Nigeria to Introduce Mandatory Vehicle Recycling Fee in 2026

Nigeria will implement a mandatory vehicle recycling fee from 2026 to restructure the automotive sector, combat environmental pollution, and prevent the country from becoming a dumping ground for worn-out imported cars. The policy aims to regulate vehicle disposal through an end-of-life vehicle (ELV) program, generating an estimated annual revenue of N150 billion and supporting job creation in recycling, logistics, refurbishing, and component resale.

The fee will be charged at the point of vehicle registration, covering both newly imported and locally assembled vehicles. The program is expected to unlock high-value recycling opportunities and ensure safe dismantling and recovery of usable materials.