A 30-year Build-Own-Operate agreement (with perpetual continuation after Year 30) converts the Ibeju-Lekki Corridor's 1,330 TPD of confirmed manufacturing feedstock into an independent Royalty receipt stream for Lagos State beginning Month 13 — reported as a separate transaction from the Beneficiation Fee. One CSA structure: the CSA (Circular Royalty™ Standard CSA),

Authority Commitment Qualification

Eight Commitments · One Engagement

Five items are required for every engagement and establish the structural commitment between Lagos State and Carbotura. Three optional items signal sovereign offtake election — relevant when the Authority acts as a sovereign manufacturer or strategic materials buyer.

5 REQUIRED · ALL ELECTED 3 OPTIONAL · 0 ELECTED
01REQUIRED
Commit feedstock
All designated waste streams legally assigned to Carbotura via CSA · liability removed from Lagos State balance sheet.
Lekki Corridor: ~1,330 TPD addressable (1,020 TPD residential + 310 TPD LFTZ industrial proxy); Phase Initial 400 TPD; Phase Expanded target 1,330 TPD
02REQUIRED
Commit land + landfill deed
Manufacturing Site Deed + Remediation Site Deed transferred to Carbotura · registered title · two independent instruments.
NG: certificate of occupancy via Lagos State Lands Bureau (manufacturing site within Lekki Free Trade Zone)
03REQUIRED
Commit tax abatements
Local strategic investor instrument · zero corporate income tax for qualifying period · condition precedent to CSA execution.
NG: NEPZA Free Trade Zone full tax holiday (sovereign-grade; substantially stronger than US PILOT)
04REQUIRED
Receive royalty stream on materials
Circular Royalty™ Stream + Exogenesis™ Royalty Stream · perpetual · paid by Carbotura TO Lagos State · never combined.
Reported as separate transactions per the Separate Transaction Principle
05OPTIONAL · SUBJECT TO STUDY
Exogenesis™ landfill mining
Exogenesis™ Programme · APS · fully electric fleet · $50/tonne royalty TO Lagos State · land restored on completion.
Lekki: Olusosun & Lagos State legacy chain — Olusosun primary (closing under 18-month decommissioning from December 2024), Solous III, Epe, Abule Egba, Badagry, Ikorodu
06OPTIONAL · NOT ELECTED
Commit offtake for sovereign reserves
Sovereign preferential election right over all RC3–RC5 manufactured output · best efforts · no take-or-pay.
· Sovereign Critical Materials Offtake (KSA construct)
07OPTIONAL · NOT ELECTED
Sovereign preferential pricing on materials
Sovereign preferential rate on -elected RC3–RC5 output · rate set at CSA negotiation · confidential · only meaningful if 06 elected.
· Sovereign Critical Materials Authority pricing
08OPTIONAL · NOT ELECTED
Pre-purchase MAMP payment
The Authority prepays Carbotura under Bay’al-Salam structure · required CP for pricing discount · Carbotura does not deploy capital without receipt.
Sovereign engagements only
Sections

What This Means

Circular Royalty™ (Manufacturing Beneficiation)
OUTFLOW ↑
Beneficiation Fee: $22/ton (Yr 1)
+2.5%/yr escalator
Phase Initial: ~$3.21M/yr (Yr 1)
Carbotura's Beneficiation Fee on feedstock delivered
INFLOW ↓
Circular Royalty™: 120% of corresponding Fee
+1pp/yr escalator (Year 5 = 124%, Year 30 = 149%)
Phase Initial: ~$3.85M/yr (Yr 2)
→ ~$9.78M/yr (Yr 30)
From Carbotura product revenues · 13-month lag · rolling
OUTFLOW ↑
$0 Beneficiation Fee
Consideration: site deed at signing

Lagos State deeds project site within LFTZ to Carbotura at CSA execution
INFLOW ↓

+1%/yr escalation from Year 2
Phase Initial: ~$14.6M/yr (Yr 2)
→ ~$19.3M/yr (Yr 30)
From Carbotura product revenues · 13-month lag · symmetric Take-or-Pay floor
Exogenesis™ Royalty · Universal Bonus (under the CSA or B)
Olusosun & Lagos State Legacy Chain
CONSIDERATION ↑
Post-closure landfill deeded at signing

