A new food-grade plastic recycling plant commissioned by Polysmart Packaging Limited in Ogun State is projected to save Nigeria about $72 million annually in foreign exchange by reducing dependence on imported virgin polyethylene terephthalate (PET) resin.
The facility, located in Ileke town, has an annual production capacity of 60,000 tonnes of food-grade recycled PET (rPET), with machinery and working-capital financing of ₦40 billion provided by First City Monument Bank (FCMB).
The company said the investment would strengthen local packaging production by converting recovered post-consumer plastic waste into food-grade recycled materials for manufacturers, while reducing the country’s reliance on imported raw materials.
Nigeria consumes an estimated 600,000 tonnes of virgin PET annually, creating significant opportunities for locally produced recycled materials to replace some imported resin, Polysmart said.
At the commissioning ceremony on October 29, Minister of Environment, Balarabe Lawal, said the facility would enhance Nigeria’s capacity to recover and recycle plastic waste while supporting the country’s environmental sustainability objectives.
Ogun State Governor, Dapo Abiodun, described the investment as a demonstration of Nigerian enterprise and innovation, as well as the opportunities created by a supportive investment environment.
FCMB Managing Director and Chief Executive Officer, Yemisi Edun, said the bank’s support reflected its commitment to financing businesses that combine industrial development with environmental responsibility and economic opportunities.
She said financing sustainable businesses was essential to building a resilient economy and securing long-term shared prosperity, adding that the facility demonstrated how manufacturing and environmental responsibility could work together.
Edun said the bank provided ₦40 billion in financing for machinery and working capital to support Polysmart’s sustainable manufacturing operations and expansion.
Polysmart Group Managing Director, Wasiu Balogun, said the investment demonstrated the capacity of Nigerian businesses to develop world-class recycling infrastructure capable of serving local industries and creating opportunities across the waste-recovery value chain.
He said the facility, at full capacity, would process up to 100,000 tonnes of mixed plastics annually, equivalent to about 6.5 billion plastic bottles.
Balogun added that the operation was expected to generate about 1,000 direct jobs and more than 50,000 indirect jobs across plastic collection, aggregation, transportation and processing.
He acknowledged FCMB’s longstanding support, saying the bank’s financing and partnership had been instrumental in the company’s growth and expansion.
Founded in 2013, Polysmart Packaging Limited produces food-grade rPET resin and flakes from post-consumer plastic waste. The company describes the newly commissioned facility as Africa’s largest plastic recycling plant.