The Lagos State government has obtained a €120 million facility from the Dutch Development Bank (FMO) to support the development of a waste-to-energy project. It is noted that the project is aimed at improving waste management and electricity generation in the state.
The disclosure was made by Kazeem Adegboyega, Managing Director of Ibile Microfinance Bank, who represented Governor Babajide Sanwo-Olu at the LAPO Microfinance Bank Sustainable Finance Conference held on October 31, 2025, in Lagos.
Adegboyega said the state is in advanced discussions for a $400 million waste-to-energy plant. The facility, to be located in Epe, will process about 3,000 tonnes of waste daily. It is expected to generate power for surrounding communities and reduce pressure on existing landfills.
He described the initiative as part of Lagos' long-term plan to shift toward renewable energy. The project, backed by FMO, will be one of the largest waste-to-energy ventures undertaken by any subnational government in Nigeria.
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According to him, Lagos has been pursuing a broader climate resilience strategy. The state recently established the Office of Climate Change and Circular Economy to promote sustainable consumption and develop frameworks that encourage recycling and waste conversion.
Lagos has also implemented a Climate Action Plan (2020-2025) that outlines a roadmap to cut greenhouse gas emissions and achieve net zero by 2050. A separate Climate Adaptation and Resilience Plan is in place to attract green investments and strengthen infrastructure against flooding and other climate risks.
Adegboyega noted that Lagos has planted more than seven million trees since 2008 to curb carbon emissions. He added that the state provides N1 billion annually to each local government and local council development area (LCDA). The fund supports at least five sustainability-focused projects in each council, reaching more than 1,000 communities.
These projects include renewable energy solutions for small businesses, free health insurance for low-income households, and tree-planting initiatives.
Adegboyega, who also oversees Ibile Microfinance Bank, said the bank has been instrumental in financing Lagos' green economy agenda. Since its establishment in 2017, the state-owned bank has disbursed over N50 million in loans to support recycling, renewable energy, and sustainable agriculture.