ELV policy to inject ₦150bn annually into Nigeria’s economy — NADDC

The National Automotive Design and Development Council (NADDC) says Nigeria’s proposed End-of-Life Vehicle (ELV) policy has the potential to generate about ₦150 billion yearly for the economy once it is implemented.

The Director-General of NADDC, Mr Joseph Osanipin, disclosed this during an interactive session with journalists in Abuja.

He explained that the projected revenue would be driven by vehicle recycling, recovery of usable parts and the growth of related automotive value chains.

Osanipin said the ELV policy, expected to commence in 2026, is aimed at establishing a structured system for the disposal and recycling of vehicles that are no longer roadworthy.

“In developed countries, when you buy a new vehicle, you make a payment at the point of registration towards its disposal at the end of its lifespan.

“That is why you hardly see abandoned vehicles or spare parts littering roadsides and mechanic workshops,” he said.

Under the proposed Nigerian framework, vehicle owners will pay a small fee during registration.

The funds will be used to support environmentally safe dismantling, recycling and recovery of vehicle components.

According to Osanipin, more than 85 per cent of parts from end-of-life vehicles are reusable or recyclable, but these materials are currently wasted due to the absence of an organised system.

“Rather than abandoning old vehicles by the roadside, owners can turn them in and create value.

“The circular economy around ELVs can generate billions of naira, stimulate second-hand parts markets and create jobs nationwide,” he noted.

While highlighting the economic benefits, Osanipin stressed that environmental protection and public health were the primary drivers of the policy.

“The most important reason is the environment and the health of the people,” he said.

He also acknowledged that the introduction of additional fees might face public resistance but assured that awareness campaigns would be intensified to educate citizens on the long-term benefits.

“Sometimes, what is good for you may not be accepted if people are not properly informed.

That is why media support is crucial in helping the public understand the importance of this policy,” Osanipin added.