At the Lagos Investors Summit today, the state government announced a bold and transformative step towards a cleaner, more sustainable future: the development of a $400 million Waste-to-Energy Plant to be sited in Epe.
This landmark project, unveiled under the leadership of Governor Babajide Sanwo-Olu, directly addresses Lagos’ critical challenges of waste management and energy security. With 80% of landfill capacity in the state nearing exhaustion, the new plant offers a timely solution to the growing waste crisis threatening the megacity’s environmental health and urban resilience.
The facility will convert municipal solid waste — which currently overwhelms Lagos’ landfills and contributes to flooding during the rainy season — into clean energy. Once operational, the plant is expected to generate enough electricity to power up to 2 million homes and businesses across the state.
Beyond energy generation, the plant will reduce landfill dependence, help prevent waste-related blockages in drainage systems, and significantly cut greenhouse gas emissions. Financially, the project is projected to deliver a 12% internal rate of return over 20 years, through a combination of electricity sales and the introduction of tipping fees for waste disposal.
The Waste-to-Energy initiative forms part of a broader climate resilience strategy, which also includes the planned implementation of an Early Warning System for extreme weather events. Together, these efforts underscore the Sanwo-Olu administration’s commitment to innovative, sustainable solutions that address both immediate environmental threats and long-term climate adaptation needs.
The government has called on both public and private sector partners to collaborate in realizing this ambitious vision, aimed at positioning Lagos as a model for urban sustainability in Africa.
