END OF LIFE VEHICLE ELV POLICY

What Is This Policy?

The End-of-Life Vehicle (ELV) Policy establishes Nigeria's first formal regulatory framework for identifying, deregistering, dismantling, and responsibly recycling decommissioned and abandoned vehicles. Driven by NADDC, the policy introduces mandatory vehicle recycling standards, an ELV levy, and a licensed recycling industry to transform Nigeria's informal vehicle scrap trade into a structured circular economy.

Who Does It Target?

Vehicle owners, both private and commercial, who must pay the mandatory ELV levy at the point of vehicle purchase or registration Vehicle manufacturers and importers who bear Extended Producer Responsibility obligations for end-of-life disposal under the regulations Scrap dealers, dismantlers, and recyclers who must obtain NADDC/NESREA certification and licensing to operate formally Federal Road Safety Corps (FRSC), VIO, and Nigeria Customs Service, who play enforcement and port-clearance roles under the multi-agency ELV Steering Committee

What Does It Aim to Achieve?

Reduce environmental pollution from abandoned and derelict vehicles, which leach hazardous fluids into soil and groundwater and contribute to urban waste accumulation Remove unsafe, non-roadworthy vehicles from Nigeria's roads, improving road safety and reducing accident risks Create over 40,000 direct and indirect jobs in vehicle collection, dismantling, parts recovery, materials processing, and recycled materials trade Generate over N150 billion annually through the ELV levy and formal recycling economy, channelled into NADDC's certified recycling infrastructure fund

Key Features

ELV Levy: A mandatory recycling fee is charged to every vehicle owner at the point of purchase or registration; funds collected support NADDC's certified ELV recycling facility network Extended Producer Responsibility: Vehicle manufacturers and importers are required to register with NADDC and fulfil EPR obligations, including providing technical support and co-financing for vehicle recovery at end of life Pre-Export Certification: Used vehicles imported into Nigeria from the USA, Dubai, and other markets must carry a special pre-export certificate issued to Nigerian standards before they leave the country of origin Licensing and Certification: All ELV collectors, dismantlers, and recycling plants must obtain NADDC certification and NESREA environmental compliance approval before operating; unlicensed operations are illegal Multi-Agency Steering Committee: A Steering Committee comprising NADDC, FIRS, state revenue services, VIO, FRSC, Nigeria Customs, and private recyclers coordinates implementation and enforcement Pilot Recycling Plant: NADDC is establishing a pilot ELV recycling plant to test large-scale operations before replication across the six geopolitical zones

Current Status

Rollout Stage: Active enforcement commenced October 2025; national full rollout programmed for 2026; awareness campaigns ongoing; stakeholder sensitisation completed in 34 states Implementing Body: NADDC (lead); NESREA (environmental compliance); FRSC (roadworthiness enforcement); NCS (port-entry controls); state VIO units (deregistration) Economic Context: Nigeria imported approximately N1 trillion worth of passenger vehicles in the first nine months of 2025; used cars from the USA accounted for N184 billion alone, underscoring the urgency of ELV management Job Creation: NADDC projects that formalising the currently informal ELV scrap market will create over 40,000 jobs and unlock N100 billion-plus in annual economic value

How to Access

Vehicle Owners: Pay the ELV levy at point of vehicle purchase or annual registration renewal; retain the ELV receipt as proof of compliance Recyclers and Dismantlers: Apply for NADDC certification and NESREA environmental compliance certification; attend NADDC's licensed recycler training programme at naddc.gov.ng Manufacturers and Importers: Register with NADDC's EPR portal and submit your annual ELV management return; engage NADDC for pre-export certification coordination with source-country authorities Contact: NADDC: naddc.gov.ng | 21 Katsina Ala Crescent, Off Solomon Lar Way, Utako, Abuja | +234 (0)9 461 6730

Important Terms

Informal Trading: The 'Belgian parts' trade and other informal scrap markets must register and obtain NADDC certification; informal operation after October 2025 is subject to enforcement action ELV Levy Rate: The specific ELV levy rate per vehicle category is published in NADDC's gazette notice; rates are reviewed annually in consultation with the Joint Tax Board

Official Resources

Website: naddc.gov.ng Contact: NADDC, 21 Katsina Ala Crescent, Off Solomon Lar Way, Utako, Abuja | +234 (0)9 461 6730 | [email protected] Policy Summary | Source: NADDC, Nairametrics, Leadership Nigeria, Authority Nigeria, Independent Nigeria, 234Drive | March 2026

Legal Framework

The End-of-Life Vehicle (ELV) Policy operates under the National Automotive Design and Development Council (NADDC) Act, the National Environmental Standards and Regulations Enforcement Agency Act 2007, and the National Environmental (Automobile Sector) Regulations. It aligns with the Nigerian Automotive Industry Development Plan, the Environmental Impact Assessment Act 1992, and the Basel Convention on transboundary movement of hazardous wastes (applicable to ELV waste materials).