Request for Proposal - Action Research on Technical and Commercial Viability of Electric Vehicles for Agricultural Cargo Transportation in Kano State, Nigeria

About Propcom+
Propcom+ is an FCDO-funded eight-year (2023-2030) rural and agricultural market development programme supporting climate-resilient, sustainable agriculture and forestry that benefits people, climate, and nature. The programme is implemented by The Palladium Group, and it aims to transform Nigeria's rural economy by addressing environmental, social, and economic challenges in the country's food and land-use system. It will do this by (i) increasing productivity, improving nutrition and food security; (ii) enhancing climate resilience, pursuing lower emissions, and protecting and restoring nature, and (iii) helping tackle some of Nigeria’s underlying drivers of conflict and insecurity. It does this by working as a ‘market facilitator,’ identifying constraints in Markets Systems and facilitating changes to enable rural markets to work better for the benefit of poor and climate-vulnerable smallholder farmers and rural small-scale entrepreneurs.

Propcom+ has a target of increasing the incomes and climate resilience of 3.9 million poor and vulnerable people in Nigeria, 50% of whom will be women, through a “3Ps” approach of interlinked components:

P1: Scaling-up a focused basket of Proven climate-smart interventions around agricultural and primary processing / storage practices and models to get these adopted by millions of poor and vulnerable smallholder farmers and small-scale entrepreneurs.
P2: Building markets by developing and Piloting new business models that improve productivity, enhance resilience to climate change, reduce emissions, and improve nutritional outcomes.
P3: Enabling Policies that support a strengthened enabling environment for sustainable food and land-use system.

Background

In recent times, there has been a significant increase in the cost of transportation in both urban and rural areas in Nigeria. This is a large part due to fuel subsidy removal by the Federal Government of Nigeria in May 2023.  The increase in fuel pump price (coupled with the Naira depreciation) has also led to a drastic hike in prices of other goods and services which contributed to pushing headline inflation from 28.2% in November 2023 to a 30-year high of 34.6% in November 2024. Overall, there has been a substantial increase in transportation and vehicle maintenance costs with heavier disaggregated impact on poor and vulnerable rural farmers. Many Smallholder farmers now struggle to afford transportation, limiting produce marketing and trade with attendant widening of exclusion from market activities and increase in post-harvest losses. The commercial benefits that should trickle down to the farmers are locked down by high cost of transportation which shrinks their profits. To avoid a loss, many farmers transfer the additional cost they incur to the buyer at the market, inadvertently raising the cost of food beyond the purchase capacity of farmers and low-income earners.

Beyond farmers, members of the National Union of Road Transport Workers (NURTW) and the Tricycle Owners Association of Nigeria (TOAN), who provide agricultural cargo transport services, attribute the increased transportation costs and vehicle part expenses to the surge in fuel prices. These rising costs affect their operations and even repayment of hire-purchase agreements.

To address these transportation cost concerns and their impact on farmers and agro cargo transporters, Propcom+ proposes decoupling transportation services from fuel costs. Specifically, Propcom+ aims to promote Electric Vehicles such as cargo e-tricycles and trucks to transport agricultural produce from rural communities to urban markets. Leveraging its Capital Asset Development Grant (CDEL), Propcom+ partnered with a transportation service provider in Kano State on the procurement and commercial deployment of electric vehicles (EVs) for agro-cargo transportation services in peri-urban and rural Kano. The programme also supported some agribusinesses in Kaduna and Jigawa States to adopt the use of electric vehicles for their farm operations and distribution logistics. This action research will be carried out in collaboration with these partners who are already using different types and capacities of electric vehicles for their various operations and businesses.

The vehicle types being deployed by these partners, which would be subjects of this research, include:

Three-wheeler cargo electric tricyclesThree-wheeler refrigerated cargo tricyclesFour-wheeled electric cargo trucks, andElectric bicycles.

Propcom+ will conduct action research to assess the technical and commercial viability of these EVs in agro-cargo transportation in peri-urban and rural areas of Kano, Kaduna and Jigawa state. Hence, Propcom+ is seeking a qualified consulting firm or a team of consultants to conduct this assignment.

