The Lagos State Government announced yesterday its plan to significantly reduce the volume of waste accumulating in its landfills by embracing innovative ‘Waste to Energy Plants.’
This new strategy aims to tackle the state’s substantial waste management challenges while simultaneously boosting its energy generation capacity.
Tokunbo Wahab, the Commissioner for the Environment and Water Resources, unveiled this initiative at the Lagos Investors Summit 2.0.
He described the Waste to Energy Plant as a transformative project designed to convert solid waste into a viable energy source, aligning with the summit’s theme: ‘Scaling Action: Bold Solutions for Making a Lagos 21st Century Economy.’
The project, he noted, represents a crucial opportunity to leverage municipal solid waste as a valuable resource for power generation.
Wahab detailed the pressing waste management issues confronting Lagos, including approximately 80% of existing landfill capacity nearing its end, only 63% formal waste collection coverage, and a significant 67% of households resorting to illegal dumping.
These challenges, he stressed, are major contributors to the state’s persistent flooding problems, particularly during extreme weather events, as blocked drainage systems exacerbate water buildup.
READ ALSO
From a financial perspective, the Waste to Energy Plant is anticipated to achieve an Internal Rate of Return (IRR) of 12% over a 20-year operational period, supported by strategic electricity pricing and the introduction of a tipping fee for waste disposal.
Wahab highlighted several unique benefits of this project beyond just waste processing.
These include enhanced flood prevention, increased energy security for the state, revenue generation, and a contribution to Nigeria’s National Energy Transition Plan.
The initiative is also expected to facilitate the removal of solid waste from densely populated areas, ensure environmentally sound waste disposal, improve landfill management, promote carbon-conscious facility design, and generate clean energy sufficient for up to two million Lagos residents.
The proposed facility is planned for Epe, with a projected Capital Expenditure (CAPEX) of approximately $400 million.
The Commissioner also drew attention to Lagos State’s high vulnerability to climate change impacts.
He projected that by 2050, most parts of the state could face extreme heat, and over 65% of residents might be affected by flooding.
Climate change-induced extreme weather events have already caused severe disruptions to critical infrastructure, with over 1,000 education and health centers anticipated to be impacted by flooding.
To further address these climate change and flooding concerns, Wahab announced the adoption of an “Early Warning System for Extreme Weather Events.”
This system, he explained, will be self-amortizing with strong revenue growth potential and will be easily scalable.
It is designed as a private sector-led project (Design, Build, Finance, and Operate) with minimal government intervention, aimed at disaster management, data banking, and risk protection to safeguard lives and property from severe flooding and heat waves.
