Lagos plastic ban will impose financial burden on SMEs —Trade Council

The U.S.-Nigeria Trade Council USA has said that the sudden prohibition of single-use plastic containers by the Lagos State Government will place a huge financial burden on Small and Medium Scale Enterprises (SMEs) within the state.

The President of the council, Mr. Titus Olowokere, disclosed this in a statement issued to newsmen in Lagos on Tuesday.

Olowokere appealed to the government, urging it to evaluate the ban’s economic consequences carefully.

He 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 the council 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.

READ ALSO: Lagos announces ban on usage of styro foams and other single use plastics

“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,” Olowokere said.

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

Advertisement

According to Olowokere, this will promote responsible consumer behavior 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.

READ ALSO: Moghalu backs planned relocation of CBN’s departments to Lagos

In addition, 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.

Earlier on Sunday, January 21, the Lagos State Government announced the banning of the usage and distribution of single-use plastics, especially non-biodegradable Styrofoam across the state.

This disclosure is contained in a post by the Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab, on his official X (formerly Twitter) account.

The commissioner pointed out that, despite the frequent cleaning and evacuation of drains with substantial resources, the state’s drainage channels are consistently blocked by Styrofoam due to its widespread distribution and careless usage.