FG set to Enforce Vehicle Recycling Policy by October 2025, Targets 40,000 Jobs
GoldenNewsNg reports that the Federal Government will begin full enforcement of the End-of-Life Vehicle (ELV) Waste Recycling Regulation in October 2025, as part of efforts to establish a nationwide framework for dismantling and recycling obsolete vehicles. The initiative is projected to generate over ₦60 billion annually and create more than 40,000 jobs across the country.
The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, announced the enforcement timeline during a stakeholder sensitisation event in Abuja. He described the ELV regulation as a key step in Nigeria’s shift toward green industrialisation and a circular economy, transforming derelict vehicles from environmental hazards into economic opportunities.
“This is not a symbolic regulation,” Osanipin stated. “It is a systemic economic and ecological intervention that will reposition Nigeria’s automotive ecosystem. We are establishing a framework that creates green jobs, attracts local investment, generates sub-national revenue, and reduces urban pollution.”
Introduced in March 2025, the regulation mandates the identification, deregistration, dismantling, and environmentally responsible disposal of aging and non-functional vehicles. It also sets national standards for processing and recovering reusable materials and requires certification for all ELV operations.
Osanipin noted that the policy is not solely about vehicle disposal but is aimed at building a formal circular economy within the automotive sector. By moving away from informal and hazardous scrap practices, the regulation will unlock a structured value chain from vehicle collection to material recovery, while driving industrial development.
To support nationwide implementation, the government will establish a multi-agency ELV Steering Committee comprising 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 key players in the private recycling sector.
The committee will be responsible for overseeing the implementation, ensuring compliance, managing inter-agency coordination, and recommending policy refinements as needed.
In addition to regulatory enforcement, the NADDC is partnering with the Joint Tax Board and state tax authorities to introduce fiscal incentives. These incentives aim to encourage the voluntary retirement of old vehicles and promote responsible recycling, while also enhancing government revenue collection from ELV activities.
According to Osanipin, the ELV regulation is expected to impact multiple sectors, including automotive services, logistics, inspection, and materials recovery. It is designed to catalyze job creation and attract private investment into Nigeria’s emerging recycling infrastructure.
He added that the initiative aligns with Nigeria’s broader goals of transitioning to a sustainable, innovation-driven economy and positions the country as a regional leader in automotive recycling and green industrial development.
