Nigeria's booming consumption of PET bottles creates a significant environmental challenge but also a promising business opportunity. This study explores the market potential and feasibility of establishing a PET bottle recycling business in Nigeria.

Industry Overview
Polyethylene terephthalate (PET) is a widely used plastic for food and beverage packaging like bottles
Nigeria generates over 1 million tons of PET bottle waste annually, with an abysmal recycling rate under 10%
Increasing consumer awareness and regulations driving need for sustainable waste management solutions
Recycled PET (rPET) finds applications in new bottles, fibers, sheets and is a growing global market.

Market Analysis
PET bottle waste generation projected to grow at over 8% annually driven by population and consumption trends
Key sources include households, informal sectors, bottle manufacturers, and beverage companies
Currently a fragmented informal sector handles most PET collection/aggregation with limited recycling
Huge opportunity exists to establish integrated recycling to produce high-quality rPET for domestic and export markets

Proposed Project
State-of-the-art recycling plant with capacity to process 20,000 metric tons of PET bottles per annum
Located in Lagos, Nigeria with proximity to major waste sources and access to utilities/infrastructure
Deploy advanced sorting, washing/decontamination, grinding and pelletizing processes
Stringent quality control to produce food-grade and industrial-grade rPET pellets and flakes
Establish efficient supply chain for PET waste collection from aggregators and formal sources
Financial Viability
The estimated total capital investment covers expenses for plant machinery, utilities, and site development.
Revenue projections forecast significant growth primarily through rPET.
The payback period is anticipated to be under 5 years, and the Internal Rate of Return (IRR) is estimated to be over 20% based on base-case assumptions.
There is potential for further capacity expansion and diversification of the product range, including fibers, sheets, and more

This study concludes that a commercial-scale PET bottle recycling project is economically viable and environmentally sustainable based on the growing waste volumes, market demand for rPET, and positive financial indicators. However, securing feedstock supply, maintaining quality standards, achieving operational efficiency, and developing reliable product markets are critical success factors.