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How to Start Waste Management Business In Nigeria

Waste Management Business

Introduction to Waste Management Business In Nigeria

Waste management can be defined as the process of picking up, handling, and recycling waste. Waste management is A METHOD OF WASTE DISPOSAL which helps achieve a safer environment for everyone.

It is also a method that puts our waste in good use. There is a lot of potentials in the human waste recycle industry, lots of money making potentials. Waste management has also been around for years, but was recently industrialized and quite a few people have tapped into the money making potential of this business and made millions. This business literally justifies the saying “shit business is good business.” There are three main types of waste viz:

  1. Food and garden waste
  2. Mixed dry recycling
  3. Non recyclable waste

As seen above, you can focus your waste management business on collection, reselling and recycling of any waste recyclable above.

The waste management business is still relatively new in Nigeria and West Africa hence there isn’t a stiff competition yet. This business can be classified as a multi-million Naira business, there are already some Nigerian entrepreneurs raking in millions from the business. In this guide we will be sub dividing the waste management business into 3 categories:

  1. Direct Waste Management
  2. Middle man waste management
  3. The Recycler

The above sub divisions are different ways you can engage in waste management business. They are sub divided as there is difference in capital and operation cost for the 3 divisions, there is also difference in income potential.

Starting a waste Management Business in Nigeria

Capital Required

Direct Waste Management – 1000 Naira
Middle man waste management – 20,000 – 30,000 Naira
The Recycler – 20,000,000 million Naira and above.

Operation Process

These are the operation processes for the three different categories in waste management business:

  • Direct waste management: The direct waste management is the least capital intensive form of doing the waste management business. It is the most difficult as well. To do the direct waste management business, all you need is a bag or large container, you would go by yourself to refuse dump sites and residential areas to pick up recyclable dirt and waste such as plastic bottles and polythene bags. When you have enough quantity, you can go to state official dump sites and sell them to resellers or recycling companies. This requires almost no money to start up.
  • Middle man waste management: To start up a middle man waste management business, you would need more capital. This system is self explanatory. You need some money, although low, reach out to the waste recycling companies in your locality, inform them of your services and supply them with waste products. Then to get waste products, you source for people who pick up the waste directly and buy from them, then sell to the recycling companies with a higher margin and keep the profit. This is in simple terms, buying and selling of waste products.
  • The Recycler: Starting up this form of waste management requires that you learn the rudiments of waste recycling. Possibly from an already existing waste recycling plant or acquire scholarly knowledge. This is the most capital intensive form of waste management business. You need factory equipments, an office and factory space. Basically, the recycler buys waste from the middle or direct waste managers and recycles them into new products which he in turn sells in the market or to product companies.

Equipment Needed for Waste Management Business

These are the equipment needed to start up your own waste management business:

  • Direct waste management:
    • You need a big enough storage bag
    • Guts
    • You might need a license to operate as a waste collector in some states. The cost of this also varies but is relatively very cheap.
  • Middle man waste management:
    • License: In some states you require a license to operate a waste management business. This law however isn’t in full effect yet.
    • Money to buy waste from the direct collectors 20,000 or as much as you have. The more you can buy, the more your profit.
  • The Recycler:
    • Recycling machines: There are different kinds of recycling machines for different kinds of waste, you would buy the machine best suited for the waste you wish to recycle, a typical recycling machine is expensive. Below are some recycling machines you would need;
      • Biomass carbonization machine- 7 million Naira
      • Waste sorting machine- 10 million Naira
      • Carbon black processing plant- 6 million Naira
      • Waste distillation plant – 18 million Naira
      • Waste plastic pyrolysis plant- 15 million Naira
      • Waste plastic recycling plant- 11 million Naira
    • You might need a license to operate as a waste collector in some states. The cost of this also varies but is relatively very cheap.You also need to obtain a license for this business from your state government.
    • You also need to rent an office and factory space or build one if you can finance it. This would cost you 5 million Naira, for a large factory space.
    • Employees and factory workers would also be employed to man the factory.
    • You also need at least 2 million Naira and above to buy waste in large quantity.

Raw Materials needed for Waste Management Business

You need a lot of wastes for sale and recycling.

1 Year Income Projection

These are the income projections for the various system of waste management business in Nigeria.
Note: For this analysis we will be using polythene.

  • Direct waste management: Let’s assume you manage to collect 100kg of polythene per day, a kilo of polythene is sold for 50 Naira, hence 100g is sold for 5000. In 30 days, the monthly income would be 5000*30 = 150,000 Naira. In a year that would be 150,000 Naira * 12 = 1800000. One point eight million Naira.
  • Middle man waste management: This also has high income potentials though less profit margin, if you are able to purchase 500kg of polythene and resell per day. 500KG May cost you 40 Naira per kilo and 20,000 in total due to the fact that you’re buying in bulk. Resell for 60 Naira per kilo and 6000 per 100kg. That is 30,000 Naira per 500kg and a profit of 10,000 Naira per day. In 30 days it is 300,000 Naira. In 12 months 300,000 * 12 = 3600000. Three point six million Naira.
  • The Recycler: This has the highest income potential. After mass recycling waste products, you can sell the new products at a very high margin product. The profit potentials are high; most waste management recycling plants make tens of millions in revenue per year.

Challenges and Risks involved in Waste Management Business

  • It is ridiculing to be seen collecting waste. But you should take pride in honesty of labor.
  • Collecting waste may expose you to unhygienic circumstances which may result in ill health. You should always practice save hygiene and cover up while collecting waste.
  • Sourcing for waste may be extremely physically demanding
    There is a risk of losing your investment if you start the business without proper research and plan.

Getting Sales

To drive sales for your business, establish contact with waste buyers and waste recyclers in your area and make sure you are consistent in the supply of good waste.

YouTube video tutorial

Watch this video on how to start a waste management business

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