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How To Start A Waste Management Business In Nigeria

Waste Management Truck

Waste management is one of the most underdeveloped industries in Nigeria. People often look at waste management and recycling in these parts of the world as work underprivileged and uneducated do. But that could not be farther from the truth. Today, we are going to look at how to start a waste management business in Nigeria.

According to Statista, the global waste management industry was worth 2080 billion US dollars in 2019 and is projected to grow to 2339.8 billion dollars as early as 2027. So, you can see that the waste management industry is a serious business that can make you good money as an entrepreneur.

Waste management has become an endemic problem in Nigeria. In many cities and towns, people indiscriminately dispose of waste, and even though the law is against it, people tend to find a way around it without any consequences.

Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

See More: Start Your Own Recycling Business

Ordinarily, waste management in Nigeria falls to the local governments, but the local governments have shed their responsibilities due to corruption and negligence. Owing to that, many state governments have now opted for a public, private partnership system (PPP) where private individuals and entrepreneurs can engage in waste management activities after obtaining a license from the government.

This post will show you how you can start a profitable waste management business in Nigeria.

How To Start A Waste Management Business In Nigeria

Secure Capital

Like every other business, you need capital to start a waste management business in Nigeria. When starting, you need to research how much capital you will need to start your business.

In Lagos, for example, you need to buy a garbage truck to qualify for a waste management license from the Lagos State Waste Management Authority. So, you need to find out the requirements in your state, then cost how much it will require to start the business. Make sure that you also consider the cost of obtaining licenses, permits and registration.

Securing capital for a business in Nigeria could be herculean, but it does not have to be if you plan properly. You can use any of these- bootstrapping, family and friends funding, business loans, and investment from investors to start your waste management company. Click here to find out more ways that you can fund your business.

Register Your Business

After securing your capital, the next step is to register your business. When registering your business, make sure that you properly choose a company structure that fits your business model.

For example, if you register a business name, you will still need to obtain a Tax Identification Number (TIN) before opening a corporate account to accept payments legally. But, on the other hand, if you register a limited liability company, you do not need to obtain a TIN separately.

In conclusion, make sure that you research properly before opting for a particular business structure. The best way to go about it is to marry the different business structures with your organisation’s unique needs, then opting for the one that works best.

To register your business in Nigeria, contact ReDahlia at contact@redahlia.com. They make the process seamless for you.

Determine Coverage Area(s)

It would help if you also defined the areas you want to cover when starting your waste management company. The chances are that you will be competing with other waste management companies who already cover some areas, so ensure you consider your coverage area carefully.

Additionally, I put this step before license application because in many states, when you apply for a waste management license, there is a high likelihood that they will ask you which areas you intend to cover.

When trying to determine the areas your company will cover, consider important things like the area’s population, the earning power of people living in the areas, how motorable the area is etc.

Go from idea to starting your business in 30 days
Go from idea to starting your business in 30 days

Obtain License To Operate

Another important thing to note is that you need to obtain a government-issued license to operate a waste management company. The requirements for a waste management company differs from state to state, so make sure that you are familiar with the local requirements you need to get approved in your state.

For most states, you can obtain a waste management license and other necessary operation permits from the Ministry of Environment and relevant agencies. For example, the PSP Operator license is handled by the Lagos Waste Management Authority (LAWMA) under the supervision of the ministry of environment in Lagos. Do your research to know which agency is in charge of waste management licensing in your state.

Get A Dumpsite

Getting a dumpsite is an integral aspect of starting a waste management company. You are going to be collecting and disposing of waste for your customers. It, therefore, makes sense that you have a dumpsite where you are legally allowed to dump the waste.

The fact is that it is illegal for you to dump waste illegally, which is why most governments have designated dumpsites where legally registered waste management companies can dump waste. So look for one in your community, and approach them to understand the requirements for you to start offloading waste there.

Buy Necessary Equipment

Depending on the waste management industry sector that you want to work in, you will need different types of equipment to operate your business. Some important tools you will need include gloves, boots, shoves, overalls, signs and others.

The caveat is that you have to first decide on the kind of services you will provide, then buy equipment and tools that will help you provide those services seamlessly.

Market Your Business

Finally, it would be best if you marketed your business to get customers. The first idea is to go to the area where you intend to serve and let them know that you will be offering a waste management service in that area. Let them know that you are there to serve them and that you will appreciate referrals.

Another way you can market your services is by contacting different landlord associations around the area you want to serve and give them incentives to refer their tenants.

See More: How To Write The Best Marketing Report As An Entrepreneur


Entrepreneurship is about seeing opportunities for solving problems and taking advantage of them. For example, Nigeria has an endemic waste problem, and that is an opportunity for entrepreneurs to take advantage of and create solutions that tackle the waste problem.

Following the steps, I listed above, you can start your waste collection and disposal business.

Are you looking to start other businesses? We have resources that will help start both online and offline businesses in our shop. Follow the link to get them.

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