For years, abandoned vehicles have dotted roadsides, mechanic villages, and open spaces across Nigeria, rusting away, leaking oil, and quietly adding to the country’s environmental burden. Now, the Federal Government says it wants to turn that long-standing problem into an opportunity.
Nigeria plans to formally tap into its largely informal vehicle recycling market, with projections of over ₦150 billion in annual revenue from 2026, as part of reforms aimed at modernising the automotive industry and reducing environmental waste.
The plan was disclosed by the National Automotive Design and Development Council (NADDC), whose Director-General, Joseph Osanipin, said the move will be driven by a fully approved End-of-Life Vehicle (ELV) programme.
At its core, the policy seeks to address a familiar problem: what happens to vehicles when they can no longer be used.
Osanipin explained that Nigeria’s streets are already paying the price for the absence of a proper disposal system, as old and damaged vehicles are often abandoned, stripped for parts, or left to decay in the open.
“In developed countries, when you buy a new vehicle, during registration, you make a payment towards the disposal of that vehicle when it reaches the end of its life. When it gets to the end of its life, somebody has to be responsible for the disposal,” he said.
From Environmental Nuisance to Circular Economy
Under Nigeria’s planned model, vehicle owners will pay a small fee at the point of registration, which will go into funding safe disposal and recycling when the vehicle eventually reaches the end of its useful life. While the idea may initially meet resistance, the government believes it will help shift the country away from abandonment and waste.
The NADDC says Nigeria already has a strong base to build on. Across the country, the informal second-hand auto parts market — popularly known as the Belgian parts market — thrives largely because used parts are often more durable than new alternatives.
According to Osanipin, studies by the council show that over 85 per cent of components from end-of-life vehicles are still reusable or recyclable, meaning that most scrapped vehicles still hold significant value.
“If someone has an alternative, instead of abandoning vehicles by the roadside, you can turn them in and still make something out of them. The circular economy associated with this will be worth billions of naira every year, if well managed,” he said.
Beyond revenue, the recycling system is expected to create thousands of jobs across dismantling yards, refurbishment hubs, logistics chains, and component resale markets.
A Growing Auto Market, With Growing Waste Risks
The announcement comes at a time when Nigeria’s vehicle import market is rebounding. Recent data shows that passenger vehicle imports rose to about ₦1.01 trillion in the first nine months of 2025, up from ₦894 billion during the same period last year.
While this signals renewed demand, especially for fairly used “Tokunbo” vehicles, it also raises concerns about future waste. More vehicles on the road today means more end-of-life vehicles tomorrow, especially in a system without strict controls.
To address this, the NADDC plans to introduce mandatory pre-export certification for all used vehicles imported into Nigeria starting from 2026. The goal is to stop Nigeria from becoming a dumping ground for vehicles that are already unfit for use.
Osanipin said Nigeria remains one of the few African countries without such a requirement, making it attractive to exporters looking to offload scrap vehicles.
He recalled an encounter with a foreign exporter who admitted exploiting the gap.
“We will ensure that importers are held responsible so that whatever you are buying, you know what you are buying,” he said.
Importantly, the cost of certification will be borne by exporters, not Nigerian buyers.
Cleaner Vehicles, Cleaner Future
The reforms also extend beyond recycling. As part of efforts to reduce emissions and future-proof the sector, the NADDC plans to support the conversion of petrol and diesel vehicles to electric vehicles (EVs) and compressed natural gas (CNG).
Training programmes on EV technology, vehicle conversion, and alternative fuel systems are already underway for regulators and industry players.
“Capacity building is one of the major pillars of the NAIDP. “We have carried out training on vehicle conversion from PMS and diesel to CNG, as well as on electric vehicles,” Osanipin said.
The council has also developed National Occupational Standards for EV maintenance and CNG retrofitting, with structured certification expected to begin by 2026.
The council has also developed National Occupational Standards for EV maintenance and CNG retrofitting, with structured certification expected to begin by 2026.
Local Skills, Local Solutions
Osanipin said Nigerian engineers and students are making progress in local vehicle design, pointing to projects involving tricycles, buses, and electric campus shuttle buses developed in collaboration with universities and private partners.
“We want what is taught in our institutions to reflect industry realities. Producing even a few world-class auto engineers locally will have a significant impact on the economy,” he said
He stressed that component manufacturing, tyres, brake pads, filters, batteries, remains the real value driver in the auto sector, noting that Nigeria spends more on these parts annually than on importing complete vehicles.
A Turning Point for Auto Waste in Nigeria
As Nigeria positions itself to benefit from the African Continental Free Trade Area, the NADDC says it is engaging stakeholders to tackle infrastructure, financing, and policy gaps, while also pushing to turn the National Automotive Industry Development Plan into an Act of Parliament.
“Investment in the auto sector is huge. They will need an Act,” Osanipin said.
Acknowledging that change often comes with pushback, he appealed to the media for support.
“When the pushback comes, we need you to explain to Nigerians what we are trying to do and why,” he said, describing 2026 as a defining year for Nigeria’s automotive transformation.
Editorial1 year ago