Polysmart targets N60bn annual plastic waste spending

Polysmart Packaging Limited has announced plans to invest approximately N60 billion annually in purchasing recyclable waste as it continues to expand its operations. This move underscores the burgeoning economic potential within Nigeria's plastic recycling sector. Group Managing Director, Wasiu Balogun, revealed these details during a visit to the company's facility in Ogun State, led by a delegation from the Federal Government, in preparation for the inauguration of its expanded recycling plant.

Balogun estimated that the company will need around N5 billion each month to acquire recyclable materials from its expansive network of collection points, which would in turn benefit waste collectors, agents, and small businesses throughout the nation. "With this expansion, we will need to employ at least 2,000 agents," he stated.

The company presently operates 28 collection branches across Nigeria, including eight in Lagos, as well as additional branches in Kano, Katsina, Kaduna, Sokoto, Port Harcourt, and Ilorin. Balogun aims to establish 250 more collection branches within the next two years as part of a broader strategy to establish a collection network spanning all 774 local government areas in the country.

"Our goal is to have a branch in every local government in Nigeria," he emphasized. Balogun explained that the company's collection model enables households to exchange discarded plastic bottles and other recyclable materials with local agents who subsequently supply them to designated processing centers. According to Balogun, becoming an agent requires only a small space, roughly measuring two meters by two meters.

"To be an agent, all you need is a small space, two metres by two metres," he noted. The company's digital platform facilitates communication between households and nearby agents, as well as streamlining the collection and payment processes. "We discourage cash payments. As prices fluctuate, you can see them in real-time. Once they collect your products, the money moves from their account to yours," Balogun explained.

The platform has reportedly created more than 4,000 agent opportunities, helping to expand recycling activities beyond major urban centers. Balogun highlighted the drive behind the expansion as the company's commitment to prevent recyclable materials from becoming environmental hazards, converting them instead into valuable industrial raw materials.

"Our objective is straightforward: to safeguard the environment and ensure recyclable waste does not pollute the environment," he stated, adding that the company intends to recycle materials beyond plastics. He identified regulations on recycled content and Extended Producer Responsibility (EPR) as key factors driving investment, as requirements for manufacturers to incorporate recycled materials into packaging could sustain demand and spur further investment.

The Federal Ministry of Environment delegation commended the expansion, estimating that the project could generate at least 10,000 direct and indirect jobs. The ministry's Director of Pollution Control and Environmental Health, Omotunde Adeola, described the visit as an assessment of the facility's readiness for commissioning and a review of progress on the expansion.

She emphasized the significance of the investment in addressing plastic pollution, fostering local recycling capacity, and creating employment, particularly for young people. "We are very pleased with what is transpiring here. It represents a significant project, an expansion of what was previously in place, and it aids in fulfilling our ministry's mandate to combat plastic pollution, a major issue in the country," she remarked.

Adeola expressed optimism that the facility would demonstrate Nigeria's capability to process plastic waste locally, while supporting environmental compliance, local industrial development, and potential expansion into other West African markets.