Nigeria introduces end-of-life vehicle policy to boost circular economy and environmental protection

NIGERIA – The Nigerian government has officially unveiled its End-of-Life Vehicle (ELV) Regulation Policy, marking a critical step toward environmentally sound and economically rewarding automotive waste management.

The announcement was made during a stakeholder sensitization and advocacy workshop in Abuja, organized by the National Automotive Design and Development Council (NADDC).

The new ELV policy, which has already been passed into law, is designed to promote international best practices by addressing the growing environmental and public health concerns linked to abandoned, non-functional, or obsolete vehicles scattered across Nigerian roads.

According to Terseer Ugbor, Deputy Chairman of the Committee on Environment, the initiative holds significant economic promise, with a projected potential to generate over ₦100 billion (US$8.43bn) in recycling fees and inject over ₦1 trillion (US$84.35bn) in value into the national economy through the automotive recycling sector.

Ugbor highlighted the anticipated recycling of over 800,000 tonnes of ferrous and non-ferrous metals annually, as well as more than 2 million used tyres and 1 million lead-acid vehicle batteries.

The policy also targets the recovery of millions of litres of used engine oils, helping to mitigate pollution while providing feedstock for local industries. Additionally, the initiative is expected to create around 40,000 direct and indirect jobs.

The ELV regulation will be implemented in collaboration with the National Environmental Standards and Regulatory Enforcement Agency (NESREA), leveraging the existing framework of the National Environmental Motor Vehicle and Machinery Assembly Sector Regulations of 2011.

Joseph Osanipin, Director General of NADDC, underscored the importance of public engagement and education ahead of the full rollout, scheduled to begin in October 2025.

“Every stakeholder in the value chain has a role to play, from vehicle importers to recyclers, and we need all hands on deck,” he stated, estimating that the policy could generate at least ₦60 billion (US$5.06bn) annually.

This policy move places Nigeria in line with a growing list of countries tackling vehicle waste through structured regulation.

South Africa, for example, is exploring a nationwide ELV framework in consultation with auto industry players, while the European Union continues to tighten its ELV Directive to promote material reuse, extended producer responsibility, and circular design in vehicles.

Nigeria’s entry into this space signals a shift toward sustainable industrial development, promising to transform automotive waste into a vibrant value chain that supports environmental goals, public safety, and economic growth.

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