The federal government through the National Automotive Design and Development Council, NADDC, has expressed readiness to introduce a comprehensive End-of-Life Vehicle programme estimated to be worth over N150 billion annually, alongside stricter checks on all imported used cars starting from 2026.
Director General of NADDC, Mr. Oluwemimo Osanipin, made this known at a Media Parley with the Commerce and Industry Correspondents’ Association of Nigeria, CICAN, on Friday in Abuja, where he outlined reforms expected to reshape Nigeria’s automotive industry.
Osanipin described the planned measures as necessary for environmental protection, public safety, and economic growth, while admitting they would face initial public “pushback” due to changes in long-standing practices.
According to him, the End-of-Life Vehicle policy, already approved for implementation, will be modeled after systems used in developed countries. It will require a fee at the point of new vehicle registration to fund environmentally safe disposal when the vehicle reaches the end of its usable life.
“When you get to end-of-life, you can’t see all those abandoned vehicles by the road. It means somebody has to be responsible for the disposal,” Osanipin said.
He explained that the programme would operate as a scrap-to-cash system, allowing vehicle owners to benefit financially when they turn in old vehicles instead of abandoning them. He added that the circular economy linked to vehicle recycling could generate over N150 billion every year.
“It means when a vehicle gets to that end-of-life, the owner turns them in,” he said.
“And when they turn them in, the people that are going to, the recycling firms, we separate them, pull out all those second-hand parts that can still be used, and develop what they call second-hand markets. So internally, we also can develop our own second-hand markets through this.”
Osanipin further noted that more than 85 percent of vehicle parts remain useful at end-of-life and can be recycled, creating jobs across collection, dismantling, resale, and manufacturing value chains.
“It means if someone has a vehicle, you can turn it in. Instead of abandoning those vehicles by the roadside, you can turn it in and still make something out of it. And the circular economy associated to that is going to be billions of Naira,” he said.
On vehicle imports, the NADDC boss disclosed that the council will begin enforcing mandatory pre-export certification for all used vehicles brought into Nigeria. He said this standard practice exists in several African countries but is currently missing locally.
Osanipin said the policy will curb the dumping of unsafe, rusted, and end-of-life vehicles into Nigeria. He recalled a meeting with a foreign exporter who admitted sending eight containers of end-of-life vehicles to Nigeria because “that’s where we can make the highest profit.”
“We will ensure that we hold this importer responsible so that whatever you are buying, you know what you are buying,” he said, adding that exporters, not Nigerian buyers, would bear certification costs.
Looking ahead, Osanipin said the council is preparing for a future dominated by electric vehicles, EVs. He confirmed that National Occupational Standards for EV technician training and certification have been released to build local maintenance capacity.
He cited recent Chinese policies phasing out internal combustion engines as an urgent signal for Nigeria to adapt and protect its automotive market from being left behind.
On local manufacturing, Osanipin said progress has been made in producing components such as tires, brake pads, and batteries, with plans to support local firms against cheaper but often inferior imports.
He also announced upcoming prototypes, including a Nigerian-designed tricycle, a locally developed bus, and a university-led electric campus bus project.
Osanipin revealed plans to convert the Nigerian Automotive Industry Development Plan, NAIDP, from a policy framework into law.
“Investment in auto is huge. They will need an act,” he said, confirming that a draft Auto Industry Bill will be submitted to the National Assembly soon.
Appealing for media support, he compared the reforms to a painful but necessary injection.
“When the pushback comes, we need you to explain to Nigerians what we are trying to do and the purpose why we are doing that,” Osanipin said, stressing that 2026 would mark a turning point for Nigeria’s automotive industry.
