Transport Sector Round-Up For Q3 2025: Consolidation And Setting The Pace For Q4

The third quarter of 2025 marked a defining period for Nigeria's transportation sector, characterised by decisive policy action , bold infrastructure strides, and the slow but steady implementation of reforms with real impact.

The Senate's advancement of the Electric Vehicle Transition and Green Mobility Bill set the stage for a cleaner, locally driven transport future. At the same time, the launch of Nigeria's first indigenous container vessel by Clarion Shipping signalled growing self - reliance in maritime logistics. In parallel, partnerships in aviation and marine transport gained traction, reemphasising Nigeria's rising influence in regional mobility.

Lagos, in particular, emerged as a beacon of sustainability, as it hosted Africa's first E1 Electric Boat Racing Championship and equally expanded its electric ride - hailing ecosystem. Together with ongoing rail rehabilitation and the nationwide push for CNG adoption, these initiatives reflect a sector aligning with global standards. As Q3 built on the momentum of earlier reforms, it set the tone for a fourth quarter focused on execution.

Major Areas of Development

1 Regulatory and Policy Developmen

Senate Advances Electric Vehicle Bill to Boost Local Manufacturing and Job Creation

In July 2025, the Nigerian Senate passed the first reading of the Electric Vehicle Transition and Green Mobility Bill. The legislation aims to establish a comprehensive framework for Nigeria's shift to electric vehicles (EVs), emphasising local manufacturing, job creation, and environmental sustainability. Key provisions include mandatory local content requirements for foreign automakers, incentives for EV adoption, and the development of charging infrastructure networks. The bill mandates that foreign companies partner with licensed Nigerian assemblers and attain 30% local sourcing of components by 2030, with penalties for non - compliance. This bill is a positive step forward as it positions Nigeria as a proactive state preparing for the full adoption of EVs by the public, rather than the 'repair after damage' approach, where EVs would be adopted without legal frameworks in place to regulate the transition.

Outlook

1. If enacted, the bill is expected to attract investments in EV assembly plants, creating thousands of jobs in manufacturing and related sectors by Q4 2025. It positions Nigeria as a regional leader in green mobility, potentially reducing reliance on imported vehicles.
2. If passed into law, the legislation will attract investments in EV assembly plants, position Nigeria as a regional leader in clean energy transportation and create jobs for the Nigerian populace. The bill's focus on local content development aligns with broader industrialisation objectives and initiatives of the National Automotive Design and Development Council

Nigeria Intensifies Bid for IMO Category C Seat at Global Maritime Symposium

Throughout Q2 and Q3 2025, Nigeria intensified its campaign for election to the International Maritime Organisation (IMO) Council under Category C for the 2026 - 2027 biennium. The campaign was officially launched during the 110th Session of the Maritime Safety Committee (MSC 110).

These efforts highlight Nigeria's increasing influence in international maritime affairs and support broader goals to enhance the country's blue economy sector. The campaign has gained backing from regional maritime stakeholders and showcases Nigeria's readiness to contribute to global maritime policy development.

Outlook

1. Securing the IMO Category C seat would elevate Nigeria's role in international maritime policy - making and standard - setting, potentially attracting increased international investment and partnerships in the maritime sector
2. Enhanced global standing would reinforce Nigeria's leadership position in West Africa's maritime affairs and blue economy development, providing additional leverage for future international maritime collaborations and infrastructure development projects.

Lagos State Moves to Establish Railway Corporation to Strengthen Urban Mobility Framewor

In October 2025, the Lagos State House of Assembly held a public hearing on the Lagos State Railway Corporation Bill, 2025, marking a major step toward institutionalising the state's urban rail operations. The proposed law aims to establish the Lagos State Railway Corporation (LSRC) as a dedicated body responsible for operating, maintaining, and expanding intra -state rail services, thereby complementing the work of the Lagos Metropolitan Area Transport Authority (LAMATA) within the state's multimodal transport system.

Under the Bill, the Corporation will be empowered to develop and maintain state - owned rail lines, manage passenger and freight services, and enter public - private partnerships (PPPs) for new projects such as the ongoing Purple, Green, and Orange Lines. It also provides for the appointment of a Managing Director and a Board of Directors, as well as the establishment of an Office of the Inspector of Railways to ensure safety compliance, operational integrity, and adherence to infrastructure standards.

Outlook

1. When passed into law, the Lagos State Railway Corporation Bill will formalise the state's control over urban rail operations, providing a clearer governance structure for rail development and management.
2. The new Corporation is expected to accelerate the implementation of Lagos' rail expansion projects and attract private sector investment in rail infrastructure under PPP models.
3. Successful coordination between the new Corporation, LAMATA, and the Federal Government's Nigerian Railway Corporation (NRC) will be crucial to avoid regulatory overlaps and ensure seamless connectivity across state and national routes.

Major Areas of Development

2 Maritime and Port Infrastructure

70%

Of the Nigeria's first indigenous container vessel are Nigerian crew members.

1,789 TEU

Clarion Shipping Q4 2025 Fleet expansion target

$1 billion

Port modernisation initiative aimed at transforming Lagos ports

Nigeria's maritime sector is undergoing rapid transformation through new export, port, and shipping investments driving trade growth and sustainability.

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