When you see the phrase “recycling business in Nigeria”, you may wonder if recycling is doable and sustainable in Nigeria. This is mostly a result of the poor maintenance culture and inconsistent waste management practices.
As surprising as it may seem, recycling is a viable and untapped business you can start in Nigeria. This article tells you everything about the recycling business in Nigeria and how to get started in 8 quick steps!
Understanding Recycling Business in Nigeria
Recycling simply means collecting and transforming waste products into new and useful ones. There are so many things that you can recycle in Nigeria. These include nylon, paper, plastic, wood, glass, etc.
Are you aware that five well-established entrepreneurs specialise in waste recycling in Africa? Only two of them are from Nigeria. This recycling business is a goldmine that you can venture into.
Still not convinced yet? Here are just a few reasons you should start a recycling business in Nigeria.
Why Should You Start a Recycling Company in Nigeria?
Here’s why you should start a recycling business in Nigeria:
- High demand: Nigeria produces about 60 million tons of waste in a year (excluding the constant increase in population). This implies that if you start a waste recycling business in Nigeria, it is sustainable. Also, you will be solving a recurring problem while generating profit in return.
- Environmental benefits: Recycling different materials, such as plastic and nylon, goes a long way toward conserving scarce resources. Recycling also reduces the harm caused to wildlife and humans.
- Economic benefits: Recycling reduces the need to produce new products from scratch. This helps to conserve the economy and channel funds to more urgent sectors of the country.
- Highly profitable: Venturing into the plastic recycling business in Nigeria can be very profitable. As long as you have the raw materials and funding to ensure the sustained growth of the business.
- Innovation and technological development: The recycling industry encourages technological innovation, especially if you partner with a foreign company. These innovations will help you simplify waste sorting and processing. It will also set your company apart from other recycling businesses in Nigeria.
Types of Recycling Businesses in Nigeria
We’ve painstakingly compiled a list of recycling businesses you can start in Nigeria. This will definitely give you an idea of what it’s all about. These recycling businesses include:
Nylon Recycling Business in Nigeria
The nylon recycling business in Nigeria is a business with incredible potential when it comes to generating profit. Like all businesses, it has setbacks. For this, the challenge is gathering recyclable nylons. First, let’s explain how it works:
You can buy recyclable nylon from the sellers. You can also make arrangements with event centres for more supplies of used nylons. You can opt to resell those recyclable nylons to buyers. You can make a profit of up to N14,000 daily, depending on the buyer.
Alternatively, on a larger scale, you can collect and process the recyclable nylons to make recycled products, sell and make profits.
Plastic Recycling Business in Nigeria
The plastic recycling business in Nigeria involves getting recyclable plastic bottles and processing them. Various recycled products that can be made include containers, bags, and so on. It is a great business idea for potential entrepreneurs. This is because plastic overload is a major pollution problem in Nigeria.
The good thing about this business is that you don’t need significant capital to begin. You can partner with a renowned plastic recycling factory in Nigeria. There, you can learn the ropes and gradually start your own recycling business.
There are different types of plastic bottles. Hence, the first step is to find out what the recycling factories require and how to gather the plastic bottles. You also need to figure out how to deliver them to the factories for recycling.
Waste Recycling Business in Nigeria
This entails gathering waste items such as plastics, nylon, and cartons sorting and processing them. Then, you can sell them to recycling companies.
The waste recycling business in Nigeria is capital-intensive, like other recycling businesses. So, if you are on a tight budget, it is advisable to consider leasing the equipment you will need. This is applicable if you want to process the waste yourself with the aim of producing recycled products.
Wood Recycling Business in Nigeria
Wood recycling involves the collection and processing of wood for various recycled products. These recycled products include furniture, pallets, crates, animal bedding, and so on. There are various types of wood recycling businesses you can start in Nigeria. This includes the supply of wood to furniture manufacturers in Nigeria, wooden gift items, and the rest.
Just like plastics, there are different types of wood that are used for the production of different recycled materials. Hence, it is left for you to research the ones in demand in your area as well as potential buyers.
Rubber Recycling Business in Nigeria
This business is focused on reprocessing discarded rubber products in order to manufacture different recycled materials. These recycled materials can be rubber mats, rubber sandals, shoes, and the rest.
There are different types of rubber that can be recycled into rubber-based products. The footwear industry is thriving in Nigeria. This is very useful during the rainy season because of the bad drainage systems in many states. This is an unharnessed recycling business that is not so popular but has vast opportunities.
Clothing Recycling Business in Nigeria
Everyone wears clothes and needs to purchase new ones at some point. This makes clothing recycling a viable business venture. There are a ton of opportunities in clothing recycling. These include combining recyclable clothing to make new ones, producing vintage clothing that is in high demand, and so on.
