MAN: Proposed Ban on Single Use Plastic Threatens SME Manufacturers with Closures

Dike Onwuamaeze

As experts lament that the current economic reforms are taking a toll on the Nigerian industrial sector, the Manufacturers Association of Nigeria (MAN) has raised concern that the proposed nationwide ban on single-use plastics would lead to closures of many small and medium manufacturing enterprises and undoubtedly have telling impacts on the operational landscape for businesses across diverse sectors.

MAN expressed this concern yesterday in a statement titled, “MAN Raises Concerns on Proposed Ban on Single-Use Plastics,” which called on government to provide technical assistance and capacity-building support to businesses, particularly SMEs, to help them adapt to the new regulatory environment.

It added: “Small and Medium Scale Enterprises within the plastics industry are particularly vulnerable to the impacts of the ban. These businesses often have limited resources to invest in new technologies or retool their operations.

“Consequently, they may face significant challenges in adapting to the new regulatory environment.

“The closure of SMEs can have far-reaching consequences for local economies, as they contribute to job creation, tax revenue, and supply chain stability.

“Small and medium scale enterprises within the manufacturing sector are particularly vulnerable due to their limited resources and capacity to adapt to rapid regulatory changes.”

MAN further stated that the number of businesses that would be affected by the proposed ban on single-use plastics would be determined by the scope of the policy.

It said, “sectors such as packaging, consumer goods, food and beverage, and healthcare are expected to experience significant disruptions.”

MAN added that the proposed ban would have ripple effects on other industries such as the logistics and transportation sectors that might face challenges in handling and transporting alternative packaging materials.

It added that the waste management industry would experience changes in waste composition and recycling processes while the retail sector would need to modify product offerings and packaging to comply with the ban.

It said: “The impending ban on single-use plastics will necessitate significant operational overhauls for companies within this sector.

“Manufacturers will be compelled to reconfigure their production processes to align with the new regulatory landscape.

“This transition will involve substantial investments in research and development to identify and adopt suitable alternative materials.

“Acquiring new machinery and equipment, as well as modifying existing infrastructure, will be essential to accommodate the production of these alternative products.”

MAN averred that the implementation of a single-use plastics ban was likely to result in job losses within industries heavily reliant on the production and distribution of these products.

According to MAN, workers employed in the manufacturing, packaging, and sales of single-use plastics face the risk of unemployment as companies adapt to the new regulatory landscape.

Also “factories that are unable to transition to alternative materials or absorb the associated costs may be forced to cease operations, leading to job losses and economic disruptions in affected regions,” it said.    

It added that the transition to alternative materials has substantial financial implications as businesses would incur significant costs for new technology, employees training, and potentially higher-priced raw materials.

It pointed out that redesigning products to comply with the new regulations was time-consuming and costly endeavour.

“Moreover, navigating the complex legal and administrative landscape associated with the ban can add to operational burdens. Non-compliance also carries the risk of substantial penalties, further exacerbating financial challenges,” it added.

The manufacturers’ association, therefore, suggested that a comprehensive and strategic approach would be necessary in order to achieve a successful transition.

It said the government must play a proactive role in facilitating a smooth transition for businesses and the general public.

“Establishing a robust recycling infrastructure is paramount. This involves the nationwide deployment of recycling collection sites, particularly in industrial clusters where plastic waste is concentrated. 

“Additionally, the government should provide technical assistance and capacity-building support to businesses, particularly SMEs, to help them adapt to the new regulatory environment. This includes offering training on sustainable packaging design and waste management practices. 

“Ultimately, the transition to a single-use plastics-free future requires a holistic approach that encompasses innovation, investment, consumer education, and government support. By embracing these strategies, businesses can not only comply with regulations but also position themselves as leaders in sustainability.

“There is clearly the need for government support and a phased implementation to allow businesses sufficient time to adapt and mitigate disruptions. 

“In this regards, adequate incentive should be given to offset the costs of adopting alternative materials, including tax breaks to encourage investment in sustainable technologies, and comprehensive training programmes to equip the workforce with the necessary skills,” MAN said.