World Bank has expressed that the previous administration’s decision to provide subsidies for petrol prices has impeded the progress of e-mobility and the adoption of alternative vehicles such as electric minibuses, motorcycles, and tricycles.
In a document titled “E-Trans-Electric mobility and transition in Nigeria: Strategy and implementation,” the bank highlights the funding amounting to N4.39 trillion in 2022.
The bank defines e-mobility as a broad concept encompassing the advancement of electric-powered drivetrains as a means to move away from fossil fuel usage in vehicle design.
It said, “Nigeria devotes significant funds in excess of N4.39tn in 2022 to subsidise transportation, but unfortunately, this funding serves precisely to discourage the development of mobility.
“The subsidisation of petrol discourages the take-up of alternative vehicles such as electric minibuses, two-wheelers and three-wheelers amongst other alternative sources of e-mobility.”
Additionally, the World Bank emphasized that following the elimination of fuel subsidies, the implementation of e-buses should be accompanied by subsidy and financing mechanisms to mitigate the initial high cost.
Furthermore, it recommended that electricity for e-buses should be sourced from renewable energy whenever feasible, and the level of private sector participation should be determined from the beginning.
Lastly, the World Bank advised promoting the adoption of e-buses among commuters to encourage their usage.
The Bretton Woods Institution added, “Regulations to enact policies will also need to be developed, mostly at the federal level, adapting the tax regime and permission framework for importing new and used vehicles and instituting new framework drawing from international experience for safe storage, recycling and disposal of batteries and e-waste associated with e-vehicles.
“The long-term vision calls for the expansive adoption of mass transit systems such as the Rail and Bus Rapid Transport to reduce the number of commuter vehicles on the road and curb emissions and encourage the acquisition and use of zero-emission vehicles such as electric cars and buses.”
