The urgency for sustainable processes is no longer breaking news. As a result, global demand for aluminium surges, driven by industrialisation, urbanisation, and EV-driven mobility.
In Nigeria, Terra Aqua, one of the country’s largest recyclers, is advancing this transition with strategic support from Manufacturing Africa (MA), a UK government-funded initiative under the Foreign, Commonwealth & Development Office (FCDO).
About Manufacturing Africa
Manufacturing Africa aims to catalyse inclusive growth by mobilising £1.2 billion in FDI and creating 90,000 jobs across Africa (2019-2026). By connecting investors and strengthening ESG and operational practices, MA helps local manufacturers become globally competitive while delivering sustainable development outcomes.
Nigeria’s aluminium opportunity
The aluminium market is expanding, with China consuming 57% of global aluminium. Sustainability is reshaping supply: recycled aluminium provides 33% of total output and requires only 5% of the energy used for primary production, making circularity a strategic lever for cost, carbon and competitiveness.
Inside Terra Aqua: Nigeria’s aluminium recycling leader
Based in Ogun State, Terra Aqua processes about 8,800 tonnes of aluminium scrap monthly, which is Nigeria’s largest installed capacity. The company sources scrap locally, creating income for collectors and aggregators, cutting landfill waste and shortening transport. Inputs like caustic soda are also locally procured, reinforcing domestic value chains.
Terra Aqua produces secondary aluminium ingots for export, primarily to Asian metals traders serving major manufacturers. Its workforce includes 100 part-time employees, with 30% women, supporting inclusive industrial jobs.
Image for representational purpose
The challenge: Financing growth through sustainability
To unlock growth, Terra Aqua sought to refinance high-cost debt and raise $7.5 million in new debt. Interested investors required the company to meet robust ESG standards to proceed.
How Manufacturing Africa supported Terra Aqua
- ESG Framework and Implementation Roadmap
MA designed a company-specific ESG framework and roadmap, identifying risks, setting targets and aligning reporting to global standards. The work built stakeholder trust and strengthened Terra Aqua’s investment readiness for long-term partners like TLG Capital.
- Environmental and Social Strategy
MA’s strategy guided improvements in waste management, pollution control, and emissions reduction, and formalised an ESMS. It recommended stronger OHS practices, adherence to labour standards, and a Stakeholder Engagement Plan with a grievance mechanism aligning operations with international norms.
- Supply Chain Sourcing Strategy
MA mapped Terra Aqua’s sourcing-to-export chain to identify growth levers, resilience gaps, and emissions reduction opportunities. It assessed readiness for supply shocks and regulatory shifts, and recommended digitising inventory and tracking for efficiency and scale.
Impact: A sustainable investment success
Terra Aqua raised $7.5 million in debt from TLG Capital. TLG is also greening the company’s power and has applied for a $5 million grant to accelerate the transition. The investment sits within a strategic partnership between TLG Capital and Manufacturing Africa, formalised at the UK High Commission, Lagos, on April 29, 2025.
A step toward Africa’s sustainable industrial future
Terra Aqua’s journey shows how ESG excellence converts into capital access, operational resilience, and export growth. With MA’s support, Nigeria’s recyclers are poised to lead a low-carbon, circular aluminium economy, proving sustainability and profitability can advance together.
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