Close Menu

    Subscribe to Updates

    Get the latest news as they happen

    What's Hot

    Super Eagles set to go against Jordan in friendly match, await FIFA World Cup decision

    February 16, 2026

    Zaccheus Adedeji declares tax systems automated, digital, data-driven 

    February 16, 2026

    Zamfara State Inaugurates Landmark IDP Policy and Action Plan as UNDP, Northwest Forum Pledge Support

    February 16, 2026
    Facebook X (Twitter) Instagram
    Megastar Magazine
    • Politics

      NASS Reconvenes for Emergency Session on Electoral Act Amendments

      February 16, 2026

      Peter Obi officially launches Operation Rescue Nigeria” ahead of the 2027 elections, aligning the “Obidient” movement with the ADC platform.

      February 16, 2026

      INEC 2027 Election Dates Comply With Nigeria Constitution Calendar

      February 14, 2026

      FCT election: APC, ADC prepare for victory battle ahead of Feb 21

      February 13, 2026

      “Political interests transcend tribal sentiments in pursuit of national development and inclusion” – Oyemyke

      February 13, 2026
    • Entertainment
      1. People
      2. Events
      3. Fashion
      Featured
      Entertainment February 16, 2026

      Spotify Stream Purge Hits Afrobeats Giants, Sparks “Wiz Clean” Online Trend

      Recent

      Spotify Stream Purge Hits Afrobeats Giants, Sparks “Wiz Clean” Online Trend

      February 16, 2026

      “All My Love” Debuts as Lead Soundtrack for Anticipated Musical Film EVI

      February 16, 2026

      AFRIMA Stakeholders Gather in Abidjan for Landmark 10th Awards Parley

      February 15, 2026
    • Business

      Glo Offers Lavish Discounts, Excites Hearts With Valentine Smartphone promo, 18GB Data 

      February 13, 2026

      At Gateway Trade Fair, Dangote Charts Bold Course for Agricultural & Industrial Exports

      February 13, 2026

      UAC of Nigeria PLC Lists ₦54.03 Billion Bond On FMDQ Exchange Platform, Thereby Expanding Access To Capital

      February 7, 2026

      2026 Gateway International Fair: Dangote Champions Its Vision 2030 

      February 6, 2026

      Rite Foods Challenges Stakeholders On Clean Energy Adoption

      February 5, 2026
    • Health

      International Childhood Cancer Day Marked by Global Push for Early Detection and Survivor Support

      February 15, 2026

      Lagos Unveils ‘Zero Stigma’ Drive to Criminalize HIV Discrimination, Targets 2030 Eradication

      February 12, 2026

      NAFDAC Insists Ban on Sachet and PET Bottle Alcohol Remains in Force

      February 12, 2026

      NAFDAC Cracks Down on Counterfeit Medicine Syndicate, Seizing ₦3 Billion in Fake drugs and Cosmetics

      February 10, 2026

      Pad Me A Girl Empowerment Foundation, Access Bank Reach IDP Camps with “Access Pad Me A Girl 2.0” Outreach

      February 10, 2026
    • Culture

      Tinubu Hails Northwest Stability at Argungu as Dozens Feared Dead in Niger State Bandit Attacks

      February 15, 2026

      Obasanjo Calls for Urgent Preservation of Egba Heritage Ahead of 2026 Lisabi Festival

      February 11, 2026

      Argungu Fishing Festival Opens in Kebbi, Celebrating Centuries-Old Tradition

      February 11, 2026

      Nigeria Advances Talks on Return of Benin Bronzes as Lagos Museum Prepares New Exhibition Wing

      February 6, 2026

      Nigeria’s Cultural Heritage Key to Restoring Global Reputation – Experts

      February 5, 2026
    • Lifestyle

      MasterChef Nigeria Debuts with Record ₦73 Million Grand Prize

      February 16, 2026

      Rite Foods Tasks Nigerians On Love At Valentine’s Day

      February 14, 2026

      WEMA Bank Set To Sponsor Celebrity Performance At Couple’s Wedding

      February 14, 2026

      Agunbiade Wins Double Honours at 2026 Coolwealth Awards

      February 12, 2026

      NAHCO Debuts High-End Airport Hotel as Record Profits Drive Bold Expansion into Luxury Transit Hospitality

      February 9, 2026
    • Sports

      Super Eagles set to go against Jordan in friendly match, await FIFA World Cup decision

