The Federal Government has announced plans to tap into Nigeria’s largely informal vehicle recycling market, projecting annual revenues of over N150bn from 2026, as part of sweeping reforms to modernise the country’s automotive industry.
The National Automotive Design and Development Council disclosed this in a statement issued on Sunday, with Director-General Joseph Osanipin stating that the initiative would be driven by a comprehensive End-of-Life Vehicle programme already approved for implementation.
According to Osanipin, the policy would formalise the recycling of vehicles that have reached the end of their useful lives, turning what is currently an environmental and safety burden into a major economic opportunity.
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.
According to him, Nigeria’s programme will follow a similar model, requiring a modest fee at the point of vehicle registration to fund environmentally sound disposal and recycling, a move he acknowledged may initially face public resistance.
He said that Nigeria already has a thriving informal second-hand auto parts market, commonly referred to as the Belgian parts market, driven largely by durability and quality concerns around new parts.
Osanipin noted that studies by the council showed that over 85 per cent of components from end-of-life vehicles remain reusable or recyclable, creating a strong foundation for a formal circular economy.
“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.
Leave a Reply