Olusosun primary; legacy chain extension
All post-closure care, leachate, methane, monitoring obligations transfer to Carbotura
INFLOW ↓
Exogenesis™ Royalty: $50/ton extracted
+1%/yr escalation from Year 2
Anchor case (Olusosun ~73,000 tpy): ~$3.65M/yr
From Year 5 post-COD · independent royalty stream · 13-month lag from first extraction
One Circular Supply Agreement. The Exogenesis™ Royalty is a CSA add-on — activated when a qualifying legacy landfill is available (Olusosun primary; the Lagos State legacy chain extends to Solous III, Epe, Abule Egba, Badagry and Ikorodu). All streams — Beneficiation Fee, Circular Royalty™, and Exogenesis™ Royalty — are reported as separate transactions per the Separate Transaction Principle (MR §4.8). They are never netted in any table, chart, or statement.
  • What Carbotura offers: A privately financed, Build-Own-Operate ACM facility receiving up to 1,330 TPD of Ibeju-Lekki Corridor feedstock at full scale — 1,020 TPD residential + 310 TPD LFTZ industrial proxy, in NEPZA Free Trade Zone operation. Carbotura's SPV funds, builds, and operates the facility. Lagos State's sole financial obligation under the CSA is the per-ton Beneficiation Fee. The Exogenesis™ Royalty bonus stacks on the CSA as an independent landfill remediation royalty stream across the Lagos State legacy chain. Carbotura, Inc. provides an 18-month Parent Performance Guarantee on all SPV payment obligations during operations ramp.
  • What Lagos State commits: A 30-year Circular Supply Agreement (CSA) for feedstock supply — minimum 30 years from Phase Initial COD; perpetual continuation unless terminated by Non-Renewal Notice (Year 28+, 24-month notice). $22/ton Beneficiation Fee (+2.5%/yr). Exogenesis™ Royalty bonus (under the CSA): post-closure landfill deed at signing as the qualifying remediation asset — Olusosun anchor case, extension across Lagos State legacy chain.
  • What Lagos State receives: An independent Royalty stream paid by Carbotura from product revenues — beginning 13 months after first Beneficiation Fee payment. Circular Royalty™ at ~$3.85M/yr (Year 2), growing to ~$9.78M/yr (Year 30).6M/yr (Year 2), growing to ~$19.3M/yr (Year 30). Exogenesis™ Royalty bonus (under the CSA, Olusosun anchor): adds ~$3.65M/yr from Year 6 (first extraction year). All streams reported as separate transactions.
  • Carbotura proposes a 30-year Circular Supply Agreement (CSA) under which the Lagos State Government or its designated authority delivers feedstock from the Ibeju-Lekki Corridor; Carbotura's Special Purpose Vehicle builds, owns, and operates an Advanced Circular Manufacturing (ACM) facility entirely at its own capital cost within the Lekki Free Trade Zone.
  • Lagos State's sole financial commitment is the Beneficiation Fee of $22/ton — payable only on actual feedstock delivered. There is no construction obligation, no technology obligation, no operating liability, and no minimum volume guarantee required of the state.
  • Beginning 13 months after the first Beneficiation Fee payment, Carbotura pays a Circular Royalty™ back to Lagos State: 120% of the corresponding Beneficiation Fee, escalating by one percentage point per year. By Year 2, the per-tonne Circular Royalty™ rate exceeds the per-tonne Beneficiation Fee (separate transactions). By Year 5, the Circular Royalty™ receipt exceeds the Beneficiation Fee paid by approximately $0.77M/year at Phase Initial scale.
  • The ACM facility, co-located with the Lekki Deep Seaport and Dangote Refinery within the LFTZ, simultaneously produces graphite, graphene, ultrapure water (addressing 300M+ gallon/day Lagos water deficit), and hydrogen — creating three additional revenue streams and a direct infrastructure solution to Lagos's concurrent energy and water crises.
  • The procurement decision window is defined by the Olusosun/Solous III decommissioning timeline. A Joint Working Group phase must be authorized by mid-2026 for Phase Initial to achieve Commercial Operations before the disposal capacity gap is critical.

Executive Implications

  • Zero Lagos State capex means this proposal requires no budget appropriation — only a policy decision to authorize the Joint Working Group phase and initiate CSA negotiation.
  • The Circular Royalty™ begins flowing 13 months after first delivery. At Phase Initial (400 TPD), Year 2 per-tonne royalty exceeds per-tonne fee by ~$562,000 annually. At Phase Expanded (1,330 TPD), this spread exceeds +$1.8M/year, compounding annually (separate transactions per the Separate Transaction Principle).
  • Olusosun and Solous III are formally in 18-month decommissioning from December 2024. The LFTZ ACM site is the only proposed local alternative with confirmed NEPZA approval pathway, sovereign guarantee precedent, and zero-dependency on LAWMA replacement infrastructure being built on time.

§1 — Commercial Structure and Decision Window

Regulatory Predicate Transition (RPT) — Standing Requirement

Carbotura's ACM facility is a manufacturing facility classified under any of the six manufacturing NAICS codes (325180, 325998, 327992, 331110, 331314, or 331492). It is not a solid waste facility and must not be classified, permitted, or regulated under solid waste codes (562212, 562213, 562219, or 562920). This distinction is a structural prerequisite of the investment model — not a negotiating position.

Carbotura will not execute a CSA, commit capital, or commence deployment in any jurisdiction that classifies the ACM facility under solid waste codes or applies a solid waste regulatory framework to the facility or its feedstock intake. Any procurement process or regulatory pathway that imposes solid waste classification is addressed jointly under the RPT pathway; the endpoint is categorical — manufacturing classification across all permitting, licensing and regulatory contexts.

Basis: Manufacturing NAICS classification is required as a condition of contract execution.

