Reclaiming value: The repair and refurbish pillars of Nigeria’s circular economy

In an old fable, a shattered pot was painstakingly restored by a master, revealing beauty in every repaired shard. Today, Nigeria stands on a similar brink—a world of repair and refurbishment ready to transform waste into wealth and spark a revolution of circular prosperity.

As the world shifts to a regenerative circular economy, repair and refurbishment are emerging as powerful tools for sustainability, resource efficiency, and job creation. Globally, the circular economy is projected to generate up to $4.5 trillion in economic benefits by 2030 while reducing resource consumption by 15–20 percent.

Yet, one of its most overlooked components—repair and refurbishment—remains underexploited, particularly in Nigeria, where these activities have long existed on an informal basis. This piece examines the global context of repair and refurbishment, highlights Nigeria’s unique opportunities and challenges in this sector, and provides recommendations to harness its potential in key sectors like electronics, textiles, and automotive.

Global perspective on repair and refurbishment
Globally, repair and refurbishment represent a crucial aspect of the circular economy. Recent studies suggest that if repair and refurbishment were scaled up, they could create millions of new jobs and significantly reduce the need for virgin raw materials. For example:

Job creation: Experts estimate that repair and refurbishment activities could add up to 3 million new jobs globally by 2030. These jobs not only range from skilled technicians to digital platform managers but also extend into ancillary services like logistics, quality control, and parts supply.

Economic boost: Repair services save businesses an estimated 10–15 percent on raw material costs by extending the life of products. In addition, the refurbishment sector is projected to reach a market value of over $2 billion globally, growing at an annual rate of 12 percent.

Environmental impact: By keeping products in circulation longer, repair and refurbishment can reduce overall waste and resource extraction. Studies indicate that effective repair strategies can cut greenhouse gas emissions by up to 20 percent compared to conventional manufacturing processes.

Despite these impressive figures, repair and refurbishment have traditionally been part of informal economies around the world. In many regions, including North America and Europe, regulatory frameworks are now evolving to formalise and incentivise these activities, integrating them into broader sustainability policies.

Read also: Building Nigeria’s circular economy: A framework for sustainable growth

Nigeria’s informal repair economy: A tapped yet untapped resource

Historical context

For decades, Nigerians have relied on informal repair and refurbishment networks. From roadside mechanics who fix automobiles to local tailors who mend and upcycle textiles, these activities have sustained communities and provided livelihoods without formal recognition or support. However, this sector has been poorly tapped by national policies, despite its potential to drive substantial economic and environmental benefits.

Current scenario

Informal dominance: In urban centres such as Lagos, thousands of small-scale repair shops operate daily, fixing everything from household electronics to vehicles. Despite their ubiquity, these operations are often fragmented and lack standardised practices, hindering their contribution to the national economy.

Missed economic opportunities: While informal repair work has sustained millions of Nigerians, formalising this sector could unlock enormous potential. Estimates indicate that if repair and refurbishment were integrated into the formal economy, Nigeria could see significant cost savings in manufacturing and a boost in local production competitiveness.

Key sectors in focus

Electronics

Electronics have become an integral part of modern life, yet their disposal has led to a growing e-waste crisis. Nigeria, like many other countries, struggles with the management of electronic waste, with up to 70 percent of discarded gadgets ending up in landfills. However, the repair and refurbishment of electronics could offer an effective solution:

Repair rates and savings: Studies show that repairing electronics instead of replacing them can extend their lifespan by 30–50 percent. For Nigerian consumers, this means saving money while reducing environmental impact.

Job creation: Formalising the electronics repair industry could create thousands of skilled jobs. Initiatives that train technicians in the latest repair technologies could boost employment and help meet the growing demand for affordable, sustainable electronics.

Innovative models: Startups and digital platforms are emerging in Nigeria that connect consumers with certified repair professionals. These models not only improve service quality but also help standardise practices in the sector.

Textiles

The textile sector in Nigeria is both a major employer and a significant contributor to waste:

Upcycling and refurbishment: Traditional practices of mending and upcycling clothes have been part of Nigeria’s cultural heritage. However, with the influx of fast fashion, much textile waste now ends up in landfills. By reviving and modernising repair techniques, the textile industry can reduce waste and promote sustainable consumption.

Economic potential: The global refurbished textile market is growing at an estimated rate of 12 percent per annum. In Nigeria, where a large informal economy already exists around second-hand clothing, formalising and scaling these activities could attract investments and boost local entrepreneurship.

Sustainable practices: Encouraging sustainable practices in textile repair could involve government incentives for businesses that incorporate recycled fabrics or offer repair services. Educational campaigns can also raise awareness about the environmental benefits of extending garment lifecycles.

Automotive

Nigeria’s automotive repair industry is a critical component of the informal economy, with countless mechanics and repair shops servicing vehicles daily:

High repair demand: Informal estimates suggest that over 70 percent of vehicles in Nigeria are maintained by small, independent repair shops. Formalising these operations can lead to better quality services and improved safety standards.

Economic impact: The automotive repair sector is estimated to save the country up to 15 percent in raw material costs if vehicles are maintained and refurbished rather than replaced. This saving can translate into higher productivity and competitiveness for Nigerian businesses.

Technology integration: By adopting modern diagnostic and repair technologies, Nigerian mechanics can enhance efficiency. Digital platforms that offer real-time service tracking and quality assurance can bridge the gap between informal services and formal industrial practices.

