Proposed Green Tax on Plastics in Nigeria Could Hike Prices, Warns Climate Innovation Centre
The Nigeria Climate Innovation Centre (NCIC), part of the World Bank’s Community Innovation Centres and a member of the Climate Bus Innovation Network, has issued a stark warning about the proposed 10 per cent green tax on single-use plastics in Nigeria. The NCIC cautioned that this tax could lead to increased prices for consumers and households, affecting both production and consumption patterns.
In a detailed statement, the centre highlighted green taxation as a governmental policy tool designed to foster sustainable behaviour by levying taxes and fees on environmentally damaging activities. However, the NCIC suggested that adopting circular economy principles would be a more effective strategy. Such an approach could bolster economic resilience, reduce reliance on finite resources, and encourage sustainable consumption and production patterns across the nation.
The NCIC’s new report, titled “Positioning Plastic Waste Recycling as an Inclusive Catalyst for Unlocking a Sustainable Circular Economy in Nigeria,” promotes a shift towards a circular economy as a superior alternative to the government’s proposed green tax model for single-use plastics. The report delves into the potential benefits of a circular economy for managing plastic waste in Nigeria, underscoring the limitations of green taxation while advocating for a more comprehensive and transformative solution.
Adamu Garba, the NCIC’s Chief Operating Officer, who unveiled the report in Lagos, emphasised the urgency of addressing plastic waste, describing it as a critical environmental issue exacerbated by rapid population growth and urbanisation. Garba pointed out that plastic waste poses significant threats to public health, ecosystems, and the general well-being of Nigerians.
“The traditional approach of green taxes, which relies on financial disincentives to mitigate environmentally harmful practices, is gaining traction. However, the NCIC argues that while green taxes offer a regulatory mechanism, they also have significant limitations,” Garba explained. “We propose a circular economy model that prioritises resource efficiency, reuse, and recycling.”
Garba highlighted three key pillars of this approach: designing products for recyclability, establishing efficient collection and recycling infrastructure, and driving markets for recycled materials. This model, he asserted, addresses environmental concerns related to plastic pollution while unlocking economic opportunities through job creation in the waste management sector.
The NCIC estimates that for every 5,000 tonnes of plastic waste, 1,500 jobs could be generated, spanning activities from waste picking to aggregation, sorting, and processing. Additionally, the Nigerian plastic recycling market is projected to reach 2.47 million tonnes by 2030, underscoring the substantial economic potential of a circular economy.
Garba concluded by stressing the holistic nature of the NCIC’s proposed model, which includes designing products with recyclability in mind and building robust collection and recycling infrastructure. By implementing these measures, Nigeria can foster a more sustainable and resource-efficient future, addressing the dual challenges of plastic pollution and economic development.
