This paper provides an overview of environmental policy research focusing on market-based instruments, and their applicability to developing countries, especially Nigeria. It also addresses more general developments in the field of Deposit Refund Systems and explores the practicality of a deposit-refund system (DRS) to litter management in Nigeria. A prominent theme of our discussion is economic instruments, wherein approaches will be explored, to understand the link between compliance, and neglect inherent in environmental issues of a developing country like Nigeria. Where the objective is to reduce littering, deposit-refund system was considered the choice for the framework of this study after researches detailed its benefits, and relevance to the research problem. Deposit Refund System (DRS) is subsequently discussed as a policy intervention, and the feasibility of introducing the system in Nigeria is evaluated. By understanding the implementation mechanisms, the economic viability, and environmental effectiveness of a deposit refund system, it is concluded that a DRS can support a country’s drive to solve some of its pressing issues of environmental concern even with the bare minimum of government administration. The consolidation of information from this research can kick-start the conversation on ways to incorporate this system as part of Nigeria’s solid waste management policy.