The Driver and Vehicle Licensing Authority (DVLA) faces a legal challenge from local embossment companies over its planned rollout of digital vehicle number plates, with the Vehicle Embossment Association of Ghana (VEMAG) securing a court injunction to halt implementation.
The suit was filed by BEMENCO Embossment Ltd and 26 other plaintiffs at the High Court in Accra on December 22, 2025, seeking to restrain the DVLA from introducing any new vehicle registration system. The High Court granted an injunction on December 23, 2025, restraining implementation of the proposed system.
The association argues that the DVLA’s new approach consolidates both manufacturing and embossment of vehicle number plates under a single entity, Original Manufacturing and Embossment, owned by Nyarko Esumadu Appiah, also known as Daasebre. According to VEMAG, on October 27, 2025, the DVLA Chief Executive Officer informed members at a meeting that the Authority had awarded the contract for both manufacture and embossment to this individual.
VEMAG maintains that for over 30 years, licensed local embossers have operated under a predictable framework with the DVLA. The association states that members collectively employed over 3,000 workers across the country and that disengaging them abruptly would jeopardize livelihoods nationwide.
At the heart of the legal challenge are procurement concerns. VEMAG alleges that the DVLA did not advertise for tenders nor obtain approval from the Public Procurement Authority to sole source the contract, thereby violating the Public Procurement Act, 2003 (Act 663). The association describes the decision as illegal, discriminatory and an abuse of administrative authority.
VEMAG states that members were required to acquire specialized embossment equipment that met DVLA specifications, at costs ranging between GH¢70,000 and GH¢1 million per unit. The sudden policy shift threatens these substantial capital investments made over decades of partnership with the Authority.
DVLA Chief Executive Julius Neequaye Kotey, addressing a press conference on December 24, said he was surprised by the legal action, particularly as the company awarded the contract had expressed willingness to collaborate with all stakeholders. He stated that the contractor welcomed existing players coming to the Integrated Financial Registration Device (IFRD) system.
The dispute has effectively stalled the DVLA’s planned transition to Radio Frequency Identification (RFID) embedded number plates, originally scheduled for January 2, 2026. The DVLA announced suspension in a December 24, 2025 press statement, explaining that while Parliament amended the Road Traffic Act, 2004 (Act 683), specific provisions in Legislative Instrument (L.I.) 2180, the Road Traffic Regulation 2012, were not passed before Parliament went on recess December 19.
The proposed RFID system was designed to enable digital vehicle tracking, automated tolling, speed monitoring and enhanced law enforcement capabilities. DVLA officials maintain that modernizing Ghana’s vehicle registration system serves broader public interest goals including enhanced security and road safety.
However, VEMAG warns that the approach threatens employment stability and reduces local business participation in an industry where Ghanaian companies have built substantial capacity over three decades. The association also noted that some members are still owed arrears by the DVLA for plates already produced.
The matter remains before the courts for determination. Meanwhile, vehicle registrations nationwide continue under the existing year based suffix system, with 2026 plates now featuring the “26” suffix following the pattern established since 2009.
