The Recyclers Association of Nigeria (RAN) is pleased to present the 2024 Industry Insight Report, a comprehensive analysis of the Nigerian recycling industry. This report provides key insights into the challenges faced by recyclers, growth opportunities, and practical recommendations for sponsors, development partners, and policymakers to support the sector.
About the Report
Nigeria generates an estimated 32 million tons of waste annually, with 15-27% being recyclable materials such as plastics, metals, and paper. Despite the significant potential for growth, the recycling industry continues to face numerous challenges, from financial constraints to logistical barriers.
Our 2024 Industry Insight Report captures the voices of RAN members, providing both quantitative and qualitative insights into the state of the industry. The report sheds light on key areas such as operational focus, geographical distribution, revenue generation, and major pain points that recyclers encounter in their day-to-day activities.
About the Report
Nigeria generates an estimated 32 million tons of waste annually, with 15-27% being recyclable materials such as plastics, metals, and paper. Despite the significant potential for growth, the recycling industry continues to face numerous challenges, from financial constraints to logistical barriers.
Our 2024 Industry Insight Report captures the voices of RAN members, providing both quantitative and qualitative insights into the state of the industry. The report sheds light on key areas such as operational focus, geographical distribution, revenue generation, and major pain points that recyclers encounter in their day-to-day activities.
Key Highlights from the Report
- Geographical Distribution: The majority of recycling activities occur in major cities like Lagos (37.5%), Enugu (12.5%), and Ibadan (7.5%).
- Value Chain Focus: 50% of respondents are primarily involved in the collection of recyclables, while only 10% focus on processing and manufacturing.
- Monthly Recovery Volumes: Operators range from low volume (12-50 tons/month) to high-volume operators processing over 500 tons/month.
- Revenue Insights: While 30% of recyclers earn less than ₦1 million/month, 40% report revenues between ₦1 million and ₦5 million/month.
Challenges in the Industry
- Access to Finance: 70% of recyclers report difficulty in securing operational capital.
- Regulatory Barriers: 50% face challenges with unclear or restrictive government policies.
- Logistical Issues: 60% of recyclers cite high transportation and infrastructure costs as major obstacles.
- Competition: 40% are concerned about competition from unregulated or foreign actors.
- Energy Costs: Inconsistent power supply and high energy costs are particularly challenging for processing facilities.
Opportunities for Growth
Despite these challenges, the report also highlights several growth opportunities within the sector:
- 50% of recyclers are looking to expand into new markets, both domestically and internationally.
- 30% are exploring the adoption of new technologies to improve efficiency.
- 20% are interested in product diversification by manufacturing final products from recyclables.
Recommendations for Sponsors
The report outlines actionable steps for sponsors and partners to support the industry, including:
- Funding and Investment: Establishing dedicated recycling funds to provide recyclers with capital for equipment and expansion.
- Infrastructure Development: Investing in transportation and logistics infrastructure to reduce operational costs.
- Policy Advocacy: Collaborating with RAN to advocate for favorable policies and tax incentives.
- Capacity Building: Providing training programs in business management, technology adoption, and market expansion.
- Market Access: Helping recyclers access international markets and explore export opportunities.
Download the Full Report
For a more in-depth understanding of the Nigerian recycling industry’s current state, challenges, and future opportunities, download the RAN 2024 Industry Insight Report here.
Contact Us
For inquiries, partnerships, or to learn more about how you can support Nigeria’s recycling industry, contact us at:
- Email: recyclersinnigeria@gmail.com
- Website: recyclersassociation.org