      February 16, 2026

      Verdict Day: Nigeria Awaits FIFA Ruling on NFF Protest Over DR Congo’s Alleged Use of Ineligible Players

      February 16, 2026

      Kenya’s Ezra Kipchumba Kering Shines as Winner of Lagos City Marathon

      February 15, 2026

      FIFA World Cup Qualifiers: Falconets Set To Face Malawi In Final Round, After Defeating Senegal 2-1

      February 15, 2026

      Nigeria Awaits FIFA Verdict on DR Congo Protest That Could Revive 2026 World Cup Hopes

      February 14, 2026
    • Contact
    YouTube Facebook Instagram WhatsApp
    Megastar Magazine
    Home » FG set to bring up compulsory vehicle recycling fee from 2026
    News

    FG set to bring up compulsory vehicle recycling fee from 2026

    Ifetayo AdeniyiBy Ifetayo AdeniyiDecember 22, 20255 Mins Read
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email Telegram
    Share
    Facebook Twitter WhatsApp Telegram Email

    FG set to bring up compulsory vehicle recycling fee from 2026

    Director General of the NADDC, Joseph Osanipin

    … policy would formalise the recycling of vehicles that have reached the end of their useful lives.

    The Federal Government has announced plans to tap into Nigeria’s largely informal vehicle recycling market, projecting annual revenues of over N150bn from 2026, as part of sweeping reforms to modernise the country’s automotive industry.

    The National Automotive Design and Development Council disclosed this in a statement issued on Sunday, with the Director-General, Joseph Osanipin, saying the initiative would be driven by a comprehensive End-of-Life Vehicle programme already approved for implementation.

    Osanipin explained that the policy would formalise the recycling of vehicles that have reached the end of their useful lives, turning what is currently an environmental and safety burden into a major economic opportunity.

    “In developed countries, when you buy a new vehicle, during registration, you make a payment towards the disposal of that vehicle when it reaches the end of its life. When it gets to the end of its life, somebody has to be responsible for the disposal,” he said.

    According to him, Nigeria’s programme will follow a similar model, requiring a modest fee at the point of vehicle registration to fund environmentally sound disposal and recycling, a move he acknowledged may initially face public resistance.

    Osanipin noted that Nigeria already has a thriving informal second-hand auto parts market, commonly referred to as the Belgian parts market, driven largely by durability and quality concerns around new parts.

    He said studies by the council showed that over 85 per cent of components from end-of-life vehicles remain reusable or recyclable, creating a strong foundation for a formal circular economy.

    “If someone has an alternative, instead of abandoning vehicles by the roadside, you can turn them in and still make something out of them. The circular economy associated with this will be worth billions of naira every year, if well managed,” he said.

    He added that beyond revenue generation, the recycling ecosystem would create thousands of jobs across dismantling, refurbishing, logistics and component resale segments.

    The announcement comes against the backdrop of a rebound in Nigeria’s vehicle import market this year. The PUNCH recently reported that the value of passenger motor car imports rose to about N1.01tn in the first nine months of 2025, up from roughly N894bn in the same period last year, signalling a resurgence in demand as foreign exchange market stability improves and importer confidence returns.

    Data from the National Bureau of Statistics showed that the recovery only gained traction in the second half of the year, with the third quarter posting a sharp uptick in import value that more than offset slower activity earlier in the year.

    The rebound underscores the resilience of Nigeria’s auto market, especially the fairly used (“Tokunbo”) segment, but also highlights persistent challenges, including high landing costs, currency exposure, and structural dependence on imports.

    As part of the reforms, the NADDC will introduce mandatory pre-export certification for all used vehicles imported into Nigeria from 2026, a measure aimed at curbing the dumping of rusted and end-of-life vehicles into the country.

    Osanipin said Nigeria was currently one of the few African countries without such a requirement, making it a destination of choice for exporters seeking to offload unroadworthy vehicles.

    He recounted a meeting with a foreign exporter who admitted shipping eight containers of end-of-life vehicles to Nigeria because it offered the “highest profit.”

    “We will ensure that importers are held responsible so that whatever you are buying, you know what you are buying,” he said, adding that the cost of certification would be borne by exporters, not Nigerian consumers.

    In a parallel push to future-proof the sector, Osanipin unveiled plans to convert petrol and diesel-powered vehicles to electric vehicles and compressed natural gas, in line with the National Automotive Industry Development Plan.

    He said the council had commenced extensive training programmes on EV technology, vehicle conversion and alternative fuel systems for both regulators and industry players.

