Lagos to launch $400m waste-to-energy project to boost power supply

Lagos State Government has unveiled plans to adopt a waste-to-energy strategy aimed at reducing the volume of solid waste reaching landfill sites and enhancing energy security across the state.

Tokunbo Wahab, Commissioner for the Environment and Water Resources, announced the initiative in a statement on Wednesday, signed by the ministry’s Director of Public Affairs, Kunle Adeshina.

Wahab said the ambitious project, to be sited in Epe, would convert municipal solid waste into electricity, producing clean energy for up to two million residents. The plant is expected to cost $400 million and operate on a private sector-led design, build, finance, and operate (DBFO) model, with minimal government involvement.

He said the project is part of the state’s broader climate resilience and infrastructure development plan.

The waste-to-energy facility will offer a 12 percent Internal Rate of Return (IRR) over a 20-year period, sustained through electricity sales and the application of a tipping fee. It will also be designed as a carbon-conscious model, aligning with global climate goals.

According to Wahab, Lagos is currently grappling with several waste management challenges, including landfill sites operating at nearly 80% capacity, formal waste collection coverage of only 63%, and illegal dumping by over 67% of households.

“These challenges contribute significantly to drainage blockages and flooding during extreme weather events,” he said.

The commissioner warned that Lagos faces heightened climate risks, with projections indicating that by 2050, most parts of the city may experience extreme heat, and over 65 percent of the population could be vulnerable to frequent flooding.

To complement the waste-to-energy project, Wahab also revealed that the state is developing an Early Warning System for severe weather events. The system will enhance disaster preparedness, support infrastructure protection, and provide timely risk management data to residents.

Describing the project as scalable and self-amortising, Wahab said it would contribute significantly to Lagos’ push toward environmental sustainability and resilience in the face of climate change.