Plastic recycling is one of the popular recycling businesses in Nigeria. Recyclable plastic materials include plastic bags, plastic water bottles, PET (polyethylene) bottles, etc.
The plastic recycling business in Nigeria is very lucrative as there is an existing market for it. One could rise to the level of a multimillionaire in a few years if the job is taken seriously.
Even though this is a high-income business, not many people have discovered this or ventured into it. This could be because the start-up capital to start a plastic recycling business in Nigeria is on the high side.
Aside from the monetary benefits, starting a plastic recycling business in Nigeria can be a way of promoting community health in the country. It is an eco-friendly process that helps to give back to the community.
If you are considering community service, starting a plastic recycling business in Nigeria should immediately come to mind. Although the business is recently starting to gain ground in Nigeria, a lot of people still need to be educated about the processes involved in starting a plastic recycling business in Nigeria.
This article discusses how to start a plastic recycling business in Nigeria in detail.
What is Waste Recycling Business?
The waste recycling business involves turning waste materials into new useful products. In this case, plastic is the waste material that needs to be recycled.
How Profitable is the Plastic Recycling business?
In Nigeria, plastic collectors are paid about 80 -100 Naira per kg. This can amount to about $200 per tonne depending on the quality of the plastic. PET plastics are the most recycled plastic waste in Nigeria. They are also the most profitable. To start a plastic recycling business in Nigeria, you should consider the amount to pay plastic collectors.
How to Start a Plastic Recycling Business in Nigeria
To start a plastic recycling business in Nigeria, you can choose to collect the recyclable materials and sell them to recycling companies, or you can decide to be the recycling company buying recyclable materials from people. However, doing any of these depends on the capital involved in the business.
With no capital at all, you can decide to start by gathering waste plastic materials from your neighborhood and selling them to the recycling companies, save up or get a loan to begin your own recycling company. You can also partner with others who can support your business.
Below are 10 tips to guide you in starting a plastic recycling business in Nigeria.
To start a plastic recycling business in Nigeria, the first important step is to conduct a research. Finding people who do the same or render similar services to yours can give you insights into how you decide to run your business.
Conduct market research to find out if there is someone else running the same business in your area or close, how they run their business, and what pricing system they use.
Read also: How to start a Tailoring Business in Nigeria.
Create a budget
To start a plastic recycling business in Nigeria, especially to own a recycling company, requires a lot of capital to buy the required equipment and machines. You may want to create a budget to start with.
Also, a budget should include licensing and permit, business registration, transport vehicles, recycling machines, land space or site, and salary of employees as they are mandatory if you want to start a plastic recycling business in Nigeria.
The amount needed to start a plastic recycling business in Nigeria depends on the size of the business and the kind of processes you choose to operate.
Create a business plan
Running a well-structured plastic recycling company requires a good business plan. A business plan is a formal document containing details of how you intend to run your business. A good business plan can help you when applying for loans or grants to begin your business.
A well-structured business plan should include the following details:
- The goals and objectives of the organisation
- Feasibility study or market research
- SWOT analysis
- Competitive advantage
- Financial projections
- Marketing strategy
Get capital for your recycling business
After the estimation of capital has been done, the next thing to do is to source for a way to get it. There are several funding options. Some of them are family and friends, bank loans, angel investors, crowdfunding, microfinance banks, venture capitalists, strategic partnership, startup Incubators, international grant opportunities, etc.
The requirement for getting capital is usually a detailed business plan and other support documents about your business. Investors need to know that you have a good understanding of the business you are going into before investing. Starting a plastic recycling business in Nigeria requires you to consider this step carefully.
Register your business
The next step to take to start a plastic recycling business in Nigeria is to register your business with the Corporate Affairs Commission (CAC). You must do this to avoid unnecessary harassment from government officials.
You can choose to register your business as a sole proprietorship Business, a Limited Liability Company, or as a social enterprise like NGOs.
Although the cost and requirements for each enterprise are different, you can start with the cheapest and upgrade at a later time as you grow. The registration procedures are quite easy now as you can register online through the CAC’s website without necessarily visiting their office.
Obtain the necessary Licences and Permits
You need to obtain the necessary documents to start a plastic recycling business in Nigeria. After registering your business, you will need to get all required Licences and Permits before commencing operations. For plastic recycling, you will need to get a License and Permit from organisations or regulatory bodies in charge of waste management in your locality.
An example of such a body is The Federal Ministry of Environment, The National Association of Plastic Manufacturers and Recyclers, and State Waste Management Authorities like Lagos State Waste Management Agency (LAWMA), and State Environmental Protection Agencies amongst others.
Acquire the relevant equipment
After all necessary documents have been obtained, the next step to take to start a plastic recycling business in Nigeria is to get the necessary equipment or machines needed for recycling. Depending on your budget, you can opt for leasing or purchasing new equipment.
You may need other equipment such as plastic waste bins, weighing scales, washing gear, etc. for collection in case you have not planned to start recycling on your own.
Acquire a land or space
Consider the physical location of your site based on proximity to the market and easy accessibility. It could be a place where you receive all plastic waste and store them before sending them to the recycling companies or a place where you can carry out the recycling on your own.
After sorting out whether you are collecting plastics for recycling companies or recycling the waste yourself, you need to hire employees based on the decision you have made.
Consider hiring people that will manage each step of the recycling process. You can decide to pay plastic collectors a certain percentage per kilogram brought for recycling. Try to maintain an awesome customer relationship with these employees to make your business grow faster.
Promote your business
Gaining more ground is the sole aim of every business and this can be achieved through advertising your business. Make sure to list out all the advantages recycling plastic waste will bring to the environment when advertising.
You can also search for more partners both local and international through advertising.
The Basel Convention Coordinating Centre for the African Region held a workshop that hosted stakeholders in the plastic waste value chain in a meeting that took place in Lagos on August 10, 2022. The project was carried out to promote environmentally sound management of plastic waste in Nigeria.
This and many more like it has helped to recognize the importance of plastic waste management in society and its potential as a good business to venture into.