Standing condition · MR §3

§1.1 — The Circular Supply Agreement (CSA)

The CSA is a bilateral agreement between Lagos State's designated waste management authority (LAWMA or successor entity) and Carbotura's Special Purpose Vehicle (SPV). Under the CSA:

  • Lagos State commits to: Directing a contracted volume of feedstock from the Ibeju-Lekki Corridor to the ACM facility's intake point within the LFTZ, pursuant to a feedstock delivery schedule agreed at the Joint Working Group phase stage.
  • Carbotura's SPV commits to: Accepting all delivered feedstock at or above the contracted minimum; paying the Beneficiation Fee on each tonne accepted within the payment cycle; constructing, commissioning, and operating the ACM facility at its own capital cost; paying Circular Royalties commencing 13 months after corresponding Beneficiation Fee payments.
  • Term: 30 years from Phase Initial COD. Renewable by mutual agreement.
  • No take-or-pay obligation on Lagos State — the Beneficiation Fee is only payable on actual tonnes delivered. The CSA does not create a budget liability for unfulfilled volumes.
  • NEPZA FTZ context: The SPV will be licensed as a Free Zone Enterprise under the NEPZA Act, entitling it to all NEPZA tax and duty exemptions. The CSA commercial terms are denominated in USD for foreign exchange stability.

§1.2 — Decision Window

Procurement Decision Deadline

Phase Initial COD requires T0 + 24 months. Olusosun and Solous III decommissioning commenced December 2024 with an 18-month formal closure programme (target: mid-2026). To achieve Phase Initial COD before the disposal crisis window deepens to a structural emergency, the Joint Working Group phase must be authorized no later than Q3 2026. Each quarter of delay in authorization defers Phase Initial COD by one quarter and extends the pre-royalty period by an equivalent duration. Reversing the NEPZA licensing pathway once initiated requires significantly more time than the initial authorization.


§1.5 — CSA Structure

At CSA execution, Lagos State The Exogenesis™ Royalty Bonus is a universal additive stream available as a CSA add-on, activated when a qualifying closing or closed landfill is deeded at signing. Election is exclusive at signing; subsequent renegotiation requires mutual agreement and reset terms.

Lekki / Lagos State Application Note: Both the CSA are commercially available to Lagos State. + Exogenesis™ Royalty Bonus is particularly compelling for lekki given the Lagos State legacy landfill chain (anchored by Olusosun, currently in 18-month decommissioning from December 2024) and the unique balance-sheet event opportunity at CSA execution.

Gross Royalty Inflow Comparison vs (+ Exogenesis™ Bonus)
Gross royalty inflows to Lagos State under each election. The Beneficiation Fee is a completely separate outflow transaction — shown here for reference but never offset against the royalty (per Separate Transaction Principle). Exogenesis™ Royalty bonus stacks on the CSA. Phase Initial · 400 TPD · 146,000 TPY.
Circular Royalty™ received Beneficiation Fee paid (reference, separate transaction) + Exogenesis™ Royalty — Two-Stream Inflow (independent)
All values ESTIMATED · Royalty and Fee are independent CSA transactions, never offset · Phase Initial 400 TPD / 146,000 TPY · Exogenesis™ onset Year 5 post-COD (Olusosun extraction begins) · Carbotura CSA v2026.7
EXOGENESIS ROYALTY OPPORTUNITY — OLUSOSUN & LAGOS STATE LEGACY CHAIN

The Olusosun Landfill — Africa's largest active landfill, in 18-month decommissioning from December 2024 — is the anchor qualifying asset for the Exogenesis™ Royalty Bonus. Where the CSA includes the post-closure care obligation for a closing landfill, Carbotura commits to deploy Exogenesis™ (legacy landfill mining with APS · fully electric fleet) within 3–7 years post-COD, alongside the primary Regenesis™ facility. The Lagos State legacy chain — Solous III, Epe, Abule Egba, Badagry, Ikorodu — provides 6 qualifying assets in sequence, creating a long-running concurrent royalty stream and progressive resolution of multiple balance-sheet liabilities for Lagos State.

StreamRateEscalatorOnsetAnchor case (Olusosun ~73,000 tpy)
Circular Royalty™120% × current Fee+1pp/yrMonth 13 post-COD~$3.85M/yr (Yr 2)
Exogenesis™ Royalty$50/ton extracted+1%/yr13 months after first extraction~$3.65M/yr

Additional balance-sheet effects under the Exogenesis™ Royalty bonus: (1) all post-closure care, leachate, methane, and monitoring obligations transfer to Carbotura at CSA execution; (2) LAWMA's IPSAS-equivalent post-closure care liability is extinguished at execution — with Lagos State legacy chain providing six qualifying assets in sequence, the cumulative liability extinguishment is the largest balance-sheet event available under the CSA framework; (3) Carbotura provides Environmental Impairment Liability, Pollution Legal Liability, and a Post-Closure Performance Bond replacing Lagos State's existing financial assurance obligations. The Olusosun closure timing makes lekki especially compelling — the Exogenesis™ Royalty stream stacks on the CSA's Circular Royalty™ or



§2 — Deployment Architecture

§2.1 — Phase Configuration Table

PhaseDeployed TPD% ResearchedModules Annual Feedstock (tpy)CODSource Type
Phase Initial400 TPD30% 4 × 100 TPD146,000T0 + 24 months USER-DEFINED
Phase Medium800 TPD60% 8 × 100 TPD292,000T0 + 42 months USER-DEFINED
Phase Expanded1,330 TPD100% 13–14 × 100 TPD485,450T0 + 60 months ESTIMATED

Module math: ceil(deployment_tpd / 100). Phase Expanded TPD (1,330) = total researched addressable volume for the Ibeju-Lekki Corridor. T0 = Joint Working Group phase completion.

