Used car dealerships in Nigeria have said the newly introduced Vehicle Conformity Assessment Programme (VehCAP), which imposes stricter checks on imported vehicles and auto parts, is unlikely to significantly increase vehicle import costs or retail prices.
Lagos-based car importers who spoke to Nairametrics said the policy is a timely move aimed at tightening regulation and addressing long-standing concerns around substandard vehicle imports.
They added that any cost impact is expected to be minimal, as documentation and certification requirements already form part of standard import procedures.
The VehCAP policy, jointly introduced by the Standards Organisation of Nigeria (SON) and the National Automotive Design and Development Council (NADDC), was announced to take effect from March 31, 2026, though implementation at ports has yet to commence, with no visible enforcement directive issued to agencies, including the Nigeria Customs Service.
What they are saying
The Chief Executive Officer of Unique Motors, Adebiyi Adeshina, told Nairametrics that the VehCAP policy is unlikely to significantly affect vehicle prices, noting that most imports already follow established documentation and valuation processes.
He explained that imported vehicles typically come with either clean or salvage titles, where clean titles indicate no major damage history, while salvage titles refer to vehicles declared total losses due to accidents or flooding.
According to him, the policy may introduce additional compliance steps but is not expected to materially change vehicle prices.
- “I don’t think the policy will significantly impact the cost of cars. Normally, as a car importer dealing in used vehicles from abroad, you already get a certificate of title with the car.” Adeshina said.
- “So once you have a title for the vehicle, the source can be verified by SON and NADDC even before shipment. To me, the fee for certification and approval will not be too much, and as such would not drastically increase the cost of importing cars,” he added.
Also speaking to Nairametrics, the Chief Executive Officer of Stock Motorcars Limited, Bassey Esu, said the policy’s impact on prices would likely remain marginal, as compliant importers already operate within structured sourcing systems.
He noted that most dealers already handle vehicles with verified histories, such as clean Carfax records, meaning the policy mainly adds certification rather than new cost pressure.
- “The increase in price of cars would be marginal because importers with clean vehicle history records would continue operating as they currently do, aside from certification fees,” he said.
He said any price adjustments would likely be limited and driven more by compliance costs than structural market changes.
Importers see market restructuring under VehCAP
Used car importers said the VehCAP policy is expected to reshape Nigeria’s automotive market by tightening standards and reducing the inflow of substandard and accidented vehicles.
Adeshina noted that the used vehicle market has long been driven by accidented and salvage imports, with some dealers focusing on damaged units for resale or parts, a trend he said has distorted pricing, sourcing, and quality standards.
He added that a more structured framework like VehCAP would help standardise the market, reduce the influence of unregulated dealers, and improve the overall quality of vehicles available to consumers.
Also speaking to Nairametrics, Esu said the policy would lead to a more disciplined import structure, where only vehicles with verifiable histories and proper documentation enter the market.
He noted that pricing distortions in the used-vehicle segment stem from salvage imports, often bought for as low as about $1,300 for models such as Toyota vehicles, compared to $5,000–$6,000 for clean-title equivalents in the U.S., but sometimes resold locally at near-clean-title prices after repairs.
Esu warned that limiting salvage imports could reshape business economics, as dealers in that segment would need significantly higher capital to source clean-title vehicles, a shift he described as “equity erosion” for operators reliant on cheaper salvage stock.
He said rather than sharply increasing prices, the policy would mainly correct existing distortions, with adjustments expected to be gradual and driven by compliance costs rather than structural shocks.
Adeshina also raised concerns over implementation, warning that unclear enforcement timelines could create uncertainty for importers, especially for vehicles already in transit.
He added that weak coordination and possible bureaucratic delays at ports could affect the smooth rollout if enforcement processes are not clearly defined.
Insights from an indigenous automotive assembler on VehCAP
Beyond used-car imports, local assemblers say the VehCAP policy could reshape Nigeria’s automotive manufacturing sector by strengthening assembly operations and improving investor confidence.
The Chief Executive Officer of ROXETTES Motors, Kaycee Orji, told Nairametrics that the policy is a turning point that could redefine competition in the industry.
He said stricter inspection and certification rules would address long-standing challenges caused by the influx of substandard used vehicles and unverified parts.
- “Honestly, I see VehCAP as a major turning point. Local assemblers have long competed with substandard used vehicles and unverified parts, which made scaling difficult,” he said.
- Orji added that the policy would help formalise the market and raise standards across the value chain.
- “With proper inspection and certification, the market will become more structured, pushing assemblers to improve quality because every component must meet standards,” he added.
He noted that reducing low-quality imports would improve competitiveness for locally assembled vehicles.
Orji also said the policy could boost demand for certified components such as braking, suspension, and electrical systems, while strengthening investor confidence and long-term industry growth.
What VehCAP is and who it applies to
Nairametrics obtained details of the newly introduced Vehicle Conformity Assessment Programme (VehCAP) from an official overview document by the Standards Organisation of Nigeria (SON) and the National Automotive Design and Development Council (NADDC), outlining the policy’s structure and intent.
VehCAP is a regulatory framework designed to strengthen safety, standards, and market integrity in Nigeria’s automotive sector by ensuring only certified vehicles and components enter the country.
