The Lagos State Government has announced a $400 million plan to establish a Waste-to-Energy (WTE) plant in Epe as part of efforts to address the state’s growing waste management challenges, supply clean electricity to up to two million residents, and reduce climate-related risks such as flooding.
Commissioner for the Environment and Water Resources, Mr. Tokunbo Wahab, announced the initiative on Wednesday at the Lagos Investors Summit 2.0, held at Eko Hotel and Suites, Victoria Island, according to a statement published on the state government’s website on Thursday.
He stated that the project would be delivered through a private sector-led design, build, finance, and operate model, with limited government involvement.
The plant is projected to deliver a 12% Internal Rate of Return (IRR) over a 20-year period, supported by electricity tariffs and a tipping fee.
“The Lagos State Government on Wednesday reiterated its commitment to ensure a reduction of the quantum of waste ending up at the landfill sites with the adoption of new strategies such as “Waste to Energy Plants” in the state.
“Commissioner for the Environment and Water Resources, Mr. Tokunbo Wahab, made this known at the Lagos Investors Summit 2.0, held at the Eko Hotel and Suites, Victoria Island, saying the Plant is an innovative project designed to convert waste to energy by addressing both efficient waste management and energy generation for Lagos State,” the statement read in part.
It added, “According to him, the value proposition of the Waste to Energy Plant anticipates an Internal Rate of Return (IRR) of 12% over a 20-year operating period, underpinned by electricity pricing and the introduction of a tipping fee.
“He mentioned that the facility is proposed to be situated at Epe with a projected Capital Expenditure (CAPEX) of around $400 million.”
The statement noted that the proposed Waste-to-Energy (WTE) plant in Epe will convert municipal solid waste into electricity, offering a dual solution of efficient waste management and improved energy access.
Wahab described the project as critical infrastructure aligned with Lagos State’s climate action goals and the National Energy Transition Plan.
He noted that 80% of landfill capacity is nearly exhausted, only 63% of households are covered by formal waste collection, and 67% resort to illegal dumping—factors that worsen flooding by blocking drainage channels during heavy rains.
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Beyond waste reduction, the project is expected to support flood prevention, boost energy security, and deliver clean power to densely populated areas. Wahab highlighted its carbon-conscious design and emphasis on sustainable disposal.
- He also announced an Early Warning System for Extreme Weather Events to improve disaster preparedness, protect infrastructure, and reduce climate-related risks.
- By 2050, over 65% of residents could face severe flooding, potentially disrupting more than 1,000 health and education facilities.
The WTE initiative was announced under the summit’s theme, “Scaling Action: Bold Solutions for Making a Lagos 21st Century Economy,” which promotes investment in infrastructure, climate resilience, and sustainable development.
