USTC Cautions Lagos on Impact of Single-Use Plastic Ban on SMEs

January 24, 2024
Single-Use Plastic

By Adedapo Adesanya

The United States-Nigeria Trade Council (USTC)  has said that the sudden prohibition of single-use plastic containers by the Lagos State Government would have an impact on the state’s economy, as it will become a huge financial burden on Small and Medium Scale Enterprises (SMEs).

The President of the council, Mr Titus Olowookere, called the attention of the state government to this in a statement in Lagos on Tuesday, appealing to the administration of Mr Babajide Sanwo-Olu to evaluate the ban’s economic consequences carefully.

On Sunday, the Lagos State Government suddenly announced a ban on single-plastic use with immediate effect.

This move, according to the critics, did not consider dialogue with businesses and other stakeholders before it was implemented.

Mr Olowookere also stressed the need to collaborate with stakeholders to formulate sustainable waste management strategies and foster entrepreneurship, economic advancement, and environmental sustainability.

He mentioned that while USTC acknowledges the importance of environmental conservation and sustainability, the sudden ban on single-use plastics is considered potentially problematic to small businesses.

“We firmly believe that this ban will have detrimental effects on Lagos state economy and exacerbate the unemployment crisis.

“We urge the government to reconsider this decision and take into account alternative solutions that promote entrepreneurship, sustainable consumption, and waste management,

“This ban directly affects not only industry workers but also countless small-scale entrepreneurs who depend on the plastic sector for their livelihoods.

“Furthermore, from an economic standpoint, the ban imposes an enormous financial burden on businesses, particularly Small and Medium-sized Enterprises (SMEs), as they are forced to find alternatives or invest in costly infrastructure to comply with the regulation.

“This additional expenditure, coupled with the already challenging business environment, will impede growth and hinder economic development, not only in Lagos but in Nigeria as a country,” he said.

The council advised that the Lagos State government encourage and promote effective waste management as a credible alternative to the ban.

According to Mr Olowookere, this will promote responsible consumer behaviour and support the transition towards eco-friendly alternatives.

He suggested that the state explore collaboration with industry stakeholders to foster the creation and acceptance of eco-friendly packaging alternatives, including materials that are biodegradable or compostable.

he expressed the council’s support for investing in recycling infrastructure.

“The establishment and expansion of recycling facilities will create new job opportunities and support the growth of a sustainable recycling industry in Nigeria.

“USTC advocates for collaboration between the Lagos State government, private sector entities, and civil society organizations to develop and implement waste management projects that drive entrepreneurship and job creation,” he added.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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