What do I need to start a recycling business in Nigeria?
To start a recycling business in Nigeria, You’ll need:
- Research & Planning: Conduct a feasibility study and market research to Identify the demand for the different recyclable categories- plastics, metals, e-waste, paper, etc., to help you decide on the materials you will collect.
- Financing: After research and planning are complete, you need startup capital to get the location(if you don’t already have one), buy equipment, buy recyclables, and cover other running costs. Without Scrapays, Startup capital ranges from 500k upwards, but with Scrapays, you can start your recycling business with as low as 100k.
- Location: Location is important because you will need space to store, sort, and package the materials after collection. Secure a location that’s easily accessible, with motorable roads, and close to the waste producers.
- Equipment & Infrastructure: You need the essential equipment, including scales to weigh when you buy and sell, bags and bands for packaging after sorting, etc., but when you start your recycling business with Scrapays, we provide you with what you need to start (the Scrapays IOT scale and the app).
These are the essentials you need to start, but they’re not exhaustive; for more information, please read our detailed guide on how to start a profitable recycling business in Nigeria.
Is starting a recycling business profitable?
Yes, starting a recycling business is profitable in Nigeria due to the following;
- Abundance of Recyclable Materials: With the rapidly growing population leading to increased waste generation and the growing recycling industry unable to match the waste production rate, there are abundant recyclable materials. Do a quick survey: Walk along a busy street for 10 minutes and count the recyclables you see littered around. There’s a high probability you’ll count more than 25.
- Growing Demand for Recyclables: Nigerians are becoming more environmentally conscious. This environmental consciousness, coupled with the cost of sourcing raw materials, is increasing the demand for recyclables by manufacturing companies, as they’ll prefer to recycle rather than produce from scratch.
- Low capital needed to start: Before Scrapays, you needed approximately 500k to start a recycling business, but with Scrapays, you can now start a recycling business with less than 100k. Scrapays also give you the necessary technology to run a profitable recycling business effectively.
- Limited Competition: The recycling business in Nigeria is still growing – so you’ll face limited competition, unlike starting a business like a school, restaurant, POS, etc, that’s well known with a lot of competition.
These factors confirm that the recycling business is very profitable in Nigeria. However, profitability still requires a well-planned and efficiently run business that collects in-demand recyclables, minimizes operation costs, and has ready buyers. The good news is that Scrapays technology handles these for you, so it’s never been easier to start a recycling business—start your recycling business with Scrapays today.
How Much Does it Cost To Start a Recycling Business In Nigeria?
The capital needed to start a recycling business in Nigeria varies due to several factors such as location, scale, and available non-monetary resources (e.g., startup cost will be less if you already have spare space compared to when you do not have space). Still, generally, the cost of starting a recycling business with Scrapays ranges from 80 – 100k (assuming you already have space to store the recyclables), while starting a recycling business without scrapays will cost anywhere between 300 – 500k.
How do I market my recycling business?
There are two channels to market your recycling business: offline & online.
Offline Marketing includes:
- Network and build Partnerships with Waste Producers, such as businesses, hotels, schools, churches, mosques, and manufacturing businesses, to collect their recyclable materials.
- Offer Referal Incentives: You can start a referral program for the businesses and customers you already serve to encourage them to bring more customers to you.
- Direct Marketing: You can print flyers & brochures and hand them from door to door to residences and businesses.
- Cleanup Drives: You Identify a very busy route and mobilize people to clean it up wearing branded shirts; while this is ongoing, you’ll also assign people to share flyers
- Community/Religious Meetings: Social and religious gatherings, such as landlord association meetings, churches, and mosques, are ample spots to promote your recycling business.
Online Channels
- Build a strong online presence: This will include claiming and optimizing your Google My Business profile, creating and optimizing your social media accounts, and posting regularly. If your budget allows, you can also get a website.
