In May, when the Nigerian government scrapped its gas subsidy, Lagos-based food delivery worker Afeez Olatunji found himself in a tough spot. Fuel prices across the country had risen by over 160% within a week, suddenly taking a large chunk out of his earnings. Even though the food delivery platforms increased fees and riders’ commissions by roughly 50% to offset the spike in fuel costs, it was not enough for Olatunji to manage his household. “Many of my friends quit the job to look for other survival means,” he told Rest of World.
Olatunji decided to take a different approach. He had read about electric motorcycles on social media and thought that if he purchased one, his earnings would no longer depend on gas prices. In July, he borrowed money from his brother who lived abroad and bought a Roam Air e-bike.
“It was one of the best decisions I have ever made,” Olatunji said. “My electric motorcycle requires less maintenance because it has fewer moving parts. Plus, it feels quieter and smoother to ride.” He said his monthly fuel and maintenance expenses have reduced by around 60% since he shifted to an electric vehicle.
In a country where EV usage was “likened to the number of humans residing on Mars” until June, the abrupt withdrawal of the gas subsidy has encouraged many to try electric motorbikes.
Food delivery workers, who had begun using e-bikes in the past few months, told Rest of World the shift had saved them the stress of worrying about fuel prices, which have increased by nearly 230% since May. Workers said they now save 40%–60% more per month. “I used to spend about 45% of my income on fuel and servicing when I rode the conventional motorcycle,” Chuks Omezi, a food delivery worker in Abuja, told Rest of World. “But these expenses are now a foregone thing. When charged overnight using a standard wall socket, I can use [the e-bike] to travel up to 100 kilometers in a day.”
Maxwell Onyebuchi, a vehicle dealer in Lagos, told Rest of World he had received orders for 30 electric motorcycles in the past three months, most of which were from gig workers. In comparison, his dealership sold just nine EVs in the first six months of 2023. “The EVs are being shipped from China, where we have business partners. Each electric two-wheeler costs $1,200, which is quite cheaper than most brands in the market,” Onyebuchi said. “I noticed the interest [in EVs] picked up when fuel prices and spare parts costs started soaring around June. If we could sell 30 units within three months, I believe by next year, we should be able to do 500 orders.”
Alexander Okeoma, a motorbike dealer based in China’s Jiangsu province, told Rest of World he plans to ship at least 20 electric two-wheelers to Lagos before the end of the year. “I’m still expecting more orders, so it’s possible the number will increase,” he said. “Most of the orders are from Lagos and I think, before you know it, more people will be ordering from other cities in Nigeria. It’s wonderful that people are now buying electric motorcycles. This time last year, I didn’t know I would be in the EV business.”
The only issue I see with EVs is poor infrastructure.”
Omezi said the only reason more food delivery workers haven’t abandoned their gas-powered bikes is that electric motorcycles are still expensive. An entry-level e-bike in Nigeria is priced at $1,200–$1,700, compared to a gas-powered motorcycle that costs just $620.
Ayoade Ibrahim, general secretary of the Amalgamated Union of App-based Transport Workers of Nigeria, told Rest of World that gig workers shifting to EVs was a good move, but inadequate infrastructure continues to be a hurdle. Public EV-charging infrastructure in Nigeria is currently nearly nonexistent, according to a 2022 report by global think tank Energy for Growth Hub. “We have been encouraging our members to consider alternatives to petrol-powered vehicles, such as EVs and CNG [compressed natural gas],” Ibrahim said. “This will reduce their fuel expenses and boost their income. The only issue I see with EVs is poor infrastructure. For instance, charging points are scarce.”
The cost barrier might lower in the future as food delivery companies look to step in. Glovo, for instance, is looking to pilot a large-scale EV program for its riders in Nigeria by the end of the year, and is in talks with manufacturers. “While the cost of these vehicles presents challenges, we aim to help interested couriers as much as possible to change their vehicles by providing them with financing options,” a Glovo spokesperson told Rest of World. The company currently has 1,400 gig workers registered on its app in Nigeria — half of whom use traditional motorcycles, and the other half use bicycles.
Glovo aims to reduce its global carbon footprint by 2030 by having 68% of its fleet comprise non-combustion vehicles. Currently, 8% of the company’s fleet is electric, the spokesperson said.
Other delivery companies are also devising ways to increase their EV usage. In November, Lagos-based last-mile delivery platform Fez introduced e-bikes in its fleet.
While gig workers’ gradual adoption of EVs is a significant development, the government needs to step in to support this shift, Muda Yusuf, former director of the business advocacy group Lagos Chamber of Commerce and Industry, told Rest of World.
“The government needs to build an environment that makes electric motorcycles cheaper, especially to help those in the gig economy and prevent job losses,” he said.
