FG Begins Vehicle Recycling Enforcement October, Eyes N60bn Annually

The federal government will begin full enforcement of Nigeria’s End-of-Life Vehicle (ELV) Waste Recycling Regulation in October 2025, as it accelerates plans to establish a national system for dismantling and recycling obsolete automobiles—an initiative expected to generate over N60 billion annually and create more than 40,000 jobs.

Director-general of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, disclosed the timeline at a high-level stakeholder sensitisation and advocacy event held in Abuja. The event was part of a broader nationwide campaign to mobilise regulatory agencies, state governments, private-sector recyclers, and investors in support of the ELV initiative, which he described as a key pillar of Nigeria’s green industrialisation and circular economy transition.

He said the regulation represents a critical shift in the country’s environmental and industrial policy frameworks, aiming to transform aging and derelict vehicles from environmental liabilities into industrial assets.

“This is not a symbolic regulation,” Osanipin said. “It is a systemic economic and ecological intervention that will reposition Nigeria’s automotive ecosystem. We are establishing an industrial recycling framework that supports green jobs, drives local investment, unlocks sub-national revenue, and cuts down urban pollution—all at once.”

Unveiled on March 5, 2025, by the minister of state for industry, Senator John Owen, the ELV Waste Recycling Regulation mandates the formal identification, deregistration, dismantling, and environmentally sound disposal of derelict vehicles. The policy also sets out standards for recovering reusable materials and certifying ELV processing operations nationwide.

Osanipin noted that the policy represents both an environmental obligation and a strategic industrial opportunity for Nigeria.

“This regulation is not just about scrapping cars,” he said. “It’s about building a national circular economy within the automotive sector. From used vehicles to usable materials, the value chain is long and rich—and it must be formalised.”

To ensure smooth and coordinated implementation across all levels of government, the NADDC chief announced the formation of a multi-agency ELV Steering Committee.

The committee will include representatives from the Federal Inland Revenue Service (FIRS), State Internal Revenue Services, Vehicle Inspection Offices (VIO), Federal Road Safety Corps (FRSC), Nigeria Customs Service, Nigeria Police, and the private recycling sector.

“The committee will coordinate implementation activities, monitor regulatory compliance, resolve inter-agency conflicts, and recommend policy or legal adjustments as needed,” he said.

In addition to regulatory enforcement, he said the NADDC is working with the Joint Tax Board and state tax authorities to design fiscal incentives aimed at encouraging voluntary vehicle retirement and responsible recycling practices. These incentives are also expected to improve revenue tracking from ELV-related services and dismantling operations.

“The ELV regulation is a game-changer in our green industrialisation agenda,” Osanipin said. “It will help transition the country from informal and often hazardous vehicle disposal methods to a regulated, investment-friendly framework anchored on sustainability and innovation.”

According to him, the ELV policy will directly impact several sectors—including automotive services, logistics, inspection, and material recovery by creating employment opportunities and encouraging private-sector investment in recycling infrastructure.