You can also go digital by creating a website that swaps used clothes for new ones produced via recycling. Other business lines, coupled with a comprehensive business plan, are available if you are determined to make them work.
How to Start a Recycling Business in Nigeria
Now that you know the types of recycling businesses you can venture into, the next question is: how do you start?
Here are eight quick and straightforward steps to achieve this:
Acquire the Necessary Knowledge
Before you even consider starting a recycling business in Nigeria, you need to research and understand certain things. These include how the processing of recycled materials works and the different types of materials that can be recycled. You can even take an online course to get extensive knowledge that will guide you on what to do.
Alternatively, you can study the underlying processes involved in the recycling industry. You can do this if you know someone who is already established in the business.
Planning and Market Research
Before you develop a detailed business plan, carry out market research. Gather information on the type of recyclable materials in demand, as well as the competition. This will help you understand what you need to do to set yourself apart and succeed in the recycling business.
Understand Laws on Recycling
The next thing you need to do is inquire about and understand the legal regulations regarding waste collection and processing in your area. Also, acquire the licenses needed to collect and process waste in the community.
Build Relationships and Networks
Establish rapport with waste collection companies, schools, and industries to ensure a constant supply of recyclable materials.
Funding and Investment
As part of your business plan, you need to ensure you have adequate startup capital. Additionally, take into consideration the equipment and facilities you need.
Generally, you will need at least N500,000 to start a recycling business in Nigeria. This will cover the cost of some equipment and other facilities you will need. You can then scale up in the future when you start making profits.
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Get the Materials and Equipment Needed
Set up collection points for recyclable materials as well as a storage space. This includes facilities where the waste will be sorted before processing. The materials you will need include shredders, separators, balers, a wheelbarrow, a truck, and the rest.
Hire Employees
It is impossible to do everything on your own, even as a startup. This is a result of the many processes involved. Therefore, you can start with a few employees that will handle pressing issues. You will especially need collectors of recyclable materials.
Partnership and Marketing
The next step is to collaborate with other recycling businesses, industries, and the government in order to secure more funding. This business is capital-intensive from the onset. You can also develop marketing strategies to create more awareness of your recycling business and the recycled products that you produce.
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Different Recycling Opportunities in Nigeria
There are different types of recycling sectors you can start and sustain in Nigeria. These include;
- Waste collection services for households, businesses, schools, etc.
- You can start a plastic recycling business in Nigeria: Here, you can turn the waste into raw materials for producing various plastic products in demand.
- Nylon recycling: Starting a nylon recycling business in Nigeria is also lucrative. You can supply industries with raw materials for packaging and production.
- Waste recycling: You can set up a waste recycling business in Nigeria. Then, you can go on to process the waste into organic waste, which can be helpful for agriculture.
- Manufacturing recycled products: You can produce new products from recycled materials like paper, textiles, etc.
- Renewable energy projects: It’s no news that electricity is an escalating issue in Nigeria. Hence, you can explore adopting waste-to-energy technologies where you can convert waste into renewable energy. You will need foreign collaboration for this venture.
- Eco-friendly packaging solutions: You can also produce and market packaging alternatives for manufacturing industries in Nigeria, like Unilever. This also reduces environmental pollution.
How Profitable Is the Plastic Recycling Business in Nigeria?
You can make a net profit of up to 25% after the first six months of starting a plastic recycling business. That means if you start with N500,000, you can make a profit of roughly N125,000. The higher your startup capital, the higher the net profit you will make. So, ensure that your business plan is well-written.
There are three main stages in the plastic recycling business in Nigeria. These include the sorting stage, the collection stage, and the processing stage. All these cost money, which you will factor into your business plan. You can collaborate with manufacturing companies that need recyclable plastics to cut costs on your part.
Also, take into consideration potential employees, especially at the collection and sorting stage of plastic recycling.
Bottom Line
All the recycling businesses in Nigeria mentioned in this article are lucrative. However, a lot of factors come into play to make them successful. As much as you are determined to be an entrepreneur, it is only advisable that you start any business after first learning the ropes.
However, it is of paramount importance that you expect challenges, as they are inevitable. Even after careful planning has been put in place, this shouldn’t deter you. With the right approach and mindset, you can start and gradually build a profitable recycling business in Nigeria.
Frequently Asked Questions
Which Recycling Business Is Most Profitable in Nigeria?
A type of plastic called PET (polyethene terephthalate) plastic (such as those used to package carbonated drinks) is the most recycled plastic waste in Nigeria. They are also the most profitable.
Which Wastes Are Considered the Most Profitable for Recycling?
There are many profitable niches you can tap into in the recycling industry in Nigeria. These include paper, plastic, nylon, metal, clothing, and so on.
What Waste Is Most Easily Recyclable?
The most easily recyclable waste is plastic. However, not all plastics can be recycled. Hence, you can recycle PET plastics, as these are the most in demand.
