The Federal Government is set to generate an estimated N150 billion annually from its proposed End-of-Life Vehicle (ELV) policy, according to Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC).

Speaking in Abuja, Osanipin explained that the revenue would come from recycling and recovery of vehicle parts, creating value from components that would otherwise go to waste. The policy is designed to establish a framework for the environmentally safe dismantling, recycling, and recovery of vehicles that are no longer roadworthy.

“Over 85% of components from end-of-life vehicles are either reusable or recyclable, yet much of this currently goes to waste. Instead of abandoning vehicles by the roadside, owners can turn them in, generating value while protecting the environment,” Osanipin said.

The ELV initiative is also expected to stimulate second-hand parts markets, create employment opportunities, and foster a circular economy in Nigeria. The DG emphasized that the primary motivation behind the policy is environmental protection and public health, noting that small fees introduced under the framework may face initial resistance.

“Sometimes, what is good for people may not be immediately accepted if they are not informed. Media support is essential to educate the public on the long-term benefits of this policy,” Osanipin added.

The policy aims to combine economic growth, environmental sustainability, and public health while transforming how end-of-life vehicles are managed across Nigeria.