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Wednesday, 29 May 2013

WASTE RECYCLING: Investment Opportunity in Nigeria




INTRODUCTION:

Recycling is an economic development tool as well as an environmental tool. With the quantity of materials are thrown away each day, it is important to ensure that the recyclable materials are not going to the landfill but to the recycling centers.



Recycling create reduction and offer direct development opportunities for communities when collected with skill and care, and upgraded with quality in mind. Discarded materials are local resource that can contribute to local revenue, job creation, business expansion and the local economic base.

The raw materials are never in short supply as Lagos (and other commercial cities in Nigeria) is known for its huge generation of waste. From figures available from LAWMA, 9,000 metric tones of waste is generated daily with about 1,200 metric tones being converted into other uses. This creates room for the establishment of recycling plants in Lagos and indeed other states of the federation.

In an article published by “Daily times Newspaper” revealed an example of a recycling company in Nigeria that made over $61 million from exporting recycled metallic waste.
The Nigerian company, the “Sun and Sand” Industries Ltd says 95% of raw materials are sourced from metallic wastes that are recycled for export to manufacture cars and ship parts. Sheweta Satija Managing Director, Sun and Sand Industries disclosed:
Satija said that since 2005, the company had been recycling metallic waste from Nigeria for export to high
technological countries such as Japan, Hong Kong, UAE and India, for the manufacture of cars and ship engines, radiators and other parts.

According to her, recycling is an industry that adds value to the Gross Domestic Product (GDP) of a country that want to create wealth and generate employment (such as Nigeria).
Satija said that the company, which was recently awarded the Best Exporter of 2011 by the Nigerian Export Promotion Council.

As one the few companies handling metal commodities in the country, we are 100% export oriented. We are adding value to the country’s GDP and contributing to the growth of the economy.
Satija said that the company, with a work force of more than 5000 which is mostly made up of Nigerians, was determined to sustain the business of recycling in the country.
According to her, recycling of waste not only ensures that the environment is clean, it also creates jobs in the country and should be encouraged.

The Sun and Sand Industries Ltd, an Indian owned company with its headquarters and factory in Ota, Ogun state. Made 61.43 million dollars in profit in 2010.
Article source: Daily times Newspaper
Date Published: November 10, 2011
Editor: EMMANUEL OKUBENJI.


Quote: Recycling is an industry that adds Value to the Gross Domestic Product of a country and is always welcomed by any country that wants to create wealth and generate employment (such as Nigeria).
Waste recycling here in Nigeria, its an untapped business that if you decide to go into today you are sure of making your cool money. The fun of it is that you might even decide to start now without you having necessary capital at hand and still be making your money from the business.
But in this article I’ll be introducing to you polythene (Nylon) recycling and how to make money from it.


Waste Polythene (nylon) and specific examples


Waste pure water nylon supply business in Nigeria known as waste polythene recycling is another golden opportunity for serious entrepreneurs. The essence of being an entrepreneur is the ability to discover opportunity and act on it promptly, and this business is just such kind of opportunity.

Must read: How to make and earn from hand made liquid soap, how to start concrete block industry

All what you need to go into this business is information even just as you need a job, business opportunity or ideas, and here is one, if you are hard working you will need little or no money to start this business. Information is the backbone of any idea or better information still information is said to be the mother of all ideas because without information there may be likely no idea.

In Nigeria just like anywhere else in the world you need to be creative to make money. Supplying of waste polythene for recycling is a lucrative business, try it and you will have a testimony to share. Companies, agencies and even the government will be searching for for investment.

What are waste polythene and specific examples?

Waste polythene is polythene materials that has been used and discarded. Waste polythene can be transformed into useful raw materials through the process of recycling. Such waste polythene include pure water sachet, black, white or any coloured poly bags, nylon used in wrapping new electronics like computer, television sets, cellphone or pharmaceutical drugs, even bread wrappers and all wrappers made of nylon.

Wastes are nuisance; yes they are but are also hidden wealth. Nylon bags made from polythene can all be converted into raw materials that can still be used for production of product like bathroom slippers, plastic overhead tanks, same nylon, plastic leathers, plates etc. Now, lets zero in our attention to two types of waste polythene materials.

