Polysmart Packaging secures US$5M equity investment to expand rPET production in Nigeria

NIGERIA – Nigeria-based recycling firm Polysmart Packaging Group has secured a US$5 million equity investment to expand its recycled plastic production capacity, as the country prepares to enforce stricter sustainability regulations in the packaging sector.

The investment was structured by Verdant Capital, which acted as exclusive financial adviser through its investment banking division, Verdant IMAP.

The funding was raised from an undisclosed Africa-focused private investor.

According to the companies, the capital will be used to strengthen Polysmart’s recycled polyethylene terephthalate (rPET) processing platform and increase the production of food-grade recycled PET pellets, a key material used by beverage producers and bottling companies.

Founded in 2013 and headquartered in Ogun State, Polysmart has built a reputation as one of Nigeria’s leading integrated producers of recycled plastic resins.

The company operates advanced recycling facilities that incorporate European processing technology to meet international food-grade standards and supply both domestic and export markets.

The latest investment comes as regulators in Nigeria intensify efforts to reduce plastic pollution and encourage circular packaging systems.

Proposed regulations under the country’s evolving extended producer responsibility (EPR) framework will require PET bottles to contain at least 25% recycled plastic by 2029, a policy expected to significantly boost demand for locally produced rPET.

Industry analysts say investments in recycling infrastructure will be critical to helping manufacturers meet these targets.

Packaging materials account for roughly 63% of plastic waste in Nigeria, much of which is either burned, dumped in landfills, or discharged into waterways, according to United Nations Environment Programme.

Globally, the need for recycling capacity is becoming more urgent. Data from the Organization for Economic Co-operation and Development shows that plastic production has more than doubled in the past two decades, while only about 9% of plastic waste is currently recycled.

This has prompted governments and consumer brands to accelerate commitments to recycled-content packaging.

In January, the company invested US$60 million to build what will become the country’s largest and most technologically advanced plastic recycling facility.

The first phase is scheduled for commissioning in March 2026, with full completion expected by July 2026.

The expansion reinforces Polysmart’s growing role in Nigeria’s transition toward a circular economy, strengthening local recycling capacity, reducing reliance on imported virgin plastics and creating large-scale employment across the waste management and manufacturing value chain.

The facility will be equipped with cutting-edge systems, including a Sorema Plastic Recycling System, TOMRA sorting technology, and two Erema Vacunite 2621T V-LeaN SSP units.

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