FG to introduce compulsory vehicle recycling fee from 2026

FG to introduce compulsory vehicle recycling fee from 2026

The Federal Government has announced plans to introduce a compulsory vehicle recycling fee starting in 2026, a move expected to increase costs for motorists amid rising vehicle imports.

Authorities said the policy aims to formalise Nigeria’s informal auto recycling market and modernise the country’s automotive industry.

Joseph Osanipin, Director-General of the council, explained that the initiative will ensure vehicles at the end of their useful lives are disposed of responsibly, rather than abandoned or dismantled unsafely. “In developed countries, when you buy a new vehicle, you make a payment during registration towards the disposal of that vehicle when it reaches the end of its life,” he said.

While acknowledging that the fee may face resistance, Osanipin noted it would be modest and would fund an environmentally sound nationwide recycling system. He emphasised that adopting international best practices is crucial to addressing Nigeria’s environmental and safety concerns related to vehicle disposal.

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