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Nigeria to launch scrap-to-cash vehicle policy in 2026

The National Automotive Design and Development Council, NADDC, has expressed readiness to introduce a comprehensive “End-of-Life Vehicle” programme and stringent new checks on all imported used cars beginning from 2026.

Director General of NADDC, Mr. Oluwemimo Osanipin, disclosed this at a Media Parley with Commerce and Industry Correspondents’ Association of Nigeria, CICAN, on Friday in Abuja.

Osanipin described the proposed reforms as a critical step for environmental protection, public safety, and economic development, but warned they would initially face significant public “pushback.”

According to him, the End-of-Life Vehicle policy, already approved for implementation, would model on systems in developed nations, as it will require a fee at the point of new vehicle registration to fund the future environmentally sound disposal of that car.

“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,” he stated. 

He described the policy as a “scrap-to-cash” opportunity for owners and a job-creation engine, estimating the circular economy around vehicle recycling could be worth over N150 billion annually.

“It means when a vehicle gets to that end-of-life, the owner turns them in.

“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. So that’s another advantage.

“And the other advantage of end-of-life, it means a lot of the parts on the vehicle can still be recycled. Because we’ve seen that over 85% of the parts on the vehicle are still useful. And again, it can generate a lot of employment.

“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.

He therefore noted that the NADDC will enforce mandatory pre-export certification for all used vehicles imported into Nigeria, a practice standard in other African nations but currently absent in the country. 

Osanipin further stated that this move will directly target the dumping of dangerous, rusted, and end-of-life vehicles from abroad into Nigeria.

The NADDC boss cited a meeting with an exporter who admitted to shipping eight containers of end-of-life vehicles to Nigeria solely 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 stated, adding that the cost of certification would be borne by exporters, not Nigerian buyers.

Looking forward, Osanipin detailed extensive preparations for electric vehicles, EVs, including the release of National Occupational Standards for technician training and certification. 

He cited recent Chinese policies phasing out internal combustion engines as a urgent reason for Nigeria to develop local EV maintenance capacity and safeguard its market.

On local production, the DG NADDC noted that progress has been made in component manufacturing, such as tires, brake pads, and batteries, and pledged policy support to enhance competitiveness against often inferior, cheaper imports. 

He also announced upcoming prototypes, including a Nigerian-designed tricycle and bus, and a university-led project to develop an electric campus bus.

Osanipin said there was a push to transform the Nigerian Automotive Industry Development Plan, NAIDP from a policy into an Act of Parliament. 

“Investment in auto is huge. They will need an act,” Osanipin explained, adding that a draft “Auto Industry Bill” will be presented in the coming months to the National Assembly.

He appealed to the media for partnership, comparing the new policies to a necessary but painful 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, emphasising that 2026 would be a pivotal year for the industry’s transformation.

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