Types or Categories of Polythene:

The basic types of wastes polythene in this context is categorized into two major types, namely:
Low density
High density

Low-Density Polythene (LDPE) is a thermoplastic made from petroleum and is commonly recycled and has the “4” as its recycling symbol. LDPE is defined by a density range of 0.910-0.940/cm cube.
It is not reactive at room temperature except by strong oxidizing agents, and some solvents cause swelling.

It can withstand temperature of 80 degree Celcious continousely and 95 degree celcious  for a short time. Made in translucent or opaque variations, it is quite flexible and tough but breakable. Example of low density materials are pure water sachet and cellophanes bags.

High Density Polythene (HDPE) or Polythene high Density (PEHD) is a Polythene thermoplastic made from petroleum. It takes 1.75kg of petroleum (In terms of energy and raw materials) to make one kg of HDPE. HDPE is commonly recycled, and has the number “2” as its recycling symbol. An example of high density materials is the one used in packaging of pure water sachets.

It is important to state that not all plastic is considered economically viable by processor. Below is the list of materials accepted in the recycling Business:
Shopping bags, laundry bags, pure water sachets, yoghurt wrappers, soft poly bags, hospital drip bags, pop corn wrapper, bread wrapper, cellophane.

Below is the list of materials NOT accepted for recycling:
Indomie Noodles wrapper, detergent bags, biscuit wrapper, milk sachet, tea wrapper and propylene bags (but some factories do accept some these forbidden polythene).

How to Earn from Recycling Waste Polythene


With the amount of garbage that people are throwing away each day, it is important to ensure that the recyclable materials are not going to the landfill but the recycling center. This creates room for establishment of recycling plants in Lagos and indeed other states of the federation.

The investor can start the business through the following ways:
Supplier
Collection center operator
Recycler

As a supplier/collector you collect waste polythene materials from different sources and supplies to the collection center operator who process the materials and  sell to the recycler.

How much can I Earn as a Supplier?
Anyone can make between N30, 000 to N300, 000 monthly supplying waste polythene or waste nylon. The secret is to start small and gradually increasing your supply channels or number of plants you supply.

A kilogram of polythene is sold for N30-N50, depending on where you supply. You can gather and supply about 100kg to 300kg daily. Lets say you are able to get just 100kg daily, you will be making N30 X N100 = N3000. If only you can make N3000 a day and work for only 20 days a month, you will be making N3000 X 20 = N60,000. Is it not something worth living on? You may be wondering how a kg is measured, it is similar to the normal ones you know.

However there is basically no start up capital needed except optional like transportation which is quite easy to avoid; locate recycling plant near you, visit them, negotiate and finally start supplying them and start earning.

You may carry out more detailed feasibility study to get better understanding of the business in your environment. Find out things such as address and contacts of all factories and plants of waste nylon/plastic recycling in Nigeria, when and how to contact them, the current price for a kg and how to negotiate with them at your preferred price. This is one of the untapped business ideas in Nigeria that can make you wealthy forever.

How can I start and Earn as a Recycler?
The recycler recycles the product and make useful to the plastic industries to use.
For recyclers and producers: anyone can establish and start this business as long as you have the capital. Normally, a small scale recycling plant cost at least N2,500,000 and to be located on at least a plot of land.
While large scale take from N10,000,000 and above. Small scale plants produce average of 2 tones a day and 2 tones sells for USD953 in International market at USD1.05 per kg. From preliminary study the return on investment is about 60%.

How to Become a Recycler/Producer
As a recycler there are certain requirements in opening up a recycling business. Each state and community or city may have different sets of requirements. Therefore, it is important that you also request additional information from your local government office.
    