Innovations and challenges

Innovations

Recent initiatives indicate a growing awareness and gradual shift toward a more formalised repair and refurbishment sector in Nigeria:

Digital platforms: Mobile apps and online marketplaces now connect consumers with repair services. These platforms standardise pricing, quality, and turnaround times, increasing consumer confidence.

Training programmes: Government and private sector partnerships are emerging to provide vocational training in repair and refurbishment. These programmes aim to enhance technical skills and foster entrepreneurship.

Public-private partnerships: In cities like Lagos and Abuja, pilot projects are underway to integrate repair services into waste management systems. For example, some programmes are focused on collecting and refurbishing electronic waste, turning potential environmental hazards into profitable ventures.

Challenges

Despite these positive trends, significant challenges remain:

Infrastructure deficits: Many repair facilities, especially in rural areas, lack the modern equipment and standardised processes needed for efficient operations.

Regulatory hurdles: The absence of a comprehensive regulatory framework, including Extended Producer Responsibility (EPR) and quality standards for repair services, stifles growth and limits investments.

Awareness and perception: A large portion of the population still views repair as a temporary or low-value activity. Changing these perceptions requires sustained public education and incentives.

Informal nature: The predominance of informal repair networks means that data on the sector is often unreliable, making it difficult for policymakers to design effective interventions.

Policy recommendations and future opportunities

To tap into the hidden potential of Nigeria’s repair and refurbishment sector, a multi-pronged policy and strategic approach is essential:

Formalisation and standardisation

Develop regulatory frameworks: The government should implement policies that formally recognise repair and refurbishment as vital sectors. Just like the European Directive on the repair of goods, which aims at encouraging consumers to use their goods for longer, thus preventing premature disposal of repairable goods.

The directive on common rules promoting the repair of goods was adopted on 13th June 2024 and entered into force on the 30th of July 2024. The member states are expected to transpose it into national rules and apply it from the 31st of July 2026. It establishes a number of measures to promote repair.

The government should introduce quality standards, licensing requirements, and Extended Producer Responsibility (EPR) programs to hold manufacturers accountable for product lifecycle management.

Incentives for formalisation: Offer tax breaks or low-interest loans to repair businesses that transition from informal to formal operations. A proposed 10 percent tax break for registered repair firms could catalyse investment in the sector.

Skill development and capacity building

Vocational training: Establish government-backed training centres focused on repair and refurbishment skills. These centres can partner with technical institutes and private companies to offer certification programs in electronics, textiles, and automotive repair.

Entrepreneurship programmes: Launch initiatives that provide mentorship and seed funding for startups in the repair sector. By nurturing small businesses, Nigeria can create a robust network of local entrepreneurs driving sustainable innovation.

Technological integration

Digital marketplaces: Invest in digital platforms that streamline repair services, ensuring transparency, standard pricing, and customer satisfaction. These platforms can integrate customer feedback, quality assurance, and logistics management.

Innovation hubs: Create innovation hubs where repair and refurbishment technologies can be developed and tested. Such hubs can focus on using advanced diagnostics, artificial intelligence for repair predictions, and modern recycling technologies.

Public awareness and behavioural change

Awareness campaigns: Launch nationwide campaigns to educate consumers on the benefits of repair and refurbishment. Highlight success stories and the environmental impact of extending product life cycles.

Cultural revival: Promote traditional repair practices that have long been part of Nigerian culture. By blending these practices with modern technology, the sector can benefit from both heritage and innovation.

Leveraging regional successes

Learn from other African economies: Countries like South Africa and Kenya are already formalising repair sectors with noticeable success. Nigeria can collaborate with these economies to adopt best practices, share technological advancements, and establish cross-border supply chains for refurbished goods.

Regional cooperation: Engage in regional partnerships to standardise repair practices across Africa. This can include harmonised quality standards, shared training programmes, and joint investment in repair infrastructure.

Conclusion

Repair and refurbishment are not just remedial activities; they are transformative pillars that can drive Nigeria—and indeed, the entire African continent—toward a truly circular economy. Global projections show that a robust repair and refurbishment sector can contribute billions in cost savings, create millions of jobs, and significantly reduce environmental impact. In Nigeria, the informal repair economy has sustained communities for decades, yet it remains underutilised in formal economic planning.

By focusing on key sectors such as electronics, textiles, and automotive, Nigeria can harness the hidden potential of repair and refurbishment. With strategic policy shifts, targeted investments in technology and training, and a commitment to raising public awareness, the repair sector can emerge as a critical engine of sustainable development in 2025 and beyond.

The recommendations outlined above—formalising the sector, building capacity, integrating technology, and leveraging regional success—offer a roadmap to tap into this hidden value. As Nigeria embarks on this transition, the repair and refurbishment sector can not only reduce waste and conserve resources but also drive inclusive economic growth and create a legacy of sustainability for future generations.

The time to act is now. Formalising and investing in repair and refurbishment will transform Nigeria’s waste challenges into economic opportunities, ultimately paving the way for a greener, more resilient, and prosperous future.

Jimmy Arikawe is a circular economy expert with years of experience in Nigeria’s recycling sector, specialising in technology-driven solutions for sustainable resource management. He is the CTO of Circula, a clean-tech company dedicated to fostering a circular economy across Africa.