FCMB backs N40bn plastic recycling plant in Ogun

•Facility to create 50,000 indirect jobs

Polysmart Packaging Limited has commissioned a N40 billion plastic recycling plant in Ileke, Ogun State, with the capacity to produce 60,000 tonnes of food-grade recycled plastic materials annually.

The facility, financed by First City Monument Bank (FCMB) through machinery and working-capital support, will convert used plastic bottles and other recovered plastic waste into recycled materials for use by manufacturers.

The investment is expected to boost local production of packaging materials, reduce plastic waste and cut Nigeria’s dependence on imported raw materials.

Described by Polysmart as Africa’s largest plastic recycling plant, the facility was commissioned on October 29, with the Minister of Environment, Balarabe Lawal, saying it would strengthen Nigeria’s ability to recover and recycle plastic waste while advancing the country’s environmental sustainability goals.

Ogun State Governor, Dapo Abiodun, described the investment as evidence of the capacity of Nigerian businesses to drive innovation and industrial development in an environment that supports investment.

FCMB Managing Director and Chief Executive Officer, Yemisi Edun, said the bank’s support reflected its commitment to financing businesses that promote industrial growth while protecting the environment and creating economic opportunities.

“At FCMB, we believe that financing sustainable businesses is essential to building a resilient economy and securing long-term shared prosperity. By converting recovered plastic into new products, this plant shows how manufacturing and environmental responsibility can work together,” Edun said.

“Polysmart embodies our commitment to sustainable manufacturing practices, environmental sustainability and wealth creation, reflected in our N40 billion in funding for machinery and working capital.”

Polysmart Group Managing Director, Wasiu Balogun, said the investment showed that Nigerian businesses could develop world-class recycling facilities to serve local industries and create jobs.

“This is climate action made in Nigeria. The investment demonstrates the capacity of Nigerian businesses to develop world-class recycling infrastructure,” Balogun said.

He explained that at full capacity, the facility would process up to 100,000 tonnes of mixed plastic waste annually, equivalent to about 6.5 billion bottles.

According to him, the operation is expected to create about 1,000 direct jobs and more than 50,000 indirect jobs across plastic collection, sorting, transportation and processing.

Balogun also acknowledged FCMB’s longstanding support, saying the bank’s financing and partnership had played an important role in the company’s growth and expansion.

Polysmart estimates that Nigeria consumes about 600,000 tonnes of virgin polyethylene terephthalate (PET) annually. The new facility is expected to help replace some of the imported raw materials with locally produced recycled alternatives.

The company projects that the plant could save Nigeria about $72 million annually in foreign exchange through reduced imports of virgin plastic materials.

Founded in 2013, Polysmart Packaging Limited specialises in producing food-grade recycled PET resin and flakes from used plastic waste.