The Federal Government expects to generate about ₦150 billion annually from its proposed End-of-Life Vehicle (ELV) policy once it becomes operational.
Director-General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, disclosed this during a media parley in Abuja. He said the projected revenue would come from vehicle parts recycling and the recovery of motor components.
Osanipin explained that the ELV policy aims to create a structured system for the disposal of vehicles and parts that are no longer roadworthy.
Under the framework, vehicle owners will, over time, pay a small fee during registration. The fee will support an ecosystem focused on safe dismantling, recycling, and recovery of vehicle components.
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According to him, over 85 per cent of components from end-of-life vehicles are reusable or recyclable, but many currently go to waste. He said the policy will discourage the abandonment of vehicles on roadsides and help create economic value from discarded vehicles.
Osanipin noted that the circular economy created by the ELV policy could run into billions of naira. He added that it would also boost the second-hand vehicle parts market and create jobs nationwide.
He stressed that environmental protection and public health concerns remain the key drivers of the policy.
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While acknowledging that the introduction of small fees may face resistance, Osanipin assured that the government would intensify public awareness campaigns.
He called for strong media support to educate Nigerians on the long-term environmental, economic, and health benefits of the End-of-Life Vehicle policy.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
