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Electric trucks could cut Nigeria's haulage costs by half

Nigerian Sinotrucks Limited is introducing Sitrak electric commercial vehicles to reduce logistics expenses and help tackle inflation affecting consumers.

Nigerian Sinotrucks Limited is positioning electric commercial trucks as a way to reduce logistics costs and help address one of Nigeria's persistent economic challenges: the expense of moving goods. The company, which represents Chinese truck brand Sinotruk in Nigeria, has introduced Sitrak electric commercial trucks targeting manufacturers, fast-moving consumer goods companies and fleet operators seeking to cut operating expenses and improve distribution efficiency. According to Alfred Okugbeni, founder and managing director of Nigerian Sinotrucks Limited, cheaper transportation is critical to tackling inflation and strengthening the economy. He argues that transportation costs influence the final prices consumers pay for food, manufactured products and other essential goods, making transport efficiency an important factor in the wider inflation debate.

Okugbeni said the company expects electric trucks could achieve a 40-50 per cent reduction in operating costs compared with conventional vehicles. He pointed to the company's earlier experience with compressed natural gas trucks, where customers saved 30-35 per cent of operating costs in terms of fuelling expenses. However, he acknowledged that actual savings will depend on vehicle utilisation, electricity tariffs, charging arrangements, maintenance, financing and other operating conditions. Beyond energy savings, electric vehicles could help operators reduce exposure to fuel-related risks. Okugbeni highlighted that fuel theft and the use of inferior fuel are challenges faced by conventional truck operators in Nigeria, and that electric vehicles would have lower mechanical damage risk.

Nigerian Sinotrucks is starting with light electric trucks designed for intra-city distribution rather than long-distance haulage. The company is targeting FMCG manufacturers as a promising customer segment because factories and distribution centres often operate around the clock, allowing vehicles to be charged overnight and deployed during the day. According to Okugbeni, the trucks can cover up to 200 kilometres in a day, making them suitable for certain urban delivery operations. The company plans to expand progressively into medium-duty vehicles for regional distribution as the market develops and charging options become more widely available.

Unreliable electricity supply and limited charging infrastructure remain major obstacles to widespread adoption. Okugbeni acknowledged the challenge but argued that companies could begin by deploying electric trucks on routes where charging can be planned around established facilities and company-owned charging infrastructure. He noted that charging systems available in China could recharge a truck in approximately three to six hours, depending on the system. For Nigerian operators, charging speed will influence fleet utilisation and whether available systems can support required turnaround times and daily mileage without disrupting delivery schedules.

Okugbeni does not expect diesel or compressed natural gas vehicles to disappear from Nigerian commercial transport in the near term. Instead, he believes fleet owners should adopt a combination of energy technologies based on the demands of their operations. Diesel vehicles would continue to provide operational flexibility where fuel availability is more dependable, while CNG vehicles could serve applications where refuelling infrastructure is accessible and the cost advantage is attractive. Electric trucks, meanwhile, could gradually take on urban and intra-city delivery roles.