§2.2 — BOO Capital Structure — Zero Lagos State Capex

Build-Own-Operate — Zero Government Capital Exposure

Carbotura's SPV funds 100% of the ACM facility capital cost. Lagos State has zero construction debt, zero technology obligation, and zero operating liability. The State's only financial interaction with the facility is (a) paying the Beneficiation Fee on tonnes delivered, and (b) receiving the Circular Royalty™ from Month 13 onward.

Capital ElementPhase InitialPhase MediumPhase ExpandedSource
ACM Facility CapEx$247.5M$477.5M~$782MFORMULA
Solar Field (30 MW → 100 MW+)$35M est.$60M est.$100M+ est.ESTIMATED
Hydrogen Infrastructure$20M est.$35M est.$55M est.ESTIMATED
Total Project CapEx~$302.5M~$572.5M~$937MESTIMATED
Lagos State Contribution$0 — Zero Government Capital Required

ACM CapEx formula: $75M (first 100 TPD module) + $57.5M × additional modules. Solar and hydrogen CapEx are order-of-magnitude estimates subject to engineering study. All capital funded by SPV equity (20%) + grant (15%) + institutional debt (65%) per Carbotura standard capital structure.

§2.3 — Feedstock Stream Coverage by Phase

StreamPhase Initial (400 TPD)Phase Medium (800 TPD)Phase Expanded (1,330 TPD)Access Status
Residential organic/putresciblePrimary ✓Primary ✓Primary ✓IMMEDIATE
Residential plasticsPrimary ✓Primary ✓Primary ✓IMMEDIATE
Residential paper/cardboardPrimary ✓Primary ✓Primary ✓IMMEDIATE
Residential metals, textiles, inertPartial ✓Full ✓Full ✓IMMEDIATE
LFTZ industrial / commercial wasteAdding ✓Full ✓CONDITIONAL
Construction & demolitionAdding ✓Full ✓CONDITIONAL
Faecal sludge / biosolidsAdding ✓ACCESSIBLE
Biomass / green wasteAdding ✓Full ✓ACCESSIBLE

§2.4 — Site Candidate Analysis

Three priority zones identified within the Ibeju-Lekki Corridor. All three lie within or adjacent to NEPZA-designated Free Trade Zone infrastructure. Filter by zone type. Click card or marker for details.

Priority 1 Finding

LFTZ South/West Quadrant (LFZDC Zone) is the clear Priority 1 site. It is the only candidate with confirmed NEPZA FTZ status, 24/7 power and water pre-installed, direct seaport adjacency for graphite/graphene product export, and active co-location with the Dangote Refinery as a confirmed industrial feedstock source. No other candidate offers this combination of regulatory advantage, logistics infrastructure, and institutional co-location at the same site.

Sources: Google Places (confirmed March 2026) · LFZDC official site · Alaro City / NWQDC · NEPZA Act (1992). Driving distances are road-network estimates; formal site assessment required at Joint Working Group phase stage.

§2.4 — Site Candidate Summary Table

PriorityZoneAcreageZoningLand AuthorityCo-location AdvantageKey Consideration
P1 LFTZ South/West Quadrant~100 ha NEPZA FTZ — industrial/manufacturing LFZDC Seaport adjacency (2 km), refinery feedstock (1.5 km), 24/7 power, pre-built FTZ infra Strongest regulatory position; requires LFZDC lease agreement
P2 Alaro City / NW Quadrant~50 ha NEPZA FTZ — mixed industrial NWQDC (Rendeavour/LASG) Closer to residential corridor; planned airport; British school community stakeholder NEPZA FTZ confirmed; longer haul to port; residential sensitivity requires engagement
P3 Epe Industrial Corridor~40 ha Mixed industrial — Lagos State land Epe LGA / LASG Adjacent LAWMA WTE; LAWMA operational relationship; nearest to Epe residential Outside LFTZ — loses NEPZA exemptions unless separately designated; significant disadvantage

§2.5 — Phase Initial Feedstock Sufficiency

Phase Initial — Fully Supported Without Third-Party Negotiation

Phase Initial requires 400 TPD. The immediately accessible residential MSW streams alone (organic + plastics + paper = 795 TPD) provide nearly 2× Phase Initial's requirement with no contract negotiation needed. The Phase Initial configuration is over-subscribed by the immediate feedstock supply. The access constraint is purely logistical — establishing the intake infrastructure within the LFTZ site. No LFTZ industrial agreements, no LSWMO biosolids protocols, and no C&D stream negotiations are required for Phase Initial to operate at full capacity.

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All three candidate zones and feedstock references are listed in the panel at right.

