The growing accumulation of scrap tyres in Nigeria poses significant environmental and public health risks due to improper disposal methods such as open burning and illegal dumping. In response to this challenge, pyrolysis has emerged as a sustainable waste management and resource recovery technique capable of converting scrap tyres into valuable products such as pyro-diesel, char, and steel wire. However, the economic viability and energy performance of pyrolysis systems remain largely unexplored in the Nigerian context. This study addresses this gap by evaluating the techno-economic feasibility and energy efficiency of scrap tyre valorization via pyrolysis under two configurations: (i) a standalone pyrolysis plant (Scenario 2) and (ii) a pyrolysis plant integrated with power generation (Scenario 1). Process simulations were carried out using Aspen PLUS V12, while cost estimations were conducted with the Aspen Process Economic Analyzer. Both configurations were assessed for a processing capacity of 20 tons per hour. The process yields included pyro-diesel (39.13%), char (35.62%), steel wire (15.04%), pyrolytic gas (7.90%), and heavy oil (2.30%). Energy analysis showed that Scenario 2 attained a higher energy efficiency of 79.72%, compared to 74.76% in Scenario 1. Nonetheless, Scenario 1 demonstrated superior economic performance, with a Net Present Value (NPV) of USD 28.65 million (NGN 42.97 billion) and an Internal Rate of Return (IRR) of 34.48%, despite its higher capital investment. These findings highlight a critical trade-off between energy efficiency and profitability. While standalone pyrolysis systems are more energy efficient, integrating power generation significantly enhances financial returns—making it a more attractive model for large-scale application in Nigeria’s waste-to-energy landscape.