These Top 4 Biggest Buyers of Nigeria’s Crude Oil Now Prioritise Electric Vehicles

The surge in electric vehicle (EV) adoption across major global markets poses a significant threat to Nigeria, as the top four buyers of Nigeria’s crude oil are shifting away from fossil fuel.

Notably, France, Spain, India, and the United States are increasingly shifting towards electric vehicles, reflecting a broader global move towards environmental sustainability.

According to predictions by Paris-based International Energy Agency (IEA), sales of battery electric vehicles and plug-in hybrids will reach a new global record in 2024.

The agency also disclosed that 17 million battery electric vehicles and plug-in hybrid electric vehicles would be sold in 2024, which is a 20 per cent increase from 2023 figures.

The top 4

1. United States

In the first quarter of 2024, EV sales in the United States surged by 50% compared to the same period in 2023. This marked the highest growth among the top buyers, underscoring a significant shift away from traditional fossil fuels.

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2. India

India reported a 40% increase in EV adoption during the same period, highlighting its commitment to reducing pollution and enhancing sustainable transportation solutions.

3. France

French markets saw a 24.3% increase in EV sales in early 2024, driven by governmental incentives and the ambitious goals set by President Emmanuel Macron for the national automotive industry to boost electric and hybrid vehicle production.

4. Spain

Spain experienced a 12% growth in EV sales in the first quarter of 2024, reflecting a steady but significant adoption rate as the country progresses towards green mobility. 

A platform that tracks EV sales in Europe, Electromap, reports that 36,000 electric vehicles were sold in Spain in Q1 2024 compared to 32,000 sold in Q1 2023.

Implication for Nigeria

These trends are crucial as they indicate a decline in traditional oil markets, especially problematic for Nigeria, whose economy is heavily reliant on oil exports. 

According to the Nigerian Bureau of Statistics, over 88% of Nigeria’s export value in the first quarter of 2024 came from crude oil. 

With its major customers transitioning to electric vehicles, the implications for Nigeria’s economy are severe, and considering the country’s oil revenue is a major contributor to its foreign exchange earnings and government funding. 

The nation still grapples with challenges such as oil theft, pipeline vandalism, and economic strains marked by inflation and currency shortages. These issues compound the urgency for Nigeria to diversify its economy and reduce its dependence on oil exports.

Expert opinions

A senior energy analyst in Lagos, Tunde Ayeni, expressed concerns about Nigeria’s preparedness for a diminishing oil market.

He said: “Rather than tapering off, the global EV revolution appears to be gearing up for a new phase of growth.

“The wave of investment in battery manufacturing suggests the EV supply chain is advancing to meet automakers’ ambitious plans for expansion. 

As a result, the share of EVs on the roads is expected to continue to climb rapidly.”

In the same vein, Aisha Mohammed, an energy analyst at the Lagos-based Centre for Development Studies also voiced her concerns with the Nigerian government’s seeming cluelessness about what’s coming.

“I shudder when Nigerian lawmakers still shout their voices hoarse on the relevance of oil, rather than challenge themselves in building knowledge-driven economies which can truly create wealth,” Mohammed noted.