Recyclable plastics have emerged as a remarkable opportunity for wealth creation in Nigeria. The plastic collection and recycling value chain has evolved into a thriving industry, offering job opportunities to thousands of individuals.
This rapidly growing green economy not only addresses plastic pollution but also provides meaningful employment for young people and those at the bottom of the economic pyramid. With bags of plastic waste being transported from collection points to recycling facilities becoming a common sight in Lagos, the transformation of waste into valuable products has gained recognition as a key component of the circular economy.
Investment Potential and Economic Impact
According to the Nigerian federal government and UNDP’s Imagine Nigeria report team, the green economy holds a staggering $250 billion investment potential in Nigeria. This potential can play a vital role in addressing the country’s high unemployment rate while fostering economic prosperity. The Lagos State Waste Management Authority (LAWMA) reported that the recycling economy in Lagos State alone generated approximately N18 billion in value as of 2021. This significant figure highlights the economic viability of the recycling industry and underscores its potential for further growth.
The Role of Stakeholders
In Lagos, plastic waste pickers, once overlooked, now play a crucial role in the recycling value chain. These individuals earn revenue by selling their collected waste to waste collectors, who, in turn, sell it to processors. The processors shred, form into pellets or shapes, and sell the recycled plastic products to consumers. Furthermore, the emergence of companies like Kaltani, which secured a $4 million in seed funding in 2020, signifies the growth and potential of the recycling sector in Nigeria. Other investments in bottle-to-flake and fibre recycling further support the country’s drive for net exports. Unilever Nigeria Plc. has also recognized the importance of recycling by recently granting $2 million towards collection and recycling efforts, emphasizing the creation of jobs and income generation.
Formalization of the Value Chain
Industry associations like the Food and Beverage Recycling Alliance (FBRA) have made significant strides in empowering individuals, with over 5,000 people, directly and indirectly, benefiting from their initiatives between 2011 and 2023. Additionally, the Association of Waste Pickers of Lagos, with the support of FBRA and other stakeholders, is working to formalize the informal waste pickers segment of the value chain. The registration of over 3,000 waste pickers in Lagos state highlights the commitment to improving the livelihoods of waste pickers, estimated to number over 5,000.
Global Market Perspective
The global recycled plastic value chain was estimated to be worth $40 billion in 2021, with a projected compound annual growth rate of seven percent from 2022 to 2031. The plastic waste management market, valued at around $35.4 billion in 2022, is expected to reach $44 billion by 2027. Key players in this global market include Veolia, Stericycle, SUEZ, and Terracycle.
Job Creation and Economic Opportunities
The recycling value chain provides a significant number of net direct jobs worldwide, primarily due to the high processing capacity involved. Moreover, it generates employment opportunities across various stages of the value chain, including collection, sorting, transportation, and recycling of waste. In the European Union, it is estimated that nearly 50,000 new direct jobs could be created by 2020, with an additional 75,000 indirect jobs supporting the sector. By 2025, employment in the recycling value chain could further increase to 80,000 direct jobs and 120,000 indirect jobs. Indirect jobs related to supporting operations, such as facility construction, equipment manufacturing, maintenance, and administrative positions, also contribute to job creation.
Conclusion
Recycled plastics have transformed from mere waste to a valuable resource, driving Nigeria’s green economy and creating meaningful employment opportunities. The growing investment potential, coupled with the economic impact witnessed in Lagos State and the involvement of key stakeholders, highlights the promising future of the recycling industry. As the global market for recycled plastics continues to expand, Nigeria has a unique opportunity to position itself as a leader in this sector, generating wealth and fostering sustainable development while mitigating plastic pollution. By nurturing the recycling value chain and providing support through regulation and investment, the Nigerian government can unlock substantial income potential and secure a brighter future for its citizens.
