Nigeria’s plastic recycling sector valued at $10bn, says GCIEP

SEATTLE (Scrap Monster):  Nigeria’s plastic recycling sector represents an estimated $10 billion market, highlighting the scale of opportunity within the country’s broader waste-to-value economy, according to the Green Cities Infrastructure and Energy Programme (GCIEP).

This opportunity was the focus of stakeholders from across Lagos’ waste- to-value ecosystem gathered to discuss the sector’s opportunities and the practical steps needed to unlock them through stronger collaboration.

The waste-to-value study was commissioned by the UK Department for Business and Trade and delivered under GCIEP. It involved extensive engagement with stakeholders in Nigeria and the UK to assess key market opportunities, gauge international investor interest, and identify the main barriers 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 waste-to-value study builds on the significant work already underway in Lagos to strengthen waste management systems and attract private investment.

He said that the UK supported the initiative to help address practical barriers preventing viable projects from reaching financial close.

 In his words, “Nigeria’s waste challenge is often described as overwhelming.” But from an investment perspective, demand is large, waste supply can be guaranteed, and pressure for better outcomes is growing.

Those are the conditions investors look for if the enabling environment is right. Today is about shaping that enabling environment together.” He concluded by emphasising that the session was about sharing evidence, strengthening partnerships, and enabling Lagosled action.

Also speaking at the event, Adekunle Adebiyi, the Executive Director (Finance) of the Lagos State Waste Management Authority (LAWMA), highlighted several initiatives being undertaken by the state government to strengthen the enabling environment for investment in the waste management sector.

He noted that the government is aware of the operational challenges faced by waste collection operators and is actively exploring ways to provide targeted support.

“We acknowledge the challenges faced by operators and are working to identify areas where the government can support, particularly at the collection stage,” he said. “The state government is currently exploring options to support waste collectors with equipment such as waste collection trucks.”

 Responding to comments raised during the discussion on tariff structures, Adebiyi also referenced ongoing reform efforts by the Lagos State Government aimed at strengthening the sector and improving its long-term sustainability.

In his remarks, Olugbenga Adebola, the Chairman of the Association of Waste Managers of Nigeria (AWAMN), identified several key challenges constraining the sector’s performance, including the absence of source separation, infrastructure deficits, limited access to suitable financing, and outdated tariff structures.

Providing further insights from the study, 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.

“Our analysis prioritises the barriers in the sector based on their impact on commercial viability and how feasible they are to address,” he said. “This allows policymakers to sequence reforms more effectively and focus on the actions that can unlock investment in the near term.”

 Courtesy: www.businessday.ng