Objective

The primary objective of this consultancy is to conduct a comprehensive action research study that compares the costs and benefits of operating electric-powered cargo vehicles for transporting agricultural produce along the Kura-Kano corridor, Kaduna and Jigawa. The goal is to understand the functionality, efficiency, ease of charging, operating costs, and emissions performance of the various electric vehicle types compared to internal combustion engine vehicles to determine the most suitable vehicle option for the local context (e.g., the one with the best range, most suited for rough terrain, or loading capacity etc.

The assignment will mainstream Gender Equality and Social Inclusion (GESI) and consider that different user groups, e.g. men, women, people living with disabilities, may have different transport needs and design preferences. While women and excluded groups may face different barriers to accessing EVs the assignment should also look at the opportunities for EVs to overcome mobility restrictions for women and excluded groups. The key here is to thoroughly evaluate the real-world performance and suitability of the different electric vehicle options for the local context for different groups of people rather than making assumptions. This will help determine the most appropriate solution.

The research should address all relevant factors, including: Vehicle ownership, Vehicle operation, Vehicle charging infrastructure, and Various challenges posed by the local environment. Specifically, the trial should involve comparing the performance and emissions of different types of electric vehicles - such as two-wheelers, three-wheelers, and four-wheelers - on the local terrain and conditions. Comparing these against traditionally used forms of transport, including Internal Combustion Engine propelled (ICE) vehicles, to answer the research questions presented in the annex to this TOR and assess:

Energy efficiencyEmissionsRangeCost-effectivenessReliabilityDurabilityEase of maintenanceAdaptability to the rural setting

Scope of Work

Assess the functionality (including cargo capacity, travel distance, actual/ average daily operational hours etc.) and vehicle durability (design, breakdowns, maintenance costs, spare parts replacement and frequency etc.)Compare the above including the energy efficiency and cost savings against alternative I.C.E (International Combustion Engine) vehicles operating within the same locationPresent the Financial model of the different EV types including their commercial viability for agro cargo transportation and propose a purchase/repayment plan for vehicle acquisition based on the assessment of the service provision.Identify additional agro cargo market locations/routes, suitable EV types for different terrains, user groups, and transport needs prospective business potential.
Present a stakeholder mapping, roles, incentives, interests, and formal and informal rules within the agro cargo transportation space. This should also include potential conflict points caused by the introduction of EV, and women drivers.Estimate the volume of Greenhouse Gas emissions reduction in tons of carbon dioxide equivalent achievable through this fuel switching initiative.Evaluate the potential of EVs to improve mobility for women, people with disabilities, and excluded groups.

Methodology: Individuals or firms engaged for this assignment will propose their own methodologies that are consistent with the standard framework for reporting methodology. The methodology should include primary and secondary data collection tools for both quantitative and qualitative data to be collected. Furthermore, it should adopt some participatory rural appraisal approaches and include counterfactual analysis in the methodology to be adopted to provide evidence for the programme’s contributions. The scope covers

Field Research: Engage stakeholders (farmers, transporters, authorities) to gather insights on current transport practices and challenges.
Assess road conditions, vehicle charging facilities, and EV compatibility with local needs.Literature Review: Review existing studies on electric cargo vehicles in similar contexts (e.g., Kenya, South Africa, Asia). The secondary/desk research should be conducted with the aim of understanding and capturing learnings from other African Countries like Kenya and South Africa and countries in East Asia that have successfully rolled out e-mobility solutions in the cargo space. 

The research will also provide information on the following:
TCO (Total Cost of Ownership) of EVs compared to ICE.
Suitability of E-Vehicles to various types of cargoes and roads conditions in terms of terrains, topographies, undulations (and verify the impact of road conditions on TCO per kilometer and per kilograms).

Explore best options in terms of charging infrastructure and energy sources including opportunities for partnerships with mini grid owners for battery chagrining services.

Explore optimal utilization rates for charging stations and explore other/versatile use cases of batteries for instance using EV batteries to power domestic and other productive use appliances, providing complementary energy sources to power powered solutions like solar irrigation pumps and solar threshers.

Identify key factors influencing EV adoption in areas with limited electricity and poor infrastructure.Cost-Benefit Analysis
Compare EVs' total cost of ownership (purchase, maintenance, operation) with ICE vehicles
Evaluate costs per kilometer, per charge, and overall cost efficiency
Determine financial feasibility, pricing strategies, and gendered cost implications.Environmental Impact Assessment
Assess emissions reduction potential and impact on local air quality
Evaluate environmental trade-offs if electricity is sourced from non-renewable energy.Operational Feasibility
Analyze EV performance under local conditions, including mileage, charging infrastructure, and wear-and-tear.
Examine cultural, gender, and social acceptance of EV use.
Capture technical advisory areas for EV suppliers on capacity building for mechanical service providers on the repair and maintenance of the EVs.Comparative Analysis and Recommendations
Rank vehicles based on performance, cost-effectiveness, and community feedback.
Provide actionable recommendations for scaling EV use for agricultural transport.

