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Nairametrics
Home Sectors Manufacturing

Nigeria to implement end-of-life vehicle policy in 2026 

Caleb Obiowo by Caleb Obiowo
December 24, 2025
in Manufacturing, Sectors, Transportation
Customs generated over N500 million from e-auction of seized vehicles between Jan.16 and Feb.13 
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Nigeria will begin the full implementation of its End-of-Life Vehicle (ELV) Policy in 2026, aiming to improve automotive waste management, reduce environmental pollution, and create jobs across the country.

The policy will enforce regulations on vehicle manufacturers, importers, owners, and recycling operators to ensure proper handling and disposal of old and decommissioned vehicles.

This information was obtained from a document provided by the National Automotive Design and Development Council (NADDC), which outlines the government’s plans for nationwide rollout.

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What NADDC is saying 

According to NADDC, the 2026 rollout is aimed at fully activating existing End-of-Life Vehicle and automotive waste recycling regulations across the country.

The council said this will be driven through awareness and sensitisation campaigns to educate vehicle owners, mechanics, transport unions, and the public on the environmental, economic, and safety benefits of ELV recycling.

Capacity-building programmes will also be introduced to train recycling plant operators and auto technicians on safe, standardised, and environmentally sound ELV handling and dismantling practices.

“The implementation of the End-of-Life Vehicle (ELV) Policy in 2026 will focus on putting the approved ELV and other automotive waste recycling regulations into full operation across Nigeria,” the document read in part. 

It added, “Overall, the 2026 implementation of the ELV Policy aims to reduce environmental pollution. improve automotive waste management, create jobs, generate revenue, and support sustainable development of the Nigerian automotive sector.” 

Licensing, data management, and pilot projects 

NADDC further explained that licensing and certification of ELV collectors, dismantlers, and recycling plants will be carried out in collaboration with the National Environmental Standards and Regulations Enforcement Agency (NESREA).

A national data management system will also be established to track vehicles, recycling facilities, and trained technicians, supporting monitoring, compliance, and future planning.

In addition, the council plans to promote research and development in vehicle recycling and establish a pilot ELV recycling plant to test the viability, safety, and efficiency of operations.

Rising vehicle imports add urgency to ELV policy 

Nigeria’s passenger vehicle imports have surged despite higher exchange rates and inflation.

In the third quarter of 2025, imports reached N527 billion, more than double the N254.6 billion recorded in the first quarter and well above the N224.5 billion in the second quarter. This pushed total imports to about N1 trillion in the first nine months of 2025, up from N894 billion over the same period in 2024.

Used vehicles accounted for N234.7 billion, with N184 billion imported from the United States alone. The data highlight Nigeria’s heavy reliance on imported vehicles from the United States, Dubai, and South Africa, reinforcing the need for a structured end-of-life vehicle management system.

What you should know 

In earlier reports, the Director-General of the National Automotive Design and Development Council, Joseph Osanipin, said the End-of-Life Vehicle policy is designed to formalise Nigeria’s informal vehicle recycling market and modernise the automotive sector.

He said the programme, approved for implementation from 2026, could generate over N150 billion annually, create jobs, and turn abandoned vehicles into economic assets, with studies showing that more than 85 per cent of ELV components are reusable or recyclable.

He also said Nigeria will introduce mandatory pre-export certification for used vehicles from 2026 to curb the importation of unroadworthy and end-of-life vehicles

Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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