1. Benefits of Electric Vehicle Financing
2. Are Electric Vehicles Suitable for the E-Hailing Industry?
3. Support Measures and Charging Stations

As fuel prices continue to increase in Nigeria, transporters, including e-hailing operators, are seeking more affordable energy sources. Options include switching to compressed natural gas (CNG) and electric vehicles (EVs). But, one of the major challenges of considering a switch is financing.

Benefits of Electric Vehicle Financing

While there has been a CNG financing scheme powered by the federal government, there aren’t options for electric vehicle financing. But, that does not mean there aren’t any financing schemes for EVs. According to Sam Faleye, the CEO of electric vehicles manufacturing company SAGLEV, some financing companies are eager to provide long-term funding for e-hailing drivers willing to operate with EVs. The CEO disclosed this in a chat with Technext. Quote from Sam Faleye: "Because of the long life of electric vehicles, banking and financing companies are eager to finance EVs much longer. Not three years or 18 months, whatever. Some are already talking about financing electric vehicles for up to seven years."

Are Electric Vehicles Suitable for the E-Hailing Industry?

The largest ride-hailing company in the world, Uber, certainly believes electric vehicles are the best for the industry. Thus, the company has set a deadline of 2040 for every vehicle operating on its platform to be electric. It is important to note that rather than electric vehicles, what appears to be the national focus at this time is a shift to compressed natural gas (CNG) powered vehicles. There are valid reasons for this focus from both the government and the drivers. However, Sam Faleye believes drivers have to strongly consider making the switch by themselves for good reasons. Quote from Sam Faleye: "By direct partnership and allowing some drivers to use our vehicles in Ghana and Nigeria, we have shown clearly that, for example, a Suzuki Espresso or Alto would cost about 10,000 naira for power daily for less than 200 kilometres for an Uber driver. Electric power will only be no more than 2,500 naira at today’s electric tariff rate or less."

Support Measures and Charging Stations

Local electric vehicle manufacturing companies like SAGLEV offer extended support to drivers. The company has developed charger banks across various parking lots in Lagos, with each location having up to 20 to 100 points. The first of these parking lots would be at Mega Plaza in Lagos. The Palms will also be coming up as the company aims to have them all over Lagos. A full charge takes 4 hours which would give 325 kilometers. Quote from Sam Faleye: "We recommend for them to charge over four hours, take a four-hour break, by the way, there is no Uber driver from our data that has ever driven more than 220 kilometres a day. The car itself has a 325-kilometre range."

Financing companies are increasingly interested in providing long-term financing for drivers transitioning to electric vehicles. This is due to their long lifespan and lower operational costs, making them attractive to both drivers and financing organizations.