The Federal Government has announced plans to tap into Nigeria’s largely informal vehicle recycling market, projecting annual revenues of over N150bn from 2026, as part of sweeping reforms to modernise the country’s automotive industry. “In developed countries, when you buy a new vehicle, during registration, you make a payment towards the disposal of that vehicle when it reaches the end of its life. The announcement comes against the backdrop of a rebound in Nigeria’s vehicle import market this year. The rebound underscores the resilience of Nigeria’s auto market, especially the fairly used (“Tokunbo”) segment, but also highlights persistent challenges, including high landing costs, currency exposure, and structural dependence on imports. “When the pushback comes, we need you to explain to Nigerians what we are trying to do and why,” he said, describing 2026 as a pivotal year for Nigeria’s automotive industry transformation.

Source: Punch December 21, 2025 20:36 UTC