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How to start a waste management business in Nigeria

by Alara Charis

June 22, 2021 1

The waste management business in Nigeria is one area that’s not yet oversaturated. It is one of the dirtiest business areas most people do not intend to explore. However, it is indeed a goldmine that can fetch you a lot of income if you’re bold enough to take a step in that direction.

Are you an SME in Nigeria looking to explore this business sector? If yes, let’s take a look at how to get started in this money-making business sector.

Choose a niche

The first step towards starting a waste management business as an SME in Africa is to choose a niche. Carry out a study to properly understand the different niches in this business and which one works best for you. While choosing a niche, care must be taken to understand the in and outs of the particular niche and how much it will cost you to start. While focusing on one niche makes things easier, you can choose to combine two or more niches based on your budget.

Carry out research

No business can thrive in the absence of adequate research. Carrying out necessary research helps to put things in perspective. Also, it prepares you for whatever issues might arise in the course of your business. Have a clear understanding of what the market is like out there by studying your competitors. If the niche you’re venturing into is oversaturated, find out how you can provide your services in a way that makes you stand out from your competitors. Another way to solve the challenge of oversaturation is by venturing into a less explored niche where your services will make some difference.

Study the service areas of your competitors, their strategies, prices, e.t.c. Also, find someone who has been in the business long enough to show you the ropes and get you started. 

Create a business plan

As SMEs in Africa, the importance of a business plan cannot be overemphasized. A business plan for your waste management business will help you spell out your objectives, goals, and how you intend to carry them out. Here are some things to note in your business plan:

• What exactly is your business about?
• Who is your target audience?
• What area(s) will you specialize in?
• What is your unique selling point?
• Your pricing model
• What does your startup cost?
• What strategies will you adopt?
• How will you fund the business? E.t.c.

Source Funding

Once you know the cost of running your waste management business, the next step is to source funding. Several funding options are available for businesses such as bank loans, self-funding, e.t.c. Truth is, accessing bank loans for SMEs in Nigeria can be a daunting task. This hindrance is mostly due to a lack of collateral or the necessary documents.

However, there are other funding options to explore such as angel investors, family and friends, international grants, e.t.c. In most cases, all you need to do is provide a well structured and detailed business plan and other necessary documents about your business. If you have more than enough capital to self-fund your business, it’s also a great route to explore.

Register your business

For SMEs in Nigeria, the Corporate Affairs Commission (CAC) is the recognized body for new business registration in the country. Registering your business saves you from future challenges and harassments that might arise once you kick off your business. With business registration, you have to decide on the structure of your business. Do you want to run a Limited Liability Company or a Sole-proprietorship? Another way to register your business is as a social enterprise (NGO)

For starters, you can register as a business name owner. As time goes on, you can upgrade to a Limited Liability Company. Registering businesses for SMEs in Nigeria is quite an easy task that can also be done online. If the process of registration isn’t something you want to stress over, you can always hire a lawyer to handle your business registration.

Get Necessary Permits And Licenses

Waste management business deals directly with the environment. As a result, it requires certain permits and licences. To run your business smoothly, you need to get all the required permits and licences. In Lagos State, for instance, the body charged with the responsibility of carrying this out is the Lagos Waste Management Authority (LAWMA). After getting your license, your business will be listed on the LAWMA website including the category it falls into and certificate number.

Other bodies exist aside from LAWMA, all you have to do is research the necessary ones and get registered. Carrying out your registration will save you from harassment from the law enforcement agents.

Purchase Your Equipment 

Having carried out all the aforementioned, it’s time to kickstart your business. However, this can’t happen without the necessary machines/equipment. If you can’t afford to purchase one, equipment leasing is an option to explore. Another way to go about it is by partnering with a recycling company you can work with. The machines you would need depends on what niche of waste management you are into.

Some of the equipment needed for a waste management business are washing gears, bins, sorting equipment, scales, e.t.c.

Get A Dumping Site

After gathering waste, you need a dumping site to dispose of the waste. Find out the sewage disposal area others in the business make use of. You can negotiate with operators on the disposal site to agree on an affordable price.

Expand Your Business

Once you find your bearing in the waste management business, you might want to expand across other locations. The waste collection might not be daily, so you can hire waste collection trucks for a start. This helps you cut down on expenses while starting.

Conclusion 

Going all out with your marketing strategy will help you thrive as an SME in Nigeria in the waste collection business. It is advisable to target both the elites and low-income earners as this opens opportunities for you on both ends. As with every other business, the waste business requires dedication and hard work to successfully thrive. All you have to do is put in the work and watch your investments yield the desired results.