$400M Waste-to-Energy plant planned for Epe – LASG

July 11, 2025

By Ayinde Adeleke

The Lagos State Government has unveiled plans to develop a $400 million Waste-to-Energy plant in Epe, aimed at tackling the state’s mounting waste management challenges while generating clean electricity for approximately two million residents.

This initiative is expected to mitigate climate-related risks, including flooding.

Commissioner for Environment and Water Resources, Mr. Tokunbo Wahab, revealed the project at the Lagos Investors Summit 2.0, emphasizing the state’s commitment to reducing waste in landfills through innovative strategies like Waste-to-Energy plants.

“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.”

The plant, to be delivered through a private sector-led model with limited government involvement, is projected to yield a 12% Internal Rate of Return over 20 years, supported by electricity tariffs and a tipping fee.

According to Wahab, “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.”

Situated in Epe, the facility will convert municipal solid waste into electricity, addressing both waste management and energy generation needs. Mr. Wahab described the project as critical infrastructure aligned with Lagos State’s climate action goals and the National Energy.

“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.”

The proposed Waste-to-Energy plant is expected to play a significant role in addressing these challenges.