The Lagos State Government’s announcement of a plan to ban the circulation of single-use plastics (SUPs), such as PET bottles and sachet water, starting in January 2025 has sparked discussions about its impact on businesses and the economy.
This measure is understood to be part of the state’s broader strategy to combat the mounting plastic waste problem that has clogged drainage systems and contributed to environmental degradation.
At the stakeholders’ workshop held at the Manufacturers Association of Nigeria (MAN) House in Ikeja, Lagos, representatives from both the private sector and the government gathered to discuss the potential impacts of the ban. Tokunbo Wahab, Commissioner for the Environment and Water Resources, who was represented by his Special Adviser on The Environment, Olakunle Rotimi-Akodu, explained that the policy is part of broader efforts to manage plastic waste sustainably and ensure a healthy environment for Lagosians.
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“It has become a highly visible part of the waste stream, PET, Styrofoam, and nylon for sachet water, popularly called “pure water” commonly being used for water and beverages, take away plates and cups, carrier bags, among others.
“This development is posing environmental challenges ranging from Ecosystems degradation, Drainage clogging and flooding, Lagoon and Ocean debris with attendant harm to human resulting in high socio-economic impacts on the State,” he said.
Wahab outlined that the SUP ban would be backed by appropriate legal frameworks and an enabling law. He disclosed that Lagos currently generates around 13,000 tonnes of waste monthly, with plastics accounting for over 60% of the waste.
The proposed ban builds on earlier measures taken in January 2024, when the state government prohibited the use of styrofoam in all government establishments and throughout the metropolis due to the rising prevalence of plastic waste.
However, the move has also revived concerns about Nigeria’s long-standing reliance on bans as a solution to complex challenges, a strategy that, in the past, has resulted in the collapse of industries and severe economic repercussions.
Nigeria’s governments, both at the federal and state levels, have historically turned to outright bans as a quick fix for various problems. While these measures are often introduced with the aim of addressing pressing issues—ranging from environmental hazards to public safety—they have also frequently led to unintended consequences.
One of the most glaring examples of this approach is the 2020 motorcycle (popularly known as “okada”) ban in Lagos. This policy not only targeted informal motorcycle operators but also brought down burgeoning tech-driven motorbike ride-hailing startups like Gokada, Max.ng, and ORide.
The okada ban, introduced with the intent to improve road safety and reduce traffic congestion, essentially wiped out a nascent industry that had attracted millions of dollars in foreign investment.
Gokada, for instance, had raised $5.3 million in funding and was poised to become a major player in Nigeria’s transportation ecosystem. However, the blanket ban left these companies struggling to pivot their business models or face collapse, resulting in massive job losses and the stifling of innovation in an industry that held great promise for urban mobility.
Against this historical backdrop, stakeholders in the plastics industry are now raising concerns regarding the looming 2025 ban on SUPs. While the environmental benefits of curbing plastic waste are clear, many fear that an outright ban, without sufficient support for businesses to transition to alternative materials, could lead to the collapse of key sectors and further exacerbate the economic challenges facing Nigeria.
In light of these concerns, stakeholders in the water packaging and plastic manufacturing sectors are urging the Lagos State Government to reconsider the implementation strategy for the SUP ban. They are calling for a phased approach, which they argue would allow businesses enough time to transition to eco-friendly alternatives and prevent the severe economic shocks that could arise from a sudden enforcement of the ban.
Mosaku Ololade, chairperson of the Lagos chapter of the Association for Table Water Producers of Nigeria (ATWAP), reiterated the need for a phased implementation.
“We have over 2,000 members in Lagos alone, with over 10,000 workers. We implore the government to implement the ban in phases, allowing our members ample opportunity for compliance,” Ololade stated.
Economic Implications of the SUP Ban
Experts have warned that the impending SUP ban in Lagos carries significant economic implications, particularly for the small and medium-sized enterprises (SMEs) involved in plastic manufacturing and water packaging. Many of these businesses operate in the informal sector, providing livelihoods for thousands of Nigerians. Business leaders warn that an abrupt enforcement of the ban could lead to the collapse of these businesses, with ripple effects across the supply chain, from plastic manufacturers to distributors and retailers.
In addition to job losses, they also pointed out that the sudden elimination of single-use plastics could lead to supply chain disruptions, particularly in the food and beverage industry, where plastic packaging plays a critical role in product distribution and shelf life. Without viable, cost-effective alternatives, businesses may face increased operational costs, which could ultimately be passed on to consumers in the form of higher prices.
Policymakers Deserve Punishment for Harmful Policies
The Manufacturers Association of Nigeria (MAN) recently warned against policies that could be detrimental to business operations, particularly those that are introduced without adequate consultation or a clear transition plan. The Director-General of MAN, Segun Ajayi-Kadir, has been vocal about the need to hold policymakers accountable for enacting what he calls “business-killing policies.”
Ajayi-Kadir argues that policies like the SUP ban, while well-intentioned, have the potential to cripple entire industries if they are not properly executed. In a recent address, he called for punitive measures against policymakers who introduce and enforce regulations that result in the collapse of industries or significant job losses.
“There must be consequences for government officials who make policies that ruin businesses,” Ajayi-Kadir stressed. “I mean, you make a policy today, it becomes a disaster for industry, and government simply changes it, and you walk away. We don’t have this luxury in the private sector. If you make a mistake, your business is gone, and you could distrain your property. So, I think we need to see that movement also on the part of government.”
His comments reflect a growing frustration among Nigerian businesses, which have often borne the brunt of abrupt regulatory changes. The collapse of the motorbike ride-hailing industry following the 2020 okada ban is one example, adding to numerous other instances where policy decisions have led to the demise of promising sectors.