The proposed ban on single-use plastics in Nigeria has raised concern within the Manufacturing sector, with the Manufacturers Association of Nigeria (MAN) voicing solid objections. This opposition is the worry that the ban could have effects, especially for small and medium-scale enterprises (SMEs), which are often the most vulnerable to sudden regulatory changes. As MAN states, this change may force businesses, especially those with limited financial budgets, to implement expensive adjustments that might jeopardise their survival.
For many businesses, single-use plastics are integral to their operations, particularly in packaging, consumer goods, food and beverage, and healthcare. These industries benefit from plastics due to their low cost, adaptability, and simple manufacturing processes. A rapid change from this material would require significant changes to operations, which could be expensive. Many companies, particularly smaller and medium-sized enterprises, do not possess the financial capability to handle such expenses without experiencing disruptions. Furthermore, companies will likely encounter the challenge of sourcing viable replacements for the material.
Shifting to sustainable options demands a review of manufacturing methods.
Discovering and producing these alternatives is complex and costly. Investing in research and development to create sustainable options demands considerable funding, which can pose difficulties for smaller enterprises that lack the financial capacity to support such projects. In addition to the expenses associated with research, new equipment, adjustments to current facilities, and additional staff training are required, each with its financial consequences. For businesses that depend on disposable plastics, shifting to sustainable options goes beyond merely selecting a different material; it requires a thorough reevaluation of their manufacturing methods.
Many companies would have to redesign their products to accommodate the new substances, necessitating time, innovation, and specialised expertise. Given these difficulties, prohibiting the old materials might cause interruptions in manufacturing processes, impacting supply chains widely. As a result, the financial burden may be increased by the challenges associated with understanding and following the legal and administrative obligations linked to enforcing such a prohibition. Companies would need to adhere to updated regulations, potentially involving strict guidelines regarding alternative materials, waste management, and other related environmental factors. Inability to comply with these requirements might lead to fines, further adding already challenged businesses.
Companies may risk closure due to the high costs of sustainable materials.
However, for small enterprises, the danger of failing to comply may determine whether they thrive or go out of business. Shifting to different materials presents enduring financial hurdles. While sustainable options benefit the environment, they often carry a higher price tag than plastics. The rise in the costs of raw materials will probably filter through the supply chain, leading to higher prices for consumers. This situation may result in a drop in demand for specific items, further affecting company profits. For small and medium-sized enterprises, the overall impact of these challenges could be damaging.
Furthermore, many may be forced to cut jobs or close entirely without the financial reserves to weather these storms. At the same time, preparing staff to handle new equipment and materials would represent another considerable cost for companies. Adopting updated technologies or manufacturing methods would demand an Investment in human resources. Existing employees may need to be retrained, and some positions might necessitate recruits to maintain efficient operations. This would further increase an already challenging situation.
Related Article: Key tactics to stabilize manufacturing sector
Lastly, the intent behind the suggestion is commendable, yet the potential economic fallout cannot be ignored. Shifting towards alternative materials will take time, financial investment, and major operational changes for companies. Small and medium-sized enterprises encounter a tough challenge, as their restricted resources may limit their ability to meet the new compliance demands. For many, the high costs associated with this shift could prove unsustainable, raising the risk of widespread business closures and job losses. As the debate over the ban continues, it remains to be seen how the government will balance environmental priorities with the need to support the country’s struggling manufacturing sector.