Nigeria Women Investors Back Cooking Oil Start-up With Up to US$1 Million
Nigeria · BUSINESS
Key Facts
- —The country Nigeria is Africa’s most populous country, with about 238 million people. Its economy, about US$291 billion in 2025, is slightly smaller than Finland’s, according to the World Bank.
- —Why it matters Nigerians cook with large amounts of oil, and most used oil is poured away or reused. Europe’s green-fuel rules have turned that waste into an export commodity.
- —Why now Lagos State made Ororo its partner for used cooking oil collection in February. The new money arrives two months after a joint training of 250 market women and waste pickers.
- —What happened Rising Tide Africa, a women-led angel network, committed up to US$1 million to Ororo Waste Management. The corporate note was announced on 29 September.
- —The numbers The first tranche arrived on 16 September; more can follow until 16 December. Ororo puts national used cooking oil output at 840,000 tonnes a year.
- —What it means for you Foreign buyers of biodiesel and aviation fuel feedstock gain another traceable Nigerian supplier. For investors, it shows small private debt reaching Nigeria’s informal recycling economy.
- —Still open The note’s interest rate and term were not disclosed. Ororo’s export volumes and certification claims have not been independently confirmed.
A Nigerian angel network of women investors is backing a start-up that buys used cooking oil from market women and waste pickers. The oil is exported as feedstock for biodiesel and sustainable aviation fuel.
In Nigeria, Africa’s most populous country, a start-up that pays people for used cooking oil has secured new funding for waste collection. Rising Tide Africa, an angel network led by women investors, has committed up to US$1 million to Ororo Waste Management.
Its waste collection network gathers oil from households, restaurants and markets in Lagos, Abuja and Port Harcourt. It sells the oil abroad as raw material for cleaner fuels, according to the joint statement released on 29 September.
A loan-style note, paid in tranches
The money comes as a corporate note, a form of debt, not a grant or an equity stake. The statement values the commitment at N1.4 billion (about US$1.05 million at 30 September rates).
Naira figures here are converted at N1,327 to the US dollar, the open.er-api.com rate on 30 September 2026. Ororo received the first tranche on 16 September, and further tranches can be paid until 16 December.
The partners did not disclose the interest rate, the term or the size of the first tranche. The funds are meant for collection drums, trucks, hub storage and working capital, the companies said.
Ororo co-chief executive Ayo Banjo said the money pays for “the unglamorous but necessary part” of the business. He said it lets Ororo pay a market woman in Alausa, a Lagos district, the same day she sells.
Why European refiners want Nigerian kitchen oil
Used cooking oil can be refined into biodiesel and sustainable aviation fuel, known as SAF. European Union rules now require aviation fuel suppliers to blend SAF into jet fuel at EU airports.
Under the EU’s ReFuelEU Aviation law, that share started at 2% in 2025 and rises to 70% by 2050. Oils and fats such as used cooking oil are among the eligible feedstocks, according to the European Commission.
The EU’s revised Renewable Energy Directive, known as RED III, adds pressure on road fuels. It asks member states to reach a 29% renewable share in transport, or a 14.5% cut in emissions intensity, by 2030.
Buyers need proof that the oil really is waste and not fresh vegetable oil. Ororo says it holds ISCC certification, a widely used international sustainability label for fuel feedstocks.
Banjo said European refiners “buy documented, ISCC-certified tonnes.” Ororo says it tracks each sale by GPS and QR code and pays collectors by mobile money.
A market Lagos already wants to capture
Ororo estimates that Nigeria produces about 840,000 tonnes of used cooking oil a year, with more than 95% never collected. Its target of 150,000 tonnes a year by 2031 would be about 18% of that.
The Lagos State government backs the business case. In February its environment agency, LASEPA, launched a used cooking oil programme with Ororo as partner.
LASEPA general manager Babatunde Ajayi said then that the scheme could unlock at least US$20 million in value for the state. He said Lagos alone may produce about half of Nigeria’s used cooking oil.
In July, Ororo, LASEPA and the Shell Foundation trained about 250 market women, waste pickers and young people in Lagos. Participants are paid for every litre they supply, Ororo said.
The food-safety side of used oil
Officials also frame collection as a health measure. Ajayi said that reheating cooking oil more than once changes its chemistry and makes it harmful to eat.
He added that oil poured into drains mixes with plastic, blocks drainage and worsens flooding. Oil sold back into kitchens or street-food stalls is the risk that paid waste collection is meant to remove.
Nigeria’s food regulator, the National Agency for Food and Drug Administration and Control (NAFDAC), polices how edible oil is handled. In July it seized two edible-oil tankers in Lagos that were carrying diesel.
Women-led angel investing, and its limits
Rising Tide Africa describes itself as a women-led, pan-African angel network founded in 2016. It says it has more than 122 members in seven countries and has backed 39 early-stage companies.
Co-founder Yemi Keri called the deal “gender-lens investing in practice”, meaning capital aimed at businesses that benefit women. She said market women and waste pickers already do most of the collecting but are rarely paid fairly.
The partners set five-year targets: over 40 hubs, and paid collectors rising from about 5,000 to more than 200,000 by 2031. At least half of new collection points should be run by women, they said.
Ororo says it will report income, jobs and gender data yearly under the 2X Global Criteria, a gender-investing standard. These are company goals, not results.
What is not independently confirmed
The 840,000-tonne estimate, the export record and the collector numbers come from the companies. No regulator or buyer has published figures that confirm them.
A 2024 World Bank study said Lagos needs about N58 billion (about US$44 million) a year to manage its municipal solid waste. Private waste collection of one commodity is no substitute for city services.
What to watch next
The next test is whether further tranches are paid before 16 December. The partners say an income survey of the first trained collectors will be finished by the end of the year.
A move from three hubs to more than 40 would show whether paid oil waste collection can spread beyond three cities.
Frequently Asked Questions
What has Rising Tide Africa invested in?
Rising Tide Africa, a women-led angel network, has committed up to US$1 million to Ororo Waste Management through a corporate note. Ororo collects used cooking oil in Nigeria and exports it as fuel feedstock.
Is this money a grant?
No. A corporate note is a form of debt, paid in tranches from 16 September 2026 until 16 December.
Why is Nigerian used cooking oil in demand?
European Union rules require more sustainable aviation fuel and renewable transport fuel. Used cooking oil is an eligible raw material, so certified, traceable supplies can be exported to European refiners.
How much used cooking oil does Nigeria produce?
Ororo estimates about 840,000 tonnes a year, with more than 95% never collected. That figure comes from the company and has not been independently confirmed.
Connected Coverage
Sources
- dailytimesng.com
- businessday.ng
- punchng.com
- premiumtimesng.com
- premiumtimesng.com
- transport.ec.europa.eu
- documents1.worldbank.org
- data.worldbank.org
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