Nigeria, Africa’s most populous nation and largest oil producer is embracing a new form of sustainable transportation: electric scooters. A startup called Spiro has partnered with the Ogun State government to deploy 250 stations that will allow drivers to switch electric batteries for their scooters. The stations are expected to be ready over the next six months, making Ogun the first state in Nigeria to adopt this green mobility solution.
Spiro, which already operates in Benin, Togo, Rwanda, and Kenya, is seeking to expand its African fleet of 12,000 bikes. The company’s chief executive officer, Kaushik Burman, said in a statement that the launch in Ogun State is “particularly exhilarating” and “a first step in our ambitious plans to electrify Nigeria, Africa’s largest market.”
Electric scooters are lightweight, easy to operate, and produce zero emissions. They are ideal for short-distance travel and can help reduce traffic congestion and air pollution in urban areas. They are also cheaper than fuel-based vehicles, which have become more expensive in Nigeria since the government removed a costly fuel subsidy last year.
The removal of the subsidy, which aimed to encourage the use of cleaner energy sources, has also spurred the development of the electric vehicle (EV) sector in Nigeria. The country has set a target of becoming carbon neutral by 2060 and achieving full conversion to EVs by then. Several initiatives have been launched to promote the adoption of EVs, such as tax incentives, charging stations, and financing schemes.
However, the EV market in Nigeria still faces many challenges, such as high import costs, lack of infrastructure, and regulatory uncertainty. Electric scooters, which are smaller and simpler than cars, may have an advantage in overcoming these barriers. They also appeal to the young and tech-savvy population of Nigeria, which has a median age of 18.4 years.
Spiro’s entry into Nigeria’s electric mobility landscape comes at a time when the country is recovering from the economic and social impacts of the COVID-19 pandemic, which hit the tourism, transportation, and automobile sectors hard. The company hopes to create jobs and opportunities for local entrepreneurs, who can become scooter drivers, mechanics, or station operators.
Spiro is not the only player in the micro-mobility market in Africa. Other companies, such as Zembo in Uganda and Roam in Kenya, are also offering electric scooter-sharing services. The demand for such services is expected to grow as more people seek convenient, affordable, and eco-friendly ways to move around.
According to a report by Grand View Research, the Africa electric scooter market size was valued at $20.7 million in 2021 and is expected to expand at a compound annual growth rate of 7.5% from 2022 to 2030. The report cites rapid urbanization, high fuel prices, and increasing vehicular pollution as the main drivers of the market growth.
Electric scooters may not be the ultimate solution to Africa’s transportation and environmental challenges, but they are certainly a step in the right direction. As more cities and countries embrace this form of micro-mobility, the continent may see a significant improvement in its air quality, traffic flow, and energy security.
Source: Bloomberg
