Local agencies do not have adequate capacity to handle the increasing solid waste mainly due to limited budgets. In most urban areas of Nigeria, the collection of fees and refuse are subcontracted to private companies, which have higher efficiency than government agencies. The current interest involving private companies in solid waste is driven by failure of government agencies to provide adequate services. Private participation in waste management has not been successful in Nigeria because such companies are profit driven and they are not monitored or regulated by government. Also due to the unprofitable nature of solid waste business, inefficiency and dishonesty on the part of some of the contractors and late payment of contractors by the agencies worsen the situation. For example, in Ibadan in 1991, there were twenty-five registered private waste collectors but only ten were found to be operational (Onibokun, 1999). The solid waste collection efficiency in Nigeria ranged from 5 percent in some semi-urban areas to 50 percent in urban areas.