With roughly 13 million metric tonnes of waste produced each year, Lagos is sitting on a potential $2.5 billion revenue opportunity, if it can recover up to 70% of recyclable materials. Analysts argue that the city’s waste, long seen as a liability, could become one of Africa’s most lucrative sustainability sectors.
Every day, Lagos generates an estimated 13,000 tonnes of waste—much of it mixed, poorly sorted, and dumped in landfills. Yet, projections from recycling firms and industry observers reveal that even partial recovery could yield N60–N100 billion annually through plastics, metals, paper, and organics. PET plastics alone, which make up about 10% of the city’s waste stream, could generate N39–N58.5 billion each year at current market rates, according to estimates from Polysmart Group. Scrap metals contribute another N32.5–N48.75 billion, while paper and organics add billions more.
These are gross market figures, but even adjusted for logistics and processing costs, they underscore the massive untapped potential of Lagos’ waste economy. Informal recycling networks, often overlooked in formal estimates, already contribute significantly—particularly across major sites like Olusosun and Solous. Factoring in value-added processes such as pelletising or carbon credit monetisation could further expand the sector’s economic weight.
However, scaling to industrial-level recovery remains a challenge. Waste segregation at the source is minimal, making collection and sorting costly. Recyclers also face capital constraints, as infrastructure investments require patient financing. Policy inconsistencies and weak enforcement have further dampened private-sector confidence.
Despite these structural bottlenecks, Lagos is positioning itself for a circular transition. The Lagos State Waste Management Authority (LAWMA) is converting major dumpsites like Olusosun and Solous III into transfer-loading stations feeding Material Recovery Facilities (MRFs) in Ikorodu and Badagry. The state has also signed memoranda with private partners for waste-to-energy and biogas projects—such as the planned 60–80 MW Epe facility with Harvest Waste Consortium and a biogas initiative backed by Sweden to convert food waste into fuel.
Government reforms aim not just to clean the city, but to reframe waste as an economic resource. Plans to decommission landfill sites and convert them into eco-parks could cut methane emissions, create green jobs, and reduce flood risks.