Candidate Zones & Feedstock References

P1 LFTZ South/West Quadrant
~100 ha available · NEPZA Free Trade Zone
Authority: Lekki Free Zone Development Company FZC (LFZDC)
Co-location: Dangote Refinery (1.5 km), Lekki Deep Seaport (2 km), 24/7 grid power
Residential corridor: 12 km · Refinery: 1.5 km · Port: 2 km
P2 Alaro City / NW Quadrant
~50 ha industrial plots available · NEPZA FTZ (NWQDC)
Authority: North West Quadrant Dev Co (Rendeavour/LASG)
Co-location: Planned airport (5 km), closer to residential corridor (15 km)
Residential corridor: 15 km · Refinery: 20 km · Port: 22 km
P3 Epe Industrial Corridor
~40 ha adjacent to LAWMA WTE site · Lagos State land
Authority: Epe LGA / Lagos State Government
Co-location: LAWMA WTE site (adjacent, complementary), Epe residential zone (18 km)
Residential corridor: 18 km · Refinery: 30 km · Port: 28 km ⚠ Not within LFTZ — requires separate NEPZA designation or equivalent structure
REF Ibeju-Lekki Residential Corridor
Primary MSW source zone · ~850,000 people · 1,020 TPD residential feedstock · LAWMA PSP collection
REF Dangote Refinery (Industrial Feedstock)
~300 TPD LFTZ industrial waste (CONDITIONAL) · 650,000 BPD refinery · co-located LFTZ
REF Lekki Deep Seaport (Product Offtake)
Graphite/graphene export point · 16.5 m depth · 2.5M TEU/year capacity · 2 km from P1

§3 — Economic Structure — Beneficiation Fee

FWDC Source Classification — ESTIMATED

The Full Waste Disposal Cost (FWDC) planning basis of $14/ton is ESTIMATED from publicly documented PSP operator cost ranges and LAWMA disposal data for Lagos State. This is a mid-point of the verified public range ($11–17/ton). The Joint Working Group phase should engage LAWMA to obtain contracted disposal rates, which would upgrade this to VERIFIED. The Beneficiation Fee and all derived figures in this section use the $14/ton planning basis explicitly.

§3.1 — Beneficiation Fee — Nigeria Market Configuration

The Carbotura standard Beneficiation Fee formula references a floor and ceiling calibrated to developed-market FWDC levels. For the Lekki Sustainable Smart Infrastructure City, the FWDC of $14/ton reflects Nigeria's emerging-market pricing dynamics. The Beneficiation Fee is established at $22/ton — a 57% premium above the FWDC planning basis — representing the commercial recognition of ACM's superior value delivery: elimination of the long-haul Ojota diversion cost, within-FTZ co-location, and NEPZA operating benefits that reduce the jurisdiction's total waste management cost relative to the deteriorating status quo.

Beneficiation Fee — Lekki Market Configuration
Beneficiation Fee = $22.00/ton
Premium above FWDC: +$8.00/ton (+57%) · Carbotura standard parameters (floor/ceiling) apply in developed-market contexts. Nigeria market configuration: TMC established at $22/ton reflecting local FWDC economics and NEPZA FTZ operational advantages.
Annual escalator: 2.5%/year (Carbotura standard parameter) · First escalation effective at Phase Initial COD anniversary

§3.2 — Annual Beneficiation Fee Obligations by Phase

PhaseTPDAnnual Volume (tpy)Beneficiation Fee/ton (Year 1)Annual TMC Obligation (Year 1)Annual TMC (Year 5, est.)Annual TMC (Year 10, est.)
Phase Initial400146,000$22.00$3,212,000$3,540,000$4,012,000
Phase Medium (incremental)800292,000$22.00$6,424,000$7,081,000$8,023,000
Phase Expanded (incremental)1,330485,450$22.00$10,680,000$11,771,000$13,339,000

Year 5 TMC = Year 1 × 1.025^4. Year 10 TMC = Year 1 × 1.025^9. Phase Medium and Expanded rows show incremental full-phase obligation (all modules operating). Beneficiation Fee source type: MODELLED. All figures carry ESTIMATED badge on FWDC-derived inputs.

Gross cost displacement and Circular Royalty™ cash flow are quantified separately. Both are independent financial effects of the CSA. [Canonical sentence 1 of 3]


§4 — Circular Royalty™

§4.0 — Circular Royalty™

Standard CSA: Lagos State pays a per-ton Beneficiation Fee on feedstock delivered; Carbotura pays a Circular Royalty™ calibrated to 120% of the corresponding Beneficiation Fee, +1pp/yr escalator, beginning Month 13 with rolling monthly cash flow. By design, the per-ton Circular Royalty™ exceeds the per-ton Beneficiation Fee from approximately Year 2 onward (separate transactions, never netted).

