GCIEP Projects $1.5 Billion Yearly Revenue from Nigeria's Plastic Recycling Industry
The Green Cities, Infrastructure and Energy Programme (GCIEP) has projected that Nigeria's plastic recycling sector alone could generate an impressive $1.5 billion in annual revenue. This forecast highlights a significant economic opportunity, with the sector representing a $10 billion market potential if properly developed and harnessed.
Focus on Unlocking Investment Through Collaboration
This promising opportunity was the central theme of a recent GCIEP event held in Lagos, where stakeholders from the waste-to-value ecosystem gathered to discuss practical steps for growth. The event aimed to foster stronger collaboration to overcome barriers and attract investment into the recycling industry.
UK-Supported Waste-to-Value Study
The waste-to-value study, commissioned by the UK Department for Business and Trade and delivered under the GCIEP, involved extensive engagement with stakeholders in both Nigeria and the UK. The assessment focused on key market opportunities, gauging international investor interest, and identifying main obstacles to investment in the sector.
Oluwatosin Adenuga, Energy and Technology Trade Adviser at the UK Department for Business and Trade, opened the session by noting that the study builds on existing efforts in Lagos to strengthen waste management systems. He emphasized that the UK's support aims to address practical barriers preventing viable projects from reaching financial close, with a focus on sharing evidence and enabling Lagos-led action.
Government and Industry Perspectives on Challenges
Dr. Adekunle Adebiyi, Executive Director (Finance) of the Lagos State Waste Management Authority (LAWMA), acknowledged the operational challenges faced by waste collection operators. He stated that the government is actively exploring ways to provide targeted support and referenced ongoing reform efforts to improve the sector's sustainability, including adjustments to tariff structures.
Dr. Olugbenga Adebola, Chairman of the Association of Waste Managers of Nigeria (AWAMN), highlighted several key challenges constraining the sector's performance. These include the absence of source separation, infrastructure deficits, limited access to suitable financing, and outdated tariff structures that hinder efficiency and growth.
Assessment Across Multiple States
Mr. Benneth Obinna Obasiohia, the project Team Lead, explained that the assessment examined barriers affecting waste-to-value investment across four focus states: Lagos, Ogun, Kano, and Abia. The report found abundant waste supply, growing policy interest, and increasing demand for waste processing solutions across these regions, indicating a ripe environment for investment.
Recommendations for Unlocking Investment
The report outlined actions to unlock greater investment in Nigeria's waste-to-value sector. Key recommendations include strengthening enforcement of Extended Producer Responsibility (EPR) frameworks, particularly for plastics, e-waste, and paper. This would create predictable revenue streams for recycling businesses, enhancing their viability and attracting more private capital into the industry.
