Energy

Lagos unveils $400 million waste-to-energy plant to power two million homes

The Lagos State Government has announced a $400 million plan for a new Waste-to-Energy plant in Epe, aiming to tackle waste problems and deliver clean electricity to millions.

Lagos State is taking a big step towards cleaner energy and better waste management. On Wednesday, the government revealed plans to build a Waste-to-Energy (WTE) plant in Epe. This project is expected to supply electricity to up to two million residents and help reduce the risk of flooding caused by blocked drainage channels.

Recall on the 1st of April, 2025, Daily Tech reported that the Lagos state government stated that the new plant in Epe, developed in partnership with Dutch company Harvest Waste, will process 2,500 tonnes of waste daily and produce 60–80 megawatts of electricity which has also secured €100 million in funding.


Commissioner for the Environment and Water Resources, Mr. Tokunbo Wahab, shared the news at the Lagos Investors Summit 2.0. He explained that the plant will be set up using a private sector-led model, meaning private companies will design, build, finance, and operate the plant, while the government keeps its involvement limited.

The WTE plant will convert municipal solid waste into electricity. This means less rubbish will end up in landfills, and more homes will have access to reliable power. The project is expected to deliver a 12% internal rate of return over 20 years, supported by electricity tariffs and a tipping fee for waste disposal.

Lagos faces serious waste challenges. About 80% of landfill space is almost full, only 63% of households have formal waste collection, and 67% of people dump waste illegally. These problems often lead to flooding, especially during heavy rain.

Mr. Wahab said the new plant is part of Lagos’ climate action goals and supports Nigeria’s National Energy Transition Plan. He also announced an Early Warning System for Extreme Weather Events to help protect lives and property. By 2050, more than 65% of Lagos residents could be at risk of severe flooding if nothing is done.

Mr. Wahab said, “The plant is an innovative project designed to convert waste to energy by addressing both efficient waste management and energy generation for Lagos State.” He added that the project will help reduce the amount of waste going to landfills and provide clean power to densely populated areas.

Construction of the Epe Waste-to-Energy plant is a major move for Lagos. If successful, it could serve as a model for other Nigerian cities facing similar challenges. The project promises not just cleaner streets, but also more stable electricity and better protection from floods.

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Solomon Bitrus
Senior reporter

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