§4.0.1 — Contractual Definition

Circular Royalty™ Formula
Royalty(m+13) = TMC(m) × Royalty_Rate(m)
Where: m = month of Beneficiation Fee payment · m+13 = month of corresponding Circular Royalty™ payment (13-month lag, rolling basis) · Royalty_Rate(m) = 120% in Year 1, escalating +1 percentage point per year

§4.0.2 — Parameter Table

ParameterValueBasis
Base royalty rate (Year 1)120% of corresponding Beneficiation FeeCarbotura standard parameter
Royalty rate escalator+1 percentage point per yearCarbotura standard parameter
Royalty rate — Year 5124% of corresponding Beneficiation FeeFormula
Royalty rate — Year 10129%Formula
Royalty rate — Year 30149%Formula
Beneficiation Fee escalator2.5%/yearCarbotura standard parameter
Payment lag13 months after corresponding Beneficiation Fee paymentLocked — CSA structure
Payment basisRolling monthly (lagged cash flow)Locked — CSA structure
Term30 years from Phase Initial CODLocked — CSA structure

§4.0.3 — Mandatory Fiscal Period Distinction

PeriodTimingFiscal Position (Phase Initial)Description
Pre-Royalty PeriodMonths 1–13 post-COD−$22.00/ton (TMC paid; $0 royalty received) Community pays Beneficiation Fee on delivered feedstock. First Circular Royalty™ payment arrives in Month 14 (structural 13-month lag, separate transaction). Pre-royalty period; this is the cost of manufacturing feedstock supply service, not a structural drag.
Royalty RampMonth 13 through ~Month 24Royalty begins offsetting TMC Rolling Circular Royalty™ payments begin. By calendar Year 2, per-tonne royalty payments (120% of prior-year Beneficiation Fee) exceed per-tonne current-year fee obligation (separate transactions).
Steady-StateYear 2 onward (compounding)Per-tonne Royalty exceeds per-tonne Fee; spread widens annually Royalty exceeds Beneficiation Fee on a per-ton basis by design. The margin widens each year as the royalty escalation (+1pp/yr) compounds against TMC escalation (2.5%/yr).

Canonical Statement 2: At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-ton basis.
Canonical Statement 3: Circular Royalty™ payments begin 13 months after corresponding Beneficiation Fee payments and ramp to full run-rate on a rolling basis.

§4.0.4 — Year-by-Year Cash Flow (Phase Initial — 400 TPD)

YearAvoided DisposalBeneficiation Fee/tonAnnual TMC Paid Royalty RateAnnual Royalty Received
Year 1 $14.00/ton · $2,044,000 $22.00$3,212,000 $0 (pre-royalty)
Year 2 $14.35/ton · $2,095,100 $22.55$3,292,300 120% (Year 1 TMC)$3,854,400
Year 5 $15.41/ton · $2,249,860 $24.26$3,541,960 124%$4,304,820
Year 10 $17.49/ton · $2,553,540 $27.50$4,015,000 129%$5,179,350
Year 20 $22.37/ton · $3,266,020 $35.16$5,133,360 139%$7,135,370
Year 30 $28.61/ton · $4,177,060 $44.97$6,565,620 149%$9,782,770

Avoided Disposal = FWDC planning basis $14.00/ton escalated 2.5%/year. Royalty begins 13 months after first TMC payment (Year 1 lag). Year-by-year TMC = $22 × 1.025^(n−1). Royalty rate escalates +1pp/year from 120% base. Phase Medium and Phase Expanded multiply proportionally at commencement. Source type: MODELLED.

Fiscal Position — Three Gross Items, Years 1–20
Royalty income exceeds Beneficiation Fee from Year 2. Avoided disposal cost is present from Year 1. All figures are gross — not pre-netted.
Avoided disposal cost
Beneficiation Fee paid
Circular Royalty™ received (Year 2+)
Royalty pending (Year 1)
$14.00
Avoided disposal · Year 1
$22.00
Beneficiation Fee paid · Year 1
$26.40
Royalty received · Year 2
Source: Carbotura Circular Advantage modeling · Registry values · Phase Initial 400 TPD · MODELLED

§4.1 — Exogenesis™ Royalty Bonus (Olusosun & Lagos State Legacy Chain)

Potential additive royalty stream, subject to Waste Characterization Study and mutual agreement — presented here as a structured option for discussion. If elected after study confirmation, activated when Lagos State deeds a qualifying closing or closed landfill to Carbotura at CSA execution. The legacy landfill becomes Carbotura's remediation asset; Carbotura deploys the Exogenesis™ Programme — APS (mechanical sorting) + fully electric extraction fleet — within 3–7 years post-COD, alongside the primary Regenesis™ facility. Olusosun is the anchor qualifying asset (currently in 18-month decommissioning from December 2024); the Lagos State legacy chain provides five additional qualifying landfills in sequence.

LandfillStatusEstimated extractable mass (initial estimate)Exogenesis™ Programme sequence
Olusosun LandfillClosing (18-month decommissioning from Dec 2024)~73,000 tpy extractable (anchor case)Year 5 post-COD — primary
Solous III LandfillActive (LAWMA-operated)TBD — LAWMA records pendingYear 7-9 post-COD — second wave
Epe LandfillActiveTBD — Lagos State Ministry of Environment records pendingYear 9-12 post-COD — expansion
Abule Egba LandfillClosedTBD — historical estimates pendingYear 12-15 post-COD — remediation phase
Badagry LandfillActiveTBDYear 15-18 post-COD — remediation phase
Ikorodu LandfillActiveTBDYear 18-22 post-COD — remediation phase

Lagos State legacy chain provides six qualifying assets in sequence. Phase Initial deployment (Olusosun anchor) confirmed; expansion phases conditional on individual landfill engineering studies during the CSA term. Each landfill onboarded under a discrete amendment to the Exogenesis™ Programme schedule.

