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Alfa Designs to invest in EV, cites power cost challenges

 

By Abdullahi Lukman

Alfa Designs Nigeria Ltd. says it plans to invest in electric vehicles (EVs) as a long-term strategy in Nigeria’s energy transition, but insists that the move will depend on improvements in power supply availability, stability and cost.

The Group Managing Director and Chief Executive Officer of the company, Mr. Quadri Fatai, said the current electricity realities in Nigeria make gas a more practical transition fuel in the short to medium term, despite the environmental advantages of electric vehicles.

Fatai explained that while EVs offer near-zero emissions and are more environmentally friendly than petrol, diesel or even gas-powered vehicles, their economic viability is closely tied to the cost of electricity used to charge them.

According to him, charging EVs with expensive electricity undermines their affordability, making them less attractive to consumers.

He added that cost considerations that informed the shift from petrol and diesel to gas must also guide decisions on electric mobility.

The Alfa Designs chief noted that electric vehicles emit almost no carbon dioxide or soot at the point of use, unlike internal combustion engines, making them highly attractive from an environmental standpoint.

He described EV investment as a “phase three” objective for the company, to be pursued after Nigeria addresses gaps in power generation, transmission and distribution.

He said widespread and affordable electricity supply was critical before EVs could become commercially viable for most Nigerians.

Fatai disclosed that Alfa Designs already has partnerships in the electric vehicle space but has chosen not to prioritise large-scale deployment at this stage, citing the higher cost of electricity per kilowatt compared to gas.

He expressed optimism that increased domestic gas utilisation would reduce electricity costs over time, creating conditions that would support wider EV adoption.

According to him, a phased approach to energy transition would enable Nigeria to balance environmental sustainability with affordability and economic growth, adding that electric vehicles would become a natural next step once electricity becomes cheaper than gas on an energy-equivalent basis.

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