Jointly implemented by SON and NADDC under the theme “Certified Automotive Products. Safer Nigerian Roads,” the policy operates on the slogan “No Certification, No Entry.”
It applies across the automotive value chain, covering importers of new and used vehicles (including tokunbo units), licensed dealers, OEM representatives, parts importers, and local assemblers operating Completely Knocked Down (CKD) and Semi Knocked Down (SKD) systems. It also covers safety-critical components such as tyres, brakes, suspension systems, engines, transmissions, and electrical parts.
The policy is aimed at addressing concerns around substandard imports, unsafe vehicles, and non-compliant components linked to road safety risks in Nigeria.
How VehCAP works and the standards guiding it
VehCAP is a mandatory pre-shipment inspection and certification system requiring vehicles and components to be verified before entry into Nigeria.
The process begins with exporters or manufacturers applying through SON-approved Conformity Assessment Bodies (CABs), followed by inspection and laboratory testing in the country of origin against Nigerian Industrial Standards and approved international benchmarks.
Where requirements are met, a Certificate of Conformity is issued, leading to a Vehicle Product Certificate (VPC) required for customs clearance. Shipment-specific certificates confirm that consignments match approved specifications, while non-compliant goods are rejected or flagged for regulatory action.
The framework is supported by documentation such as Vehicle Product Certificates, Vehicle Shipment Certificates, and Vehicle Release Certificates, with similar certification for automotive parts through product and supplier certificates.
VehCAP is guided by Nigerian roadworthiness and safety standards aligned with international frameworks such as UNECE, covering inspection requirements, testing procedures, examiner qualifications, and vehicle test station codes.
Key standards include ARS 1355-1-2021 (roadworthiness of used vehicles), ARS 1355-2-2021 (roadworthiness before and after entry into service), and ARS 1355-3-2021 (supporting assessment guidelines).
Others are ARS 1355-4-2021 (vehicle examiners), ARS 1355-5-2021 (testing equipment), ARS 1355-6-2021 (roadside assessment), and ARS 1357-2021 (vehicle test station code of practice).
Enforcement yet to begin weeks after the March 31 effective date
Despite being announced as effective from March 31, 2026, the implementation of the VehCAP policy has yet to commence at Nigeria’s ports of entry, according to both industry operators and a confirmation from the Nigeria Customs Service (NCS).
Speaking to Nairametrics on condition of anonymity, a Customs official said there has been no operational directive guiding the implementation of the VehCAP framework at the ports.
According to the official, no circular or internal memo has been issued to officers regarding the policy, meaning there are currently no instructions to carry out compliance checks or enforcement tied to VehCAP requirements.
As a result, the official said the system is not being enforced at any port of entry at this time, despite its formal introduction by the Standards Organisation of Nigeria (SON) and the National Automotive Design and Development Council (NADDC).
Recommendations from stakeholders
Stakeholders said VehCAP’s success will depend on clear timelines, digital systems, and coordinated enforcement across regulatory agencies.
The Chief Executive Officer of ROXETTES Motors, Orji, called for a fully digital and transparent implementation process linked to customs and documentation systems to reduce delays.
He also stressed consistent enforcement of the “No Certification, No Entry” rule and urged the government to strengthen local testing and inspection infrastructure to build domestic capacity and reduce compliance costs.
Used car importers, including the Chief Executive Officer of Unique Motors, Adeshina, called for a clear implementation timeline and stronger coordination between SON, NADDC, and the Nigeria Customs Service to ensure smooth rollout at ports. He also recommended a digital portal for document submission, approvals, and payments to improve transparency, reduce delays, and limit human interference in the process.
The Chief Executive Officer of Stock Motorcars Limited, Esu, said the policy must not become an avenue for rent-seeking or administrative exploitation, warning that this would undermine its purpose.
He added that implementation should focus on improving vehicle quality and addressing distortions in the used-car market, particularly the influx of salvage vehicles that bypass standards.
Collectively, stakeholders said the policy’s effectiveness will depend on transparent, efficient, and technology-driven implementation that avoids bureaucratic bottlenecks while preserving market fairness.
What you should know
- Nigeria’s passenger car imports rose to N1.58 trillion in 2025, reflecting a recovery in demand despite their small share of total imports. Data from the National Bureau of Statistics (NBS) showed passenger motor car imports rose by 24.64% year-on-year from N1.26 trillion in 2024.
- Quarterly data showed continued dominance of the United States in used vehicle imports, with inflows rising steadily across 2025.
- US vehicle imports rose from N93.51 billion in Q1 to N99.18 billion in Q2, surged above N220 billion in Q3 across categories, and peaked at N197.90 billion in Q4.
- This highlights Nigeria’s sustained reliance on the United States for used and high-capacity vehicle imports.
- In December 2025, the National Automotive Design and Development Council (NADDC) announced the full implementation of its End-of-Life Vehicle (ELV) policy framework scheduled for 2026 to improve automotive waste management, reduce pollution, and create jobs.
- The objectives of the VehCAP framework align with the ELV policy, as both are designed to strengthen vehicle standards, improve safety compliance, and formalise Nigeria’s automotive value chain.