ParameterValueBasis
Royalty rate$50.00 per ton extracted (Year 1 of extraction at each landfill)CSA Schedule E.2
Escalation+1.0% per year from Year 2 of extraction at each landfillCSA Schedule E.2
Payment lag13 months after first extraction (rolling monthly per landfill)Fixed
Programme onset (Olusosun anchor)Year 5 post-COD (first extraction at Olusosun); Year 6 first royalty paymentEngineering deployment schedule
Asset transferPost-closure landfill deeded at CSA execution — certificate of occupancy or equivalent registered instrumentLagos State Lands Bureau
Carbotura obligationsAll post-closure care, leachate management, methane capture, groundwater monitoring, surface restoration — transferred at CSA execution. Environmental Impairment Liability, Pollution Legal Liability, Post-Closure Performance Bond provided by Carbotura.CSA §6 (Environmental Indemnity)
StackingIndependent of and additive to the Circular Royalty™ ORSeparate Transaction Principle (MR §4.8)
Year (post-COD)Extraction tpy (Olusosun)Royalty rate $/tonAnnual Exogenesis™ Royalty Received
1–4$0 (Exogenesis™ Programme not yet operational at Olusosun)$0
5~73,000 (first extraction year — ramp)$50.00$0 (13-month lag — first royalty Year 6)
6~73,000$50.00+$3,650,000
10~73,000$52.02+$3,797,460
20~73,000$57.45+$4,193,850
30~73,000 (Solous III & Epe sequenced in)$63.46+$4,632,580

Olusosun anchor case extraction modeled at ~73,000 tpy (Phase Initial Exogenesis™ throughput). Subsequent Lagos State legacy chain landfills sequenced in via Programme amendments during the CSA term — cumulative effect significantly increases steady-state Exogenesis™ Royalty above Olusosun-only basis. All ESTIMATED.

Cumulative Balance-Sheet Event — Lagos State Legacy Chain. Across the six-landfill Lagos State legacy chain (Olusosun + Solous III + Epe + Abule Egba + Badagry + Ikorodu), the cumulative post-closure care liability extinguishment represents the largest single balance-sheet event available under the CSA framework. LAWMA's existing IPSAS-equivalent post-closure care provisions for these six landfills would be progressively extinguished as each is deeded to Carbotura under the Exogenesis™ Programme. Combined with Environmental Impairment Liability and Pollution Legal Liability assumption by Carbotura, this represents a multi-billion-naira balance-sheet remediation event for Lagos State across the CSA term.

§5 — Risk Register

RiskKey DriverWho Bears ItMitigationResidual Exposure
FWDC Verification FWDC planning basis is ESTIMATED ($14/ton) Lagos State Joint Working Group phase includes direct LAWMA cost audit; Beneficiation Fee contract priced against verified figure Low — LAWMA cost structure is publicly documented; range is narrow
Technology Performance ACM output yield and quality at Nigeria climate conditions Carbotura SPV (BOO structure) Technology performance bond in CSA; SPV bears full operating risk; no state exposure None to Lagos State under BOO structure
Timeline Slippage — Sovereign Guarantee FGN sovereign guarantee is CONDITIONAL — not yet secured Project (joint) NEPZA sponsorship pathway; DFI bridge facilities; Dangote Refinery precedent in same zone Moderate — guarantee delay extends financial close timeline
Third-Party Contract Constraints (LFTZ Industrial) LFTZ industrial waste access requires LFZDC agreement Carbotura SPV Phase Initial does not require LFTZ industrial streams; Phase Medium timeline allows adequate lead time Low for Phase Initial; Medium for Phase Medium
Competitive Procurement (Harvest Waste WTE) LAWMA may direct corridor PSPs to Epe WTE rather than ACM Lagos State (opportunity cost) ACM site within LFTZ is closer, higher-value, and produces durable materials vs. electricity; LAWMA MD's stated goal is material recovery — ACM aligns; early LAWMA engagement Low if LAWMA engagement initiated promptly
Residual Waste Stream Management ACM produces a non-zero residual fraction Carbotura SPV Residual management contract included in SPV operating budget; LFTZ has licensed incinerator (EnvironSafe) for non-recoverable fraction Low — residual fraction is small; managed at SPV cost
NGN/USD Exchange Rate USD-denominated Beneficiation Fee vs. NGN operational costs Both parties NEPZA FTZ allows full USD repatriation; CSA denominated in USD; LAWMA PSP cost escalation partly offsets Medium — structural, not eliminable; partially offset by export revenue
Security Environment LFTZ requires multi-layered security contract Project (joint) NEPZA police post (statutory); LSSTF coordination; private security contract to be negotiated at feasibility stage Manageable — LFTZ has established security precedent (Dangote Refinery)

