The Nigeria Climate Innovation Centre (NCIC), a global network of World Bank’s Community Innovation Centres (CICs) and a member of the Climate Business Innovation Network (CBIN), has said that the proposed 10 per cent green tax on single-use plastics in Nigeria would affect production and consumption by increased pricing to consumers and households, as well as increased operational expense to producers.
While explaining that green taxation is a policy tool used by governments to promote sustainable behaviour by imposing taxes and fees on activities that pollute and degrade the environment, the centre said embracing circular economy principles could enhance economic resilience, reduce dependency on finite resources, and foster sustainable consumption and production patterns in the country.
In a groundbreaking new report “Positioning Plastic Waste Recycling as an Inclusive Catalyst for Unlocking a Sustainable Circular Economy in Nigeria,” NCIC advocated a shift towards a circular economy as a more viable alternative to the green taxation model proposed by the government for single-use plastics.
The comprehensive report explored the potential of a circular economy for plastic waste management in Nigeria. It highlights the limitations of green taxation and presents the circular economy as a more holistic and transformative solution.
NCIC Chief Operating Officer (COO), Mr Adamu Garba, who unveiled the report to the media in Lagos, said plastic waste has become a critical environmental concern in Nigeria, Africa’s most populous country, adding that rapid population growth and urbanisation have exacerbated the issue, with plastic waste posing a serious threat to public health, ecosystems, and the overall well-being of Nigerians.
The traditional approach of green taxes, which use financial disincentives to curb environmentally harmful practices, is gaining traction. However, the NCIC argued that green taxes, while offering a regulatory mechanism, have limitations.
The NCIC proposed a circular economy model that prioritises resource efficiency, reuse, and recycling. This approach, according to Adamu focuses on three pillars – designing products for recyclability, establishing efficient collection and recycling infrastructure and driving markets for recycled materials.
According to Adamu, by implementing these three pillars, the NCIC’s circular economy model offers a holistic approach to plastic waste management in Nigeria. “It not only addresses the environmental concerns associated with plastic pollution but also unlocks economic opportunities through job creation in waste collection, sorting, and recycling sectors. Additionally, it fosters a more sustainable and resource-efficient future for the country” he said.
The NCIC’s proposed model takes a holistic approach, focusing on three key areas, as explained by Adamu. Firstly, it prioritises designing products with recyclability in mind. This involves using materials that can be easily reprocessed and creating products that are designed for disassembly.
Secondly, the model emphasizes building a robust collection and recycling infrastructure. This includes establishing convenient drop-off points and partnering with waste management companies to ensure efficient collection and processing of plastic waste.
Adamu is optimistic about the model’s potential, highlighting its multifaceted benefits. “The circular economy can address environmental concerns by reducing plastic pollution and conserving resources,” he explains. “More importantly, it can stimulate economic growth by creating jobs in the waste management sector and attracting investment in recycling infrastructure.” The model also promotes social well-being by improving public health and empowering communities through waste management initiatives. This innovative approach presents a promising path towards a more sustainable future for Nigeria.
The NCIC report also emphasised the need for a shift in behaviour. The report noted that public education campaigns and promoting alternatives to single-use plastics are crucial to reducing overall waste generation. The report also highlighted the importance of supporting community-led initiatives that empower local populations to participate in waste management solutions.
Beyond behavioural change, the report explored the economic potential of a circular economy for plastic waste. It noted that the recycling market holds significant promise for job creation, reduced waste management costs, and the development of new markets for recycled materials.
The NCIC estimates that for every 5,000 tonnes of plastic waste, 1,500 jobs can be created from waste picking to aggregation, sorting, and processing, among other logistics jobs, and the generation Nigerian plastic recycling market is forecasted to reach 3.47 million tons by 2030. “The concept of recycling allows for resource efficiency by ploughing back what has been used into the production cycle, creating efficiency and sustainability. Recycling minimises energy consumption associated with raw material extraction, processing, and manufacturing. For example, recycling plastics reduces petroleum consumption.”
The NCIC argued that a circular economy offers a more sustainable solution compared to a green tax on plastic use. Green taxes, while potentially incentivizing reduced consumption, lack a long-term vision and could disproportionately impact vulnerable communities. In contrast, a circular economy fosters job creation, economic diversification, and environmental benefits.
The NCIC report serves as a call to action for stakeholders across all sectors. Policymakers, businesses, communities, and individuals all have a role to play in transitioning Nigeria towards a more sustainable future. The report provided a roadmap for achieving this goal, outlining steps towards a future where plastic waste becomes a resource, not a burden.
