Lagos State government has reiterated its commitment to reducing the amount of waste ending up at landfill sites by adopting new strategies, such as “Waste to Energy Plants” in the state.

Commissioner for the Environment and Water Resources, Tokunbo Wahab, disclosed this at the Lagos Investors Summit 2.0, held at the Eko Hotel and Suites, Victoria Island.

He stated that the plant is an innovative project designed to convert waste to energy by addressing both efficient waste management and energy generation for Lagos State.

Wahab, who spoke on the summit’s theme: “Scaling Action: Bold Solutions for Making a Lagos 21st Century Economy,” stated that the Waste to Energy Plant is a project that offers crucial opportunity to increase generating capacity by leveraging municipal solid waste as a resource for energy generation.

He highlighted that the state faces significant waste management challenges with approximately 80 per cent of landfill capacity nearing the end of its life, 63 per cent formal waste collection coverage and 67 per cent of households resorting to illegal dumping.

These challenges, Wahab said, contributed majorly to flooding issues during extreme weather events by blocking the drainage systems in the state.

“The value proposition of the Waste to Energy Plant anticipates an Internal Rate of Return (IRR) of 12 per cent over a 20-year operating period, underpinned by electricity pricing and the introduction of a tipping fee.

“The project aims to prevent flooding, increase energy security, create revenue, and support the National Energy Transition Plan.

“Additionally, it will remove solid waste from densely populated areas, ensure cleanly disposed waste, maintain landfills, implement a carbon-conscious facility design and generate clean energy for up to two million Lagos residents,” he said.

Wahab disclosed that the facility is proposed to be situated at Epe with a projected Capital Expenditure (CAPEX) of around $400 million

He emphasised that Lagos is a state highly exposed to physical climate risks with a prediction that by 2050, most parts of the state would be exposed to extreme heat and more than 65 per cent of the residents would be affected by flooding.

“The system will provide early warning alerts to residents about imminent weather events, including flooding, enabling timely action.

“The project value lies in its self amortising nature, strong revenue, growth potential and scalability to other regions, with a focus on private sector design, build, finance and operate facilities with minimal government intervention,” he said.