Lagos Assembly ratifies reports on proposed concession agreement, waste improvement programme

The Lagos State House of Assembly has ratified the report of its four-man ad-hoc committee set up to examine the proposed concession agreement between the Lagos State Government and Zoomlion Nigeria Limited, alongside the issuance of an Irrevocable Standing Payment Order (ISPO) linked to the state’s Waste Improvement Programme.

The committee, constituted under the leadership of Speaker Mudashiru Obasa, was mandated to critically review the public-private partnership arrangement designed to improve solid waste processing, disposal and management across the state.

Presenting the report during plenary, committee chairman Mr Gbolahan Yishawu said the House was requested to ratify the concession forwarded by Governor Babajide Sanwo-Olu and assess the proposed ISPO structure in relation to public interest and the state’s financial obligations.

According to the report, lawmakers carried out a detailed clause-by-clause review of the agreement and made wide-ranging recommendations before legislative approval.

Yishawu stated that the concession should only be ratified with strict legal safeguards, including provisions to address ambiguities and discrepancies and full reference to Lagos State laws throughout the agreement. He added that any future expansion in scope, facilities or waste coverage must receive prior notification and approval of the House.

The committee also recommended periodic environmental and social impact assessments with clear greenhouse gas reduction targets and timelines included in the concession framework.

On land allocation, lawmakers insisted that the size and location of any state land granted to the concessionaire must be explicitly stated, while broad land-use provisions should be redrafted.

They further stressed that waste collection and transportation must remain the responsibility of existing Private Sector Participation (PSP) operators, while Zoomlion’s role should focus on transferring waste from designated transfer stations to recovery facilities.

Other recommendations included stronger workers’ health and safety protections in line with international best practices, broader revenue accountability, and tighter monitoring and evaluation mechanisms to ensure adequate state oversight.

Regarding the financial structure, the committee raised concerns over the proposed ISPO arrangement and recommended that payment obligations be limited to seven years rather than creating automatic liabilities beyond the concession period.

It proposed a management fee benchmark of ₦32,000 per tonne, with structured advance payments and monthly obligations spread over five years, while urging the executive arm to explore alternative funding instruments to reduce pressure on general revenue.

The committee also noted that only 4,250 tonnes of waste per day — out of the estimated 13,000 tonnes generated daily — should be allocated under the concession to allow competition and participation by other investors.

Following the presentation, lawmakers commended the committee’s work, describing the intervention as timely amid growing public concern over waste management challenges in the state.

The motion for adoption was supported through a voice vote.

Speaker Obasa subsequently directed the Clerk of the House to formally communicate the development to Governor Sanwo-Olu.