Comprehensive Plastic Recycling Business Plan in Nigeria
Not many people have thought about plastic recycling as a business in Nigeria. However, this business has been in existence in the country for a while and it has proven to be very lucrative. What do you think about when you hear someone ask how to start plastic recycling business in Nigeria?
Most of the time, the first thought that drops in your mind is visiting different dumpsites to collect waste plastic. This is a very embarrassing idea for most people which is why they discard the idea as quickly as it comes. What you don’t know is that this business entails a lot more than doing this. You don’t even have to pick the plastic yourself. In this post, we will show you how to start this business in Nigeria and several other important pieces of information. We will also provide a sample plastic recycling business plan in Nigeria for your perusal. If you are ready then let’s get down to business.
Read More: Waste Recycling Business Plan in Nigeria
Advantages of plastic recycling business in Nigeria
In developed countries, recycling plastic is a serious and highly profitable business. This is because it is evident that plastic is dangerous to the environment if it is left unattended. Unlike other packaging materials, plastic does not decay when left at dumpsites.
If you can recycle plastic, then you will be raking in millions of Naira yearly. Are you wondering if there are any advantages to running a plastic recycling business in Nigeria? Let’s show you a few advantages of running this business:
- This business does not require a large capital outlay to begin. In fact, you can start without any capital.
- You can run this business without investing in a recycling machine. All you need to do is to work with existing stakeholders in the industry who have recycling factories.
- This business is highly beneficial to the environment as it makes our world far safer for human and plant existence.
- There is a lot of money to be made in this sector. Proper management added to hard and smart work will ensure you make enough to support your household.
- Outsourcing of plastic collection is very possible and you can also sell the waste collected to raise more profits.
- There is never a scarcity of waste plastic items such as water bottles, cellophane, product wrappers, and plastic bags.
The profitability of plastic recycling business in Nigeria
Sources reveal that you can sell a kilogram of polythene nylons for as much as N55. This figure should already be ringing a bell in your mind. Do you know how much you will make if you can gather 100 kilograms daily? That is about N5,500 daily, not many people make that amount daily in Nigeria today.
This figure shows that you can make about N140,000 in a month if you work every day except Sundays. You can earn a lot more if you can raise a higher amount of nylons daily. There are so many large companies willing to purchase plastic waste materials every day. simply find a way of getting as much waste plastic as you can and link up with these companies.
Stages of plastic recycling
The recycling process can be split into three different stages. These include:
The stages are unique and present unique opportunities to make profits. Deciding on a stage is highly dependent on the amount of capital you have at your disposal. Even though we have stated that you can start this business without capital, you will agree that capital is essential to every business.
Without any capital, you have to begin this business at the collection stage. This means you will be going around to collect the plastic materials for sale. With little capital, you will take it up a notch and indulge in sorting. However, with a large number of funds at your disposal, you can go into the processing of collected plastic. We will take a closer look at these stages in the next few paragraphs.
How to Start a plastic recycling business in Nigeria
When people hear of how lucrative a business is, they are ready to dive in immediately. This is not bad at all. However, where most people make a mistake is that they never seek knowledge before setting out. At the end of the day, they end up with losses and they begin to blame others or come up with baseless facts and excuses.
Before investing your time, effort, and funds into plastic recycling in Nigeria, you should learn the ropes. If you don’t, then you are likely heading for failure. Let’s take a look at the different stages of plastic recycling as practiced in Nigeria.
As one will expect, this stage requires a lot of effort or labor. Most of the time, it requires little or no capital. The input you need here is effort or manual labor. Many of us have seen those uneducated guys going around with wheelbarrows or sacks from one dump to another. This is all we see but we have no idea of what runs this business on the background.
Those dirty and haggard boys are the major stakeholders in this stage. While they may look dirty, they are not jobless. This stage is unattractive yet it is a source of income to anyone who invests time and effort into it.
You don’t have to start from this stage, especially if you have funds to set up your business. What you should have in mind is that these collectors sell their plastic to entrepreneurs running the sorting stage.
We have already discussed how much you can make from this stage earlier in this post. Depending on how much time you want to invest in this business, you can make a lot more than we projected.
Many people who get into the plastic recycling business in Nigeria begin at this stage. This is because it requires little funds while it needs very little human effort. The more capital you can amass, the better it is for you.
As a stakeholder in this stage, you will be purchasing your plastic from the collectors. After collection, you will sort the plastic and sell it to the processors. Of course, you will be selling at a higher price than you bought, this is where your profit lies.
We advise that you find your collectors to handle the first stage for you. This way, you will be spending far less than you should if you are buying daily. The importance of this stage is that the processors are not able to buy directly from the collectors. They only buy in very large quantities so the entrepreneur in the sorting stage acts as the middleman.
When you hear about this stage, it seems like you need so much capital. However, the capital requirement here is fluid. You only have to buy what you can afford and then resell. To make your earnings higher, you can purchase a baling and cutting machine.
This stage is where you need to have a lot of funds to start up. It is the final stage of the recycling business. Processing involves making the collected plastic into reusable products. Several industries need recycled plastic as raw materials. Examples include companies producing plastic tables and chairs, those producing plastic plates and cups, those producing plastic bags, etc.
To be sincere, this stage is capital and labor-intensive. This is because you need a lot of capital to purchase the machines needed for the processing process. At the same time, you need to hire workers that will operate the machines. You also need funds to purchase the waste plastic from sorters else there is nothing to process.
Writing a detailed feasibility study and business plan
It is important that you have both ready before you begin running this business. Many entrepreneurs confuse both terms. A feasibility study is far different from a business plan. As a matter of fact, you cannot write a detailed business plan without first conducting a thorough feasibility study.
A feasibility study provides you information on the sector, the challenges, and your competition amongst others. On the other hand, a business plan will help you find solutions to the challenges you will notice during the feasibility study. It acts as a map that helps you run your business efficiently. Asides this, a business plan can be submitted to investors and banks to raise capital for the business.
It is always better to hire the services of a professional to handle both projects. This way, you are assured of quality work at the end of the day. If you are seeking for professional writers to handle your feasibility study and business plan, you can contact us.
Get your Plastic Recycling Business Plan in Nigeria and feasibility study. pay N10,000 to:
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