The Federal Government has announced plans to formalise Nigeria’s largely informal vehicle recycling market, projecting annual revenues of over N150bn from 2026 as part of efforts to modernise the automotive industry.
The National Automotive Design and Development Council (NADDC) disclosed this on Sunday, with its Director-General, Joseph Osanipin, saying the move would be driven by an approved End-of-Life Vehicle (ELV) programme.
Osanipin explained that the policy would regulate the recycling of vehicles that have reached the end of their useful lives, transforming an environmental and safety challenge into an economic opportunity.
Under the programme, vehicle owners would pay a modest fee at registration to fund environmentally sound disposal and recycling.
He noted that more than 85 per cent of components from end-of-life vehicles are reusable or recyclable, building on Nigeria’s thriving informal second-hand auto parts market. According to him, a properly managed circular economy could generate billions of naira yearly and create thousands of jobs across dismantling, refurbishing, logistics and component resale.
The announcement comes amid a rebound in Nigeria’s vehicle import market. Data cited by The PUNCH showed that passenger vehicle imports rose to about N1.01tn in the first nine months of 2025, up from N894bn in the same period of 2024, reflecting improved foreign exchange stability and renewed importer confidence.
As part of the reforms, the NADDC will introduce mandatory pre-export certification for all used vehicles imported into Nigeria from 2026 to curb the dumping of unroadworthy and end-of-life vehicles.
Osanipin said exporters, not Nigerian consumers, would bear the certification cost.
He added that the council plans to expand vehicle conversion to electric vehicles and compressed natural gas, supported by nationwide training programmes. Osanipin also revealed plans to present an Auto Industry Bill to the National Assembly, describing 2026 as a pivotal year for transforming Nigeria’s automotive industry.