    “Capacity building is one of the major pillars of the NAIDP. “We have carried out training on vehicle conversion from PMS and diesel to CNG, as well as on electric vehicles,” he said.

    He disclosed that the council had developed National Occupational Standards for EV maintenance and CNG retrofitting, with structured certification programmes expected to begin by 2026.

    Osanipin said Nigerian engineers and students were making notable progress in local vehicle design, citing projects involving tricycles, buses and electric campus shuttle buses developed in collaboration with 12 universities and private sector partners.

    “We want what is taught in our institutions to reflect industry realities. Producing even a few world-class auto engineers locally will have a significant impact on the economy,” he said.

    He stressed that component manufacturing remains the real value driver in the automotive sector, noting that Nigeria spends more annually on tyres, brake pads, filters and batteries than on importing complete vehicles.

    The council, he said, was engaging stakeholders to address infrastructure, financing and policy bottlenecks facing component manufacturers, especially as Nigeria positions itself to benefit from the African Continental Free Trade Area.

    Osanipin also revealed plans to transform the NAIDP from a policy document into an Act of Parliament, announcing that a draft Auto Industry Bill would soon be presented to the National Assembly.

    “Investment in the auto sector is huge. They will need an Act,” he said.

    Acknowledging that some of the reforms would face resistance, Osanipin appealed to the media for support in explaining the policies to the public.

    “When the pushback comes, we need you to explain to Nigerians what we are trying to do and why,” he said, describing 2026 as a pivotal year for Nigeria’s automotive industry transformation.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Previous ArticleFreedom regained for remaining 130 abducted Niger pupils 
    Next Article FG shares grief over death of Angolan ex-VP dos Santos
    Ifetayo Adeniyi
    • Website

    Adeniyi Ifetayo Moses is an Entrepreneur, Award winning Celebrity journalist, Luxury and Lifestyle Reporter with Ben tv London and Publisher, Megastar Magazine. He has carved a niche for himself with over 15 years of experience in celebrity Journalism and Media PR.

    Related Posts

    News February 16, 2026

    Zaccheus Adedeji declares tax systems automated, digital, data-driven 

    News February 16, 2026

    Zamfara State Inaugurates Landmark IDP Policy and Action Plan as UNDP, Northwest Forum Pledge Support

    News February 16, 2026

    Customs Presents Digital One-Stop-Shop To Remove Cargo Delays

    News February 16, 2026

    Abia Government Commences Payment of 22-Year Salary Arrears to Former Councillors

    News February 16, 2026

    NDPC Launches Investigation into Temu Over Data Privacy Concerns

    News February 16, 2026

    Ally to Adversary: El-Rufai’s Alleged NSA Surveillance Sparks Legal Clash with Tinubu

    Leave A Reply Cancel Reply

    Don't Miss
    Sports February 16, 2026

    Super Eagles set to go against Jordan in friendly match, await FIFA World Cup decision

    Super Eagles set to go against Jordan in friendly match, await FIFA World Cup decision…

    Zaccheus Adedeji declares tax systems automated, digital, data-driven 

    February 16, 2026

    Zamfara State Inaugurates Landmark IDP Policy and Action Plan as UNDP, Northwest Forum Pledge Support

    February 16, 2026

    Customs Presents Digital One-Stop-Shop To Remove Cargo Delays

    February 16, 2026

    Subscribe to Updates

    Get the latest news as they happen

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    Our Picks

    ACE-COMEDIAN, SHORTCUT HOSTS COMEDY 3.O IN ABUJA.

    November 3, 2021

    Olori Atuwatse III To Champion Free Medical Outreach In Delta

    December 8, 2021

    Mars E&P secures $274 million facility from AFREXIM Bank

    November 25, 2021
    New Comments
    • Anozie okolo on Supreme Court Affirms President Tinubu’s Victory As Atiku, Peter Obi Lose
    • Mc richman on Nigeria and South African Music histories
    • Moses Ibrahim on Olu of Warri: Pictorial @ The Ogiame Atuwatse III Economic Summit.
    • Sen Rich Kay on MALARIA ERADICATION: Prince Ned Nwoko & NMEP Meet for joint action.
    Megastar Magazine
    YouTube Facebook WhatsApp Instagram
    • Privacy Policy
    • Terms of Use
    • Contact Us
    © 2026 Megastar Magazine. Designed by MANNDI

    Type above and press Enter to search. Press Esc to cancel.