The Federal Government has announced plans to introduce a mandatory vehicle recycling fee from 2026 as part of efforts to modernise Nigeria’s automotive industry and formalise the vehicle recycling sector.
The Director-General of the National Automotive Design and Development Council, Joseph Osanipin, said the policy would be implemented through an approved End-of-Life Vehicle programme, requiring vehicle owners to pay a modest recycling fee at the point of registration.
Osanipin explained that the initiative would ensure environmentally safe disposal of vehicles that have reached the end of their useful lives while unlocking economic value from recyclable components, noting that over 85 per cent of parts from end-of-life vehicles remain reusable.
He added that the formal recycling ecosystem is expected to generate over ₦150bn annually and create thousands of jobs across dismantling, refurbishing, logistics and resale segments.
As part of the reforms, Osanipin disclosed that from 2026, all used vehicles imported into Nigeria would undergo mandatory pre-export certification to prevent the dumping of unroadworthy vehicles into the country, with exporters bearing the cost.
He also said the government is promoting the conversion of petrol and diesel vehicles to electric and compressed natural gas options, describing 2026 as a turning point for Nigeria’s automotive industry.
