The Federal Government has announced plans to formalise Nigeria’s largely informal vehicle recycling sector, projecting annual revenues of over ₦150 billion from 2026 as part of efforts to reform and modernise the automotive industry.
The National Automotive Design and Development Council (NADDC) disclosed this in a statement on Sunday. Its Director-General, Joseph Osanipin, said the initiative would be implemented through an approved End-of-Life Vehicle (ELV) programme.
According to Osanipin, the policy will require vehicle owners to pay a modest recycling fee at the point of registration to fund the safe disposal and recycling of vehicles that have reached the end of their useful lives.
He explained that over 85 per cent of components from end-of-life vehicles are reusable or recyclable, providing a strong foundation for a structured circular economy and job creation across dismantling, refurbishing, logistics and parts resale.
As part of the reforms, the NADDC will also introduce mandatory pre-export certification for all used vehicles imported into Nigeria from 2026 to prevent the dumping of unroadworthy and end-of-life vehicles. He noted that the cost of certification would be borne by exporters.
Osanipin added that the reforms align with the National Automotive Industry Development Plan, which includes vehicle conversion to electric and compressed natural gas systems, capacity building, and local component manufacturing.
He described 2026 as a pivotal year for Nigeria’s automotive sector, stressing that stakeholder engagement and public understanding would be key to successful implementation.
Source: Throwback Times
