Ogona Anita
The Federal Government has taken decisive steps toward ending Nigeria’s long-standing dependence on imported used vehicles, commonly known as “tokunbo” cars, as part of a sweeping reform of the country’s automotive sector. The policy shift, which is expected to gather momentum between now and 2026, is aimed at strengthening local automobile manufacturing, improving vehicle safety and quality, protecting the environment, and positioning Nigeria as a serious player in Africa’s automotive value chain. The renewed commitment was restated in Lagos during the 18th edition of the Nigeria Auto Journalists Association (NAJA) International Auto Awards, where the Director-General of the National Automotive Design and Development Council (NADDC), Otunba Oluwemimo Joseph Osanipin, outlined the Federal Government’s vision for a more self-reliant and sustainable auto industry.
According to him, current government interventions are deliberately structured to discourage the importation of used vehicles while promoting the patronage of locally assembled and manufactured automobiles. Osanipin explained that the continued influx of used vehicles into Nigeria has undermined local production for decades, weakened industrial capacity, and exposed Nigerians to substandard and unsafe automobiles.
He said the government is now determined to reverse that trend by tightening vehicle entry standards and ensuring that only compliant, safe, and environmentally acceptable vehicles are allowed into the country. “The NADDC, working with other regulatory agencies and private-sector stakeholders, is strengthening vehicle entry requirements to ensure that only road-worthy and compliant vehicles enter the Nigerian market,” Osanipin said. “Our ultimate objective is a gradual but firm shift away from used vehicle imports towards domestic production and assembly.” At the centre of this transformation is the National Auto Industry Development Policy (NAIDP), a long-awaited framework designed to provide legal and regulatory backing for Nigeria’s automotive ambitions. Although the policy has faced years of delays and uncertainty, Osanipin revealed that it is now receiving renewed political will and institutional support
He disclosed that the Federal Government is targeting the passage of the auto policy into law by the second quarter of 2026. According to him, the NADDC will soon forward the policy to the National Assembly, where it will undergo legislative scrutiny and extensive stakeholder engagement through public hearings. “We are committed to strengthening local manufacturing in Nigeria,” Osanipin stated. “One of our major targets is to ensure that the Auto Policy is enacted by the second quarter of 2026.
We will engage all relevant stakeholders extensively to ensure that the law reflects national interests and global best practices.” Industry analysts say the passage of the NAIDP could mark a turning point for Nigeria’s auto sector, which has struggled with policy inconsistencies, inadequate infrastructure, and heavy reliance on imports. If fully implemented, the policy is expected to provide incentives for local assembly plants, encourage technology transfer, attract foreign direct investment, and stimulate job creation across the automotive value chain.
Beyond legislation, the Federal Government has already begun laying the regulatory groundwork to support the transition away from used vehicle imports. One of the most significant steps in this direction is the introduction of the End-of-Life Vehicle (ELV) Recycling Regulation in March 2025. The regulation, according to Osanipin, is a critical tool in the government’s strategy to clamp down on imported used vehicles and promote sustainability.
The ELV regulation is designed to formalise vehicle recycling in Nigeria, promote a circular economy, reduce environmental pollution, improve road safety, and create new employment opportunities. Under the framework, vehicles that have reached the end of their useful life will be systematically withdrawn from the roads and recycled in an environmentally responsible manner. “The regulation ensures that vehicles that have outlived their useful life are responsibly recycled,” Osanipin explained. “This supports environmental protection while opening up new business and job opportunities in recycling, logistics, and component recovery.” As part of the ELV framework, the Federal Government is also planning to introduce a compulsory vehicle recycling fee, expected to take effect from 2026.
The fee will apply to vehicle owners and importers and will be used to fund recycling infrastructure, compliance enforcement, and environmental remediation. Officials say the measure will not only discourage the continuous importation of aging vehicles but also ensure that Nigeria develops a structured and sustainable vehicle disposal system. Environmental experts have welcomed the move, noting that abandoned and poorly maintained vehicles contribute significantly to air pollution, soil contamination, and urban decay across Nigerian cities.
They argue that a formal recycling system could help Nigeria recover valuable materials such as steel, aluminium, plastics, and electronic components, while reducing the environmental footprint of the transport sector. Road safety advocates have also applauded the initiative, pointing out that many used vehicles imported into Nigeria are already near the end of their life cycle and often lack modern safety features.
According to them, reducing the number of such vehicles on Nigerian roads could significantly lower the rate of road accidents caused by mechanical failure. However, the proposed ban on used vehicle imports has also sparked debate among consumers and industry players. For millions of Nigerians, used vehicles remain the most affordable option due to low purchasing power and limited access to credit. Some stakeholders have warned that without adequate local production capacity and affordable financing options, a sudden restriction on used vehicle imports could place additional strain on consumers.
In response, government officials insist that the transition will be gradual and carefully managed. They argue that the promotion of local assembly plants will ultimately lead to more affordable vehicles, as domestic production reduces import costs, creates competition, and supports local supply chains. The government has also hinted at the possibility of expanding auto financing schemes and incentives to make locally assembled vehicles more accessible to average Nigerians.
Automotive industry observers note that Nigeria already has several local assembly plants producing passenger cars, commercial vehicles, and buses. With the right policy support, they believe these facilities could scale up production, deepen local content, and eventually meet a significant portion of domestic demand. As the Federal Government moves closer to implementing these reforms, the coming months are expected to see increased engagement with lawmakers, auto manufacturers, labour unions, environmental groups, and consumer advocates.
The success of the initiative, experts say, will depend not only on policy formulation but also on consistent implementation, transparency, and collaboration across sectors. For now, the government’s message is clear: Nigeria is ready to chart a new course for its automotive industry—one that prioritises local manufacturing, environmental responsibility, and long-term economic sustainability over the unchecked importation of used vehicles. Whether the ambitious plans will translate into tangible benefits for consumers and the broader economy remains to be seen, but the direction signals one of the most significant policy shifts in Nigeria’s auto sector in decades.
