Abuja, Nigeria
The Nigerian government has unveiled an ambitious plan to formalise its chaotic vehicle recycling market, projecting it will generate over N150bn ($90m) in annual revenue by 2026. The move is part of a sweeping set of reforms aimed at modernising the country’s automotive sector and ending its reputation as a “dumping ground” for unroadworthy foreign vehicles.
Central to the plan is a new “End-of-Life Vehicle” (ELV) programme, which will require car owners to pay a modest fee during registration to fund environmentally sound disposal. Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC), stated that the initiative would transform an environmental hazard into a “circular economy” goldmine. Studies suggest that over 85% of components from scrapped cars in Nigeria—currently traded in informal “Belgian” parts markets—remain reusable or recyclable.
Crackdown on ‘Rusty’ Imports
Nigeria remains heavily dependent on second-hand imports, colloquially known as “Tokunbo” cars. Recent data shows that the value of passenger car imports hit a staggering N1.01tn in the first nine months of 2025 alone. To protect consumers and the environment, the government will introduce major changes starting in 2026:
- Pre-Export Certification: All used vehicles must be certified as roadworthy before being shipped to Nigeria.
- Holding Exporters Accountable: The cost of this certification will be borne by foreign exporters rather than local consumers.
- Ending “Dumping”: The NADDC aims to stop foreign traders from shipping “containers of junk” to Nigeria simply because it offers the highest profit margin due to lack of regulation.
The Green Shift: EVs and CNG
Beyond recycling, the government is pushing to “future-proof” the industry by pivoting away from traditional petrol and diesel engines.
“Capacity building is a major pillar,” Mr Osanipin said, noting that the council has already begun training engineers and students across 12 universities to convert older vehicles to Electric Vehicle (EV) and Compressed Natural Gas (CNG) systems.
National occupational standards have been set for EV maintenance, and the government is currently drafting an Auto Industry Bill to turn these policies into permanent law, providing the legal certainty required to attract large-scale international investment.
📈 Nigeria’s Auto Market: Key Figures (2025)
| Metric | Figure |
| Projected Recycling Revenue (2026) | N150bn+ annually |
| Total Car Import Value (Jan-Sept 2025) | N1.01 trillion |
| Component Reusability Rate | 85%+ |
| Target Date for New Regulations | January 2026 |
The reforms are expected to create thousands of jobs in dismantling, logistics, and component refurbishment, positioning Nigeria to become a regional automotive hub under the African Continental Free Trade Area.
Add Comment