Some of the largest consumers of Nigerian crude oil are witnessing explosive growth in the sales of electric vehicles (EVs), endangering Nigeria’s earnings from petroleum and its byproducts.
In the first quarter (Q1) of 2024, National Bureau of Statistics data found that France, Spain, India, and the United States were the four leading importers of Nigerian oil; yet, during the same period, they witnessed notable increases in the adoption of electric vehicles.
In France, EV sales increased 24.3% in the first quarter of 2024 compared to the same period in 2023. In India, EV adoption increased by 40% compared to the same period in 2023.
The worst was seen in the US, as EV sales increased dramatically by 50% over the same period in 2023. Compared to the same period in 2023, EV sales in Spain increased by 12% in the first quarter of 2024.
Africa’s largest oil-producing nation, according to Tunde Ayeni, a senior energy analyst at a Lagos-based consultancy business, is still adjusting to life after oil, believing that the market for black gold will always exist.
Ayeni said,
Despite decreasing growth in certain areas, the International Energy Agency (IEA) predicted that electric and plug-in hybrid car sales would reach a new global record in 2024.
According to the Paris-based forecaster, sales of plug-in hybrid electric vehicles and battery electric vehicles will reach 17 million in 2024, an increase of more than 20% from 2023.
Although sales are higher in certain nations than others, IEA chief energy economist Fatih Birol noted that the shift is gaining momentum.
BusinessDay reported that the growing popularity of electric vehicles is not good news for countries that produce oil, particularly Nigeria, which cannot fully utilize its reserves of crude oil. Energy think tanks predict that by 2030, there may be less demand for oil.
According to Aisha Mohammed, an energy analyst at the Centre for Development Studies in Lagos, Nigeria is especially concerned about the future worth of crude oil because fuels, oils, and distillation products account for more than 90% of the country’s export value.
Mohammed said,
TimesNow.com.ng Nigeria’s first electric vehicle (EV) charging station was inaugurated on Thursday, May 23 by NNPC New Energies Limited (NNEL), a subsidiary of the national oil firm Shafa Energies and Nigus International.
This represents a significant step toward Nigeria’s goal of weaning itself off more costly energy sources.
The parties also signed a Memorandum of Understanding (MoU) to establish charging stations in Nigeria and ensure that they are distributed throughout the country.
Source: TimesNow.com.ng
