Manufacturers warn of massive job losses

The Manufacturers Association of Nigeria (MAN) has said the proposed nationwide ban on single-use plastics will likely lead to job losses in industries that heavily rely on the production and distribution of these products.

The Federal Government has announced a ban on single-use plastics across all its Ministries, Departments and Agencies (MDAs).

Speaking about this, MAN CEO Segun Ajayi-Kadir stated that this will undoubtedly have an impact on the operational activities of companies in various sectors.

“Concerned manufacturers, distributors/retailers and consumers will need to significantly change their production processes, supply chains and consumer behaviour. This regulatory change will trigger significant investment in research and development to identify, develop and implement viable alternatives to single-use plastics.

“Companies will need to explore sustainable materials, redesign packaging formats and potentially invest in new manufacturing equipment. Supply chains will also undergo a transformation as companies seek out new suppliers of sustainable materials, explore recycling and reuse opportunities and build relationships with waste management facilities,” he said.

According to Ajayi-Kadir, workers employed in the production, packaging and sale of single-use plastics are at risk of unemployment as companies have to adapt to new regulations.

“Factories that are unable to switch to alternative materials or cover the costs involved could be forced to cease operations, leading to job losses and economic disruption in affected regions.

“Small and medium-sized enterprises operating in the plastics industry are particularly vulnerable to the effects of the ban.

These companies often have limited resources that they can devote to investing in new technologies or modernizing their operations.

“As a result, they may face significant challenges in adapting to the new regulatory environment. The closure of SMEs could have far-reaching consequences for local economies, as they contribute to job creation, tax revenues and supply chain stability.”

He added that “the number of businesses affected by a ban on single-use plastics will depend on the scope of the policy. Sectors such as packaging, consumer goods, food and beverage, and healthcare are expected to experience significant disruption. SMEs in the manufacturing sