Green tax will raise prices of goods, says NCIC

The Nigeria Climate Innovation Centre, a global network of the World Bank’s Community Innovation Centres and a member of the Climate Bus Innovation Network, has said that the proposed 10 per cent green tax on single-use plastics in Nigeria would affect production and consumption through increased pricing to consumers and households.

In a statement, the centre explained 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.

It 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 new report titled ‘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 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.

The NCIC Chief Operating Officer, Adamu Garba, who unveiled the report to the media in Lagos, said plastic waste had become a critical environmental concern in Nigeria, Africa’s most populous country.

He added that rapid population growth and urbanisation had 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.

“NIC proposed a circular economy model that prioritises resource efficiency, reuse, and recycling,” he noted.

This approach, according to Garba, focuses on three pillars: designing products for recyclability, establishing efficient collection and recycling infrastructure and driving markets for recycled materials.

According to Garba, by implementing these three pillars, the NCIC’s circular economy model offers a holistic approach to waste management in Nigeria.

He added, “It addresses the environmental concerns associated with plastic pollution and 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.”

Garba declared that the NCIC’s proposed model took a holistic approach, focusing on three key areas.

He explained, “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 emphasises 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.”

The NCIC estimated that for every 5,000 tonnes of plastic waste, 1,500 jobs could be created from such waste picking to aggregation, sorting, and processing, among other logistics jobs, and the generation Nigerian plastic recycling market is forecasted to reach 2.47 million tonnes by 2030.