Abuja, Nigeria – The Federal Government of Nigeria has announced plans to introduce a mandatory vehicle recycling fee starting in 2026, as part of a nationwide initiative to formalize vehicle disposal and promote environmental sustainability.
According to the National Automotive Design and Development Council (NADDC), the End-of-Life Vehicle (ELV) programme will require all vehicle owners to pay a recycling fee at the point of registration, ensuring that older vehicles are properly dismantled and recycled.
Objectives of the Vehicle Recycling Fee
The policy aims to:
- Formalize Nigeria’s informal vehicle recycling sector and generate additional government revenue.
- Encourage environmentally sound disposal of vehicles at the end of their lifecycle.
- Reduce abandoned vehicles, thereby improving safety and environmental conditions in urban areas.
Impact on Vehicle Importers and Owners
Starting 2026, all used vehicles imported into Nigeria will undergo mandatory pre-export certification, aimed at reducing the influx of heavily worn vehicles. Vehicle owners will contribute to a fund supporting recycling operations, similar to international best practices.
Economic and Environmental Benefits
The FG projects that the initiative could:
- Create thousands of jobs in vehicle dismantling, refurbishment, logistics, and spare parts resale.
- Boost Nigeria’s circular economy, allowing for more efficient reuse of auto parts.
- Generate over ₦150 billion annually from the recycling fee.
This move is part of broader automotive sector reforms planned for 2026, which also include enhanced standards for vehicle imports and support for alternative fuel technologies.
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