                   

Requirements: 
  • Establish your business. You may want to run it as a sole proprietor, a family co-ownership, a Limited Liability Company or a partnership. Get a business license and permit. With any small business, it is important to get a permit in order to operate your recycling business. 
  • Choose the recyclable materials to process. You can open a recycling center for all recyclable materials, but you may want to start with recyclable polytene first especially if you are just starting out and have very limited capital. Then gradually you should be able to expand to recycle bottles cans, scrap metals, tires and other recyclable materials. 
  • Get certified. Depending on your state’s regulations, you may need to register curbside collection programs, drop-off or collection programs. It is required to get certification for operators to be able to buy or sell labeled containers. 
  • Find a location that you will use as your processing facility. If you do not plan of doing the recycling yourself, you can just find a where you can let  people drop off their recyclable materials that you will then take later to the main recycling centers. This location can be a small stall or warehouse located close to supermarkets and other commercial locations that will allow you to operate a recycling business. You may also open up one in your neighbourhood, but check with your homeowner’s or local government association to determine if they will allow you to use your home as a processing facility. 
  • Buy or lease equipment to use. You would need a weighing scale, trucks, huge bins (one for each type of recyclable materials) and office equipment to help you run your business. 
  • Research the competition. If your city has plenty of recycling centers, you may want to research the type of processing they are running. You will be more profitable or be able to compete if you offer to accept a wide array of recyclable materials as opposed to concentrate only on one type. People would like to be able to go to just one location, sort of a one-step to save time and fuel when transporting the recyclable materials. 
  • Find sources of recyclable materials. Advertise your business by giving handouts or utilizing bill boards and local newspaper ads. 
  • Anticipate paying certain fees and taxes such as: business license fees, business tax certificate, federal income tax, state income tax. Check with your payroll taxes. Check with your state or local government for specific requirements.

Tips: 
  • Research the amount of recyclable materials that go into your landfill. You may be able to get some information valuable for to see how feasible it is to run a recycling business. 
  •  Connect with bigger recycling centers and establish partnerships with them if possible. They may need representatives in certain locations so find out if this is an option for you. 
  •  It is unlawful to rig or alter your weighing scale in a manner that you would pay less.

Some Polythene Recycling Companies in Nigeria

Start now by supplying waste nylon/plastic and other recyclable materials to local industries in Nigeria and make huge profit.
2/3 of waste recycling companies in Nigeria are located in Lagos state. You can make some research about the ones nearest to you.
Here I’ll list some recycling companies in Nigeria:

NAMPAK NIGERIA PLC
Tel: +234-014968470
Headquarters Address: 3/7, metal box road, ogba industrial estate Ikeja, Lagos.
Company Description:
Nampak Nigeria PLC is an Africa-based packaging manufacturer. In addition to packaging needs, the company is a manufacturer of tissue paper products. The company is also involved in collecting and recycling all types of packaging. It is a supplier of plastic bottles to dairy industry in United Kingdom, and it also manufactures folding cartons.

RICHARD NEWMAN INVESTMENT
It was registered in October 2010 for the purpose of recycling waste plastic materials. Richard Newman is a one-stop solution provider for all your plastic and nylon needs.
The company recycles waste polythene such as:
 Pure water sachets
Plastics
Bags
Packing nylon
P.P sacks and any other plastics.
Contacts:
Address: surulere house. 14, surulere industrial street, off Acme Road, Ogba Ikeja, Lagos.
Phone: +234-7084719014

OEBA ENTERPRISE LTD:
Headquartered in Lagos, Nigeria.
OEBA is a waste recycling firm. It is an international marketing and development company, marketing a large volume of recycled products from west Africa, trading significant volumes of third party recycled products and engage in an international investments and logistics.
OEBA has its offices in Lagos, with Port-Harcourt, Kaduna, Enugu and doula to follows

HOW TO TRADE WITH OEBA
Logon to their website; on
·         www.oebaltd.com
·         Click on “COMPLIANCE/QUALIFICATION
Then click on the relevant menu to get the necessary requirements.
LAWMA
Headquartered in Lagos and also operate in Lagos.
Tel: 018538601, 07063033310.

10 comments:

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  4. I have just kick started pure water satchet recycling company to start production on the 06-01-14. Can you give me companies that use it for slippers or water tank . Am located in Sapele Delta State
    Yommy

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  5. Hi @Yommy, I am interested in this business as well. I am based in Port Harcourt and It seems like there are no such companies down here. Can it really cost less than 3Million to kick start the business? I need you to give me details like from where you bought the machine and training to operate etc. and if you have started, what are your challenges like from collection to recycling and sales?
    enkysteraul@yahoo.com

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    1. Pls send me a private message about this inquiry

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