Nigerian energy company Oando Plc has announced plans to construct a polyethylene terephthalate (PET) recycling plant, as part of its wider push into clean energy and sustainability.
According to a company report seen by Bavijas Energy, land for the project has already been acquired, with construction expected to begin soon.
The facility will have the capacity to process 2,750 tonnes of plastic waste each month.
While the exact location has not been confirmed, indications suggest it may be sited in Lagos.
Tackling Nigeria’s plastic waste crisis
Nigeria is ranked as the world’s second-largest plastic polluter, generating about 3.5 million tonnes of plastic waste annually.
PET bottles are among the most common pollutants, with most ending up in landfills, waterways and open dumps.
Globally, Nigeria contributes around 7% of plastic pollution, behind India, which produces 9.3 million tonnes a year—about 20% of the global total. Studies show that less than 12% of Nigeria’s plastic waste is recycled.
The PET project will be developed under Oando Clean Energy Limited (Ocel), the company’s renewable energy subsidiary, in partnership with government agencies and private stakeholders.
The plant is expected to convert discarded plastic bottles into reusable materials for local industries, including textiles and packaging, reducing reliance on virgin plastics.
Oando’s strategic shift to clean energy
The recycling initiative is part of Oando’s broader pivot towards renewable energy. Recent projects include:
- Project Solis: a 1,200MW-per-year solar PV module assembly plant.
- Geothermal pilot: a 6MW project currently under development.
- Wind feasibility study: launched at Cop30 to assess state-level wind potential.
- Project LightSpeed: an electric mass transport system in Lagos, aiming to deliver 12,000 electric vehicles and 5,000 charging units over seven years.
Oando has also expanded into mining and infrastructure, signing a production sharing contract with Kebbi State for joint development of gold and lithium, following positive assay results.
The company says it is targeting an investment decision on at least one mineral prospect by the fourth quarter of 2025.
Oando’s fuel trading division under pressure
Despite its clean energy ambitions, Oando’s traditional fuel trading business has struggled. The company’s nine-month report shows it did not trade a single petrol cargo in 2025, compared with eight in the same period last year.
Oando, whose production soared by over 50% in the first nine months of 2025, said the pause was not only deliberate but also aimed at “rebalancing its portfolio towards higher-margin crude and gas trading opportunities.” This has led to the suspension of its refined product trading guidance pending market recovery.
The downturn comes amid increased competition from the Dangote refinery, which has helped cut Nigeria’s fuel imports by nearly half, according to the downstream regulator NMDPRA.
However, Oando’s crude trading division has recorded growth, with 21 cargos (19.8 million barrels) traded in the first nine months of 2025, up from 15 cargos (16.7 million barrels) in the same period last year. The company attributed the rise to stronger offtake execution and stable supply chain performance.