FG targets annual revenue of N100 billion through proposed vehicle recycling policy
James Emejo in Abuja
The implementation of the proposed national regulations on end-of-life vehicle recycling (ELV) in the country is expected to generate around N100 billion in annual revenue for the federal government, the chief executive of the National Automotive Design and Development Council ( NADDC), M. said Jelani Aliyu.
The policy, he added, would also create 40,000 direct and indirect jobs and, among other things, protect the environment from dangers and keep roads and highways safe.
Aliyu, while commenting on the proposed vehicle recycling policy which is awaiting regulatory approval, said one of the ways Nigeria could revive clean mobility is to create policies and regulations to encourage recycling factories. automobile.
He said the council had offered to develop a pilot car recycling plant for environmentally friendly recycling and material recovery available to the public.
Speaking at a one-day validation workshop on end-of-life vehicle regulation and presentation of the Nigeria Automotive Waste Recycling Data Baseline Study, which was hosted by NADDC, in partnership with the Nigeria Economic Development Initiative (REDIN) and the National Environmental Standards and Regulations Enforcement Agency (NESREA), Aliyu described ELVs as vehicles that come to the end of their life each year due to their age, poor maintenance and traffic accidents.
He said these vehicles become a hazard to traffic and the environment, and have the potential to pollute the environment if not properly disposed of, causing long-term negative environmental impact.
He said that proper management of ELVs could turn potential dangers to the environment into useful raw materials that can be used by industries and create thousands of job opportunities for teeming youth.
He pointed out that ELVs are currently a global concern as automobile ownership is growing rapidly, adding that the auto industry has the most recycled products in the world with a global market of over $ 60 billion per year.
According to him, more than 80 percent of ELV materials could be recycled to make new vehicles or as a raw material for other industries, pointing out that recycling obsolete vehicles significantly reduces the environmental pollution created by the reckless dumping.
In 2018, the National Bureau of Statistics (NBS) estimated that Nigeria had around 11.8 million vehicles on the road and that number is increasing with population growth, which remains a huge secondary raw material resource for the country.
However, the boss of NADDC said that, in line with the growing need for proper recycling of ELVs and the environmental and economic sustainability of the sector, the council, in collaboration with REDIN and NESREA, has developed a national regulation for the recycling of vehicles outside. customary in Nigeria.
He said, âThe aim of this regulation is to introduce a framework for vehicle collection and recycling across Nigeria and to build auto recycling facilities that support local industries and create thousands of jobs for them. citizens.
To achieve this goal, NADDC obtained evidence-based information to establish ELV recycling regulations to facilitate cooperation among members of the existing ELV scrap recycling value chain and design a coordination framework for the recycling of ELVs. ‘ELV recycling industry in Nigeria.’
He said the management of ELVs was of vital importance for environmental conservation, investment opportunities and sustainable development.
He pointed out that the proposed ELV regulation was modeled on the Japanese and Dutch models, two countries with the highest car recycling rates in the world.
Aliyu said that if passed, this regulation would be a historic achievement for the country and the first in Africa, as it will require people to take responsibility for the waste created by their vehicles, as is currently done around the world.
He added that the objectives of the policy are, among others, to ensure good management of ELVs in the country, ensure efficient use of resources by reducing waste from automobile use as well as ” ensure efficient recycling and use of recycled auto parts and revenue generation for the government.
In addition, in his presentation on the planned ELV policy, REDIN Managing Director Mr. Terseer Ugbo said automobiles remain the most recycled consumer products in the world, adding that Nigeria, with a population of more than 200 million inhabitants and more than 11 million individuals and commercial vehicles on the roads, generates more than 400,000 end-of-life vehicles each year.
He said only a fraction is collected and dismantled by the informal scrap market, while a majority is left behind in private and public spaces across the country.
Ugbo said the proposed regulation will ensure an economically and environmentally vibrant industry in the collection, dismantling, recycling and recovery of valuable materials in the automotive sector and create thousands of jobs and wealth for Nigerians. .
According to him, the ELV recycling project will develop the automotive recycling sector and create 40,000 direct and indirect jobs, recycle more than 140,000 tonnes of ferrous and non-ferrous metals per year, recycle more than 1,000,000 used batteries per year and will recycle more than two million used tires per year.
The policy would also help recycle millions of liters of used motor oil every year, generate more than 100 billion naira in annual revenue from the sector, protect the environment from dangers and make roads and highways safer.
He explained that a one-time fee of 5,000 naira had been proposed as part of the policy to be carried out upon registration of the car with the vehicle inspection office or the vehicle registration authority. government vehicles in accordance with the Extended Producer Responsibility program.
He said the fund will potentially generate N25 billion in the first year of implementing vehicles already on our roads and N2.5 billion per year from new car registrations.
According to him, the ARF fund will be managed by the NADDC directly or through the Bank of Industry to issue low-interest loans and grants for the establishment of recycling facilities for various wastes. automobiles.
The funds would also be used to finance research and development for automotive technical colleges and auto parts manufacturing projects, he added.