The Federal Government has approved a comprehensive End-of-Life Vehicle (ELV) Programme aimed at reforming Nigeriaโs automotive sector, boosting revenue, and protecting the environment.
Government estimates indicate the programme could generate over โฆ150 billion annually by formalising vehicle recycling and disposal across the country.
A recycling fee will be introduced to support the environmentally safe disposal and recycling of vehicles that are no longer roadworthy, reducing pollution and public health risks.
The initiative is modelled after international best practices, aligning Nigeriaโs auto industry with global environmental and safety standards.
Despite rising costs and heavy reliance on imports, fairly used vehicles continue to drive Nigeriaโs automobile market.
From 2026, all used vehicles destined for Nigeria must undergo pre-export certification to prevent the importation of end-of-life or unsafe vehicles into the country.
The government plans to convert the National Automotive Industry Development Plan into an Act of Parliament, strengthening regulation and long-term industry growth.
Authorities have described 2026 as a pivotal year for the reform and modernisation of Nigeriaโs automotive industry.