The Federal Government, through the National Automotive Design and Development Council, has announced plans to formalise Nigeria’s vehicle recycling market and consequently introduce a new fee.
Director-General Joseph Osanipin said the policy will turn old, abandoned vehicles into an economic opportunity while addressing environmental and safety concerns.
Under the programme, a small fee will be added to vehicle registration to fund proper recycling, a model used in developed countries. Osanipin acknowledged that this may initially face public resistance.
He highlighted Nigeria’s existing informal market for second-hand parts, noting that over 85% of components from end-of-life vehicles can be reused or recycled. He added that a formal recycling ecosystem could create thousands of jobs and generate billions annually.
The announcement is coming on the heels of a rebound in vehicle imports, which rose to about ₦1.01 trillion in the first nine months of 2025. Despite this recovery, challenges such as high costs and import dependence continue to face the market.
Starting in 2026, used vehicles imported into Nigeria will require mandatory pre-export certification. This is expected to prevent the dumping of unsafe and rusted cars. Osanipin stated that the certification cost will be borne by exporters, not Nigerian buyers.
He appealed for media support in communicating the reforms, describing 2026 as a pivotal year for Nigeria’s auto industry transformation.