Deliverables: The following deliverables shall be expected from the Consultant:

Inception meeting.First draft report.Progress report.Detailed reports for each of the activity outlined in the scope of work. Reports are expected to be structured as follows: Executive Summary, Introduction,Objectives, Methodology, Outcomes/Findings, Recommendations, Challenges, Follow-Up actions, Conclusion. The main and final report should not be more than 45 pages with appropriate infographics.Register of all KII respondents interviewed and representatives of FGD participants.PowerPoint presentation summarizing key findings of the assessment, methodologies, and recommendationPhoto album of field works, and key moments captured during field activities.All the data collected on the course of the consultancy.

Timeline and Outputs. This assessment will commence in the first week of March 2025 and will be completed by May 20, 2025. A formal review of the final report with the Consultants will be organized by Propcom+.

Output 1 - March 10, 2025 : Initial report after contracting, including preliminary desk review of relevant project documents and existing literatureOutput 2 - March 17, 2025: Review of Inception Report by Propcom+ Team.Output 3 - April 30, 2025: Field works and primary data collection.Output 4 - May 3, 2025: Data collection and analysis.Output 5 - May 10, 2025: First draft reportOutput 6 - May 15, 2025: Report validation meetingOutput 7, May 20, 2025: Final draft report

Qualification and Experience Requirement.

The Lead Consultant (for a firm or a team of consultants) must have an advanced degree in Development Studies, Agricultural Engineering, Agricultural Economics, Agricultural Extension and Rural Development, Climate Change, Low Carbon Economic Development, Sustainable and Inclusive Development or other related fields.Cognate and requisite experience in cost-benefit and environmental impact assessments, low carbon project analysis, energy transition and fuel switching programmes, or green energy project management.Familiarity with EV technology in low-infrastructure settings.Experience in gender-responsive and inclusive research methodologies.Extensive experience in market system programmes and projects, preferably in northern Nigeria.Sound knowledge of policy issues related to energy efficiency and climate change.Excellent research, writing, and analytical skills.

Application: The subject line of the applications should be: Propcom+ EV Action Research. Interested and qualified consultants/firms are expected to submit their expression of interest (technical and financial proposal) to info.propcomplus@thepalladiumgroup.com by 5pm on February 17, 2025.

Proposals should include:

A cover letter indicating clear understanding of this Request for Proposal and the scope of work, and capacity statement of the firm or team of consultants.Detailed technical proposal, including methodologies for each of the items in the scope of work.Detailed CV(s) of consultant(s) (including company profile in the case of firms) who will undertake the assignment, including full name, telephone number(s).References of three previous clients on similar assignments.Evidence of previous similar assignments successfully undertaken.Proposed budget indicating clearly consultant’s fees and all logistical costs in local currency (NGN).

The scope of this consultancy includes all logistical arrangements necessary for the Consultant and her/his team to deliver the outlined works and should therefore be reflected in the financial proposal for this consultancy. For the avoidance of doubt, these costs include the cost of hiring and training of research assistants, transportation, accommodation, feeding, and other incidental needs of the team.

For additional information or questions on the consultancy please contact ase.taidi@thepalladiumgroup.com 

Annex: Key Research Questions

Terrain and Road Conditions
How do different EV types perform on varied terrains?
What is the efficiency and range under typical rural road conditions?Emissions and Environmental Impact
What are the emissions and environmental benefits compared to ICE vehicles?
How do vehicle size and weight affect emissions?Cost and Efficiency
What are the operational costs (charging, maintenance) of EVs vs. ICE vehicles?
How does charging infrastructure availability impact costs?Payload and Capacity
What are the load capacities of EVs.
How do they meet local agricultural transport needs?Social Acceptance and Usability
What are the preferences and barriers for men, women, and marginalized groups in EV adoption?
How do cultural norms affect EV use by women and excluded groups?Infrastructure and Support
How viable is the existing infrastructure for EV adoption?
What are the maintenance and support requirements for sustained use?