By Erewunmi Peace

The Lagos State Government has announced a groundbreaking $400 million waste-to-energy (WTE) project designed to tackle the city’s worsening waste crisis while providing electricity to over 2 million residents.

Unveiled at the Lagos Investors’ Roundtable 2.0, the project will be located in Epe and is part of the state’s long-term strategy to turn environmental challenges into clean energy solutions.

“This initiative will not only ease the pressure on our overburdened landfills but also help in mitigating flooding and enhancing climate resilience,” said Commissioner for Environment and Water Resources, Tokunbo Wahab.

Turning Trash into Power

The WTE plant will process thousands of tons of municipal solid waste daily, converting it into electricity through advanced combustion and filtration technology. The Lagos Waste Management Authority (LAWMA) estimates that Lagos generates over 13,000 metric tons of waste per day, with landfills now operating at 80% capacity.

If completed, the Epe plant could generate enough power to serve 2 million people, making it one of the largest renewable energy projects in West Africa.

A Public-Private Partnership Model

The $400 million project will be privately funded and operated under a Design-Build-Finance-Operate (DBFO) model, aimed at attracting long-term investors.

Wahab said the plant is expected to deliver a 12% internal rate of return (IRR) over 20 years. The government will offer regulatory support and infrastructure incentives.

Environmental Impact and Early Warning Systems

Beyond energy, the project will introduce climate-responsive technology, including:

Real-time flood early-warning systems

Landfill conversion initiatives

Job creation in waste management and clean energy sectors