The Association of Waste Managers of Nigeria (AWAMN) has urged the government to implement a cost-reflective tariff for waste management services, citing rising operational costs and a widening revenue gap.
This call was made by the association’s President, Mr. Olugbenga Adebola, during an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
He described the current tariff regime as unsustainable, noting that while sectors like telecommunications and power adjust prices for inflation and exchange rates, waste management continues to rely on outdated tariffs.
Adebola stressed that without a tariff structure that allows for proper cost recovery, waste management businesses in the country will face collapse.
“The Association of Waste Managers of Nigeria (AWAMN) has called on the government to implement cost reflective tariff for business sustainability.
“Mr Olugbenga Adebola, President, AWAMN, disclosed this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
“Adebola described cost recovery as important to the preservation of any business.He said effective and efficient waste management cannot be achieved without cost cost-reflective tariff. Adebola noted that any business without cost reflective tariff would die a natural death,” the NAN report read in part.
Adebola highlighted the recent surge in diesel prices, a key cost for waste collection. While the last tariff adjustment in low-income areas was in 2022 when diesel cost N600 per litre, prices have since soared to N1,700 before dropping to N1,300 following intervention from Dangote Refinery. Despite these fluctuations, waste service tariffs have not been adjusted.
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Adebola further explained that waste management operations are dollarized, with truck costs calculated based on the prevailing exchange rate.
- He revealed that AWAMN has secured a €50 million Memorandum of Understanding (MoU) for infrastructure upgrades, including truck acquisitions and recycling systems. However, he cautioned that such investments cannot be sustained without a proper cost-recovery mechanism.
- He also criticized the current subsidies, noting that operators receive as little as N200,000 to N500,000, while the cost of a single truck tyre can reach N400,000. A 2023 cost analysis showed that operating a waste truck in Lagos for one trip costs between N167,000 and N180,000, but operators often earn less than N70,000 per trip, creating a severe financial imbalance.
Adebola stressed that these issues need to be urgently addressed for the sector to thrive, advocating for a tariff system that accurately reflects the economic realities of Nigeria.