§6 — Deployment Timeline

MilestoneTarget Date (from T0)Notes
Joint Working Group phase authorizationQ3 2026 (latest) T0 defined as CFS completion
Joint Working Group phase completion (T0)T0 + 3 months Carbotura standard deployment schedule
CSA negotiation and executionT0 + 3–6 months Concurrent with CFS final stages
NEPZA FTZ Enterprise License (SPV)T0 + 4 months 6-step NEPZA licensing procedure
Sovereign guarantee instrumentT0 + 6 months (target) CONDITIONAL — via FMITI/Presidency
Financial closeT0 + 6 months SPV equity + DFI debt + grant facility
Phase Initial construction startT0 + 6 months 400 TPD, 4 modules
⚡ Phase Initial CODT0 + 24 months First feedstock delivery; Beneficiation Fee obligations begin
First Circular Royalty™ paymentT0 + 37 months 13 months after Phase Initial COD
Phase Medium full operations (800 TPD)T0 + 42 months Additional 4 modules commissioned
Phase Expanded full operations (1,330 TPD)T0 + 60 months Full corridor coverage; solar field Phase 2 commissioned
CSA term end / renewal optionT0 + 30 years Renewable by mutual agreement

All dates reference Carbotura standard deployment schedule. Phase timelines are standard assumptions; final schedule determined at Joint Working Group phase. The hard procurement deadline (Q3 2026) is derived from the Olusosun/Solous III 18-month decommissioning programme commenced December 2024.


§7 — Community Value Stack

§7.1 — Fiscal Effects (Lagos State Direct)

Fiscal ElementPhase Initial (Year 1)Phase Initial (Year 2+)Phase Expanded (Steady-State)
Beneficiation Fee paid (disposal cost)−$3.21M/year−$3.29M+/year−$10.68M+/year
Circular Royalty™ received$0 (pre-royalty)+$3.85M+/year+$13.2M+/year (Year 2+)
Annual Royalty − Fee−$3.21M (Fee paid; Royalty pre-launch)+$0.56M (separate transactions)+$2.5M+ (growing)
30-Year cumulative Circular Royalty™ receipts (Phase Initial, gross)Approximately +$60M (modelled — see §4.4)

Gross cost displacement and Circular Royalty™ cash flow are quantified separately. Both are independent financial effects of the CSA. Figures are MODELLED from Registry-locked formula. Phase Expanded figures assume full 1,330 TPD operations from Year 2 onward at Phase Expanded scale.

§7.2 — Regional Economic Effects (Distinct from Direct Fiscal)

Economic EffectPhase InitialPhase ExpandedSource Type
Direct jobs created285 FTE945 FTEBASELINE
Indirect / supply-chain jobs5701,890BASELINE
Annual regional economic impact~$38.5M/year EST~$128M/year ESTESTIMATED
Carbon avoided86,500 tCO₂e/year287,000 tCO₂e/yearBASELINE
Ultrapure water recovered~1.46M gallons/day~4.86M gallons/dayBASELINE
Solar power net export~15 MW~50+ MWESTIMATED
Hydrogen output~4.8 t/day~16 t/dayBASELINE

Regional economic effects are distinct from Lagos State direct fiscal receipts above. Employment and economic impact figures are scaled from Carbotura standard parameters. Carbon, water, and hydrogen figures are scaled from ACM baseline metrics at respective TPD scales.


§8 — Why This Works in the Ibeju-Lekki Corridor

  1. Volume alignment: The corridor's 1,330 TPD researched addressable volume is confirmed from population data, per-capita rates, and LFTZ industrial proxy. Phase Initial (400 TPD) is over-subscribed by 2× from immediately accessible streams alone — no third-party negotiation required to fill the facility from day one.
  2. Infrastructure alignment: The LFTZ South/West Quadrant (P1) is the only candidate with NEPZA FTZ status confirmed, 24/7 power pre-installed (12 MW transitional gas-fired + 100 MVA scalable plant), direct seaport access for product export, and confirmed co-location with the Dangote Refinery's industrial waste stream. No other site in West Africa offers this combination at scale.
  3. Contract timing alignment: The Olusosun/Solous III decommissioning programme commenced December 2024. Epe landfill is already closed. The 18-month closure window creates a structural disposal crisis that defines the procurement urgency. Phase Initial COD at T0 + 24 months aligns with the period of maximum disposal capacity gap if the Joint Working Group phase is authorized by Q3 2026.
  4. Policy alignment: LAWMA MD Dr. Gbadegesin has publicly stated the state's transition from a linear to a circular waste system in which "waste is now seen as a resource." The National Municipal Waste Management Policy (2020) and Lagos State Plastic Waste Management Policy (2021) both mandate the circular value chain that ACM delivers. ACM is structurally aligned with Lagos State's declared policy position — it is not a foreign technology insert requiring policy override.
  5. Structural regulatory driver: The NEPZA FTZ designation is Nigeria's strongest investment protection framework: zero tax, zero import duty, full repatriation, no nationalization exposure, 25-year renewable land lease. No project in Lagos State has a stronger institutional protection stack. The Dangote Refinery and Lekki Deep Seaport demonstrate that billion-dollar institutional infrastructure can be delivered and operated within this framework.
  6. Economics specificity: The Beneficiation Fee of $22/ton is derived from the Ibeju-Lekki Corridor's verified FWDC range ($11–17/ton, planning basis $14/ton) — not a generic global rate. The 57% premium above FWDC reflects the specific logistics relief value of eliminating the Ojota diversion, the LFTZ co-location advantage, and the integrated energy and water outputs that directly address Lagos's documented infrastructure deficits. This is a proposal built on this community's numbers.