Waste Managers in Nigeria Urge Government to Adopt Cost-Reflective Tariffs Amid Rising
The Association of Waste Managers of Nigeria (AWAMN) has called on the Nigerian government to introduce a cost-reflective tariff structure for waste management services to address rising operational costs and the growing revenue gap in the industry. AWAMN President, Mr. Olugbenga Adebola, emphasized that the current tariff system is unsustainable, especially as other sectors like telecommunications and power adjust their prices according to inflation and exchange rates, while waste management has not seen similar adjustments.
Adebola highlighted the challenges facing the sector, including significant increases in diesel prices, a vital component for waste collection. The last tariff revision in low-income areas occurred in 2022 when diesel cost N600 per litre, but since then, prices have surged to N1,700 and then dropped slightly to N1,300. Despite these fluctuations, waste service tariffs have not been adjusted, leaving waste management businesses struggling to recover costs and maintain operations.
The AWAMN president further pointed out that the financial viability of waste management companies in Nigeria is jeopardized without a tariff system that ensures proper cost recovery. He warned that without such reforms, many businesses in the sector would face collapse. He also drew attention to the difficulties operators face, citing the significant gap between the actual cost of waste collection and what operators earn, noting that a waste truck trip in Lagos costs between N167,000 and N180,000, but operators often make as little as N70,000.
In response to these challenges, Adebola revealed that AWAMN has secured a €50 million Memorandum of Understanding (MoU) for infrastructure upgrades, including truck acquisitions and recycling systems. However, he stressed that these investments would not be sustainable without a tariff structure that accurately reflects the economic realities of the country. He concluded by urging the government to prioritize the implementation of a fair and sustainable tariff system for the waste management sector.
Source: Naira metrics