Car recycling market to yield N150bn yearly – FG

The Federal Authorities has introduced plans to faucet into Nigeria’s largely casual car recycling market, projecting annual revenues of over N150bn from 2026, as a part of sweeping reforms to modernise the nation’s automotive business.

The Nationwide Automotive Design and Improvement Council disclosed this in a press release issued on Sunday, with the Director-Normal, Joseph Osanipin, saying the initiative could be pushed by a complete Finish-of-Life Car programme already accredited for implementation.

Osanipin defined that the coverage would formalise the recycling of autos which have reached the tip of their helpful lives, turning what’s presently an environmental and security burden into a significant financial alternative.

“In developed international locations, whenever you purchase a brand new car, throughout registration, you make a fee in direction of the disposal of that car when it reaches the tip of its life,” he stated.

“When it will get to the tip of its life, any person must be accountable for the disposal.”

In response to him, Nigeria’s programme will comply with an identical mannequin, requiring a modest payment on the level of car registration to fund environmentally sound disposal and recycling, a transfer he acknowledged might initially face public resistance.

Osanipin famous that Nigeria already has a thriving casual second-hand auto components market, generally known as the Belgian components market, pushed largely by sturdiness and high quality issues round new components.

He stated research by the council confirmed that over 85 per cent of parts from end-of-life autos stay reusable or recyclable, creating a robust basis for a proper round economic system.

“If somebody has another, as an alternative of abandoning autos by the roadside, you possibly can flip them in and nonetheless make one thing out of them,” he stated. “The round economic system related to this shall be value billions of naira yearly, if properly managed.”

He added that past income era, the recycling ecosystem would create 1000’s of jobs throughout dismantling, refurbishing, logistics, and part resale segments.

The announcement comes in opposition to the backdrop of a rebound in Nigeria’s car import market this 12 months. The PidomNigeria not too long ago reported that the worth of passenger motor automobile imports rose to about N1.01tn within the first 9 months of 2025, up from roughly N894bn in the identical interval final 12 months, signalling a resurgence in demand as overseas alternate market stability improves and importer confidence returns.

Knowledge from the Nationwide Bureau of Statistics confirmed that the restoration solely gained traction within the second half of the 12 months, with the third quarter posting a pointy uptick in import worth that greater than offset slower exercise earlier within the 12 months.

The rebound underscores the resilience of Nigeria’s auto market, particularly the pretty used (“Tokunbo”) section, but in addition highlights persistent challenges, together with excessive touchdown prices, foreign money publicity, and structural dependence on imports.

As a part of the reforms, the NADDC will introduce obligatory pre-export certification for all used autos imported into Nigeria from 2026, a measure geared toward curbing the dumping of rusted and end-of-life autos into the nation.

Osanipin stated Nigeria was presently one of many few African international locations with out such a requirement, making it a vacation spot of alternative for exporters in search of to dump unroadworthy autos.

He recounted a gathering with a overseas exporter who admitted delivery eight containers of end-of-life autos to Nigeria as a result of it provided the “highest revenue.”

“We’ll make sure that importers are held accountable in order that no matter you’re shopping for, you realize what you’re shopping for,” he stated, including that the price of certification could be borne by exporters, not Nigerian customers.

In a parallel push to future-proof the sector, Osanipin unveiled plans to transform petrol and diesel-powered autos to electrical autos and compressed pure fuel, consistent with the Nationwide Automotive Trade Improvement Plan.

He stated the council had commenced intensive coaching programmes on EV expertise, car conversion, and various gasoline programs for each regulators and business gamers.

“Capability constructing is among the main pillars of the NAIDP,” he stated. “We have now carried out coaching on car conversion from PMS and diesel to CNG, in addition to on electrical autos.”

He disclosed that the council had developed Nationwide Occupational Requirements for EV upkeep and CNG retrofitting, with structured certification programmes anticipated to start by 2026.

Osanipin stated Nigerian engineers and college students had been making notable progress in native car design, citing initiatives involving tricycles, buses, and electrical campus shuttle buses developed in collaboration with 12 universities and personal sector companions.

“We wish what’s taught in our establishments to mirror business realities,” he stated. “Producing even just a few world-class auto engineers regionally could have a big influence on the economic system.”

He pressured that part manufacturing stays the actual worth driver within the automotive sector, noting that Nigeria spends extra yearly on tyres, brake pads, filters, and batteries than on importing full autos.

The council, he stated, was participating stakeholders to deal with infrastructure, financing, and coverage bottlenecks dealing with part producers, particularly as Nigeria positions itself to profit from the African Continental Free Commerce Space.

Osanipin additionally revealed plans to remodel the NAIDP from a coverage doc into an Act of Parliament, saying {that a} draft Auto Trade Invoice would quickly be offered to the Nationwide Meeting. “Funding within the auto sector is large,” he stated. “They’ll want an Act.”

Acknowledging that a few of the reforms would face resistance, Osanipin appealed to the media for assist in explaining the insurance policies to the general public. “When the pushback comes, we’d like you to elucidate to Nigerians what we try to do and why,” he stated, describing 2026 as a pivotal 12 months for Nigeria’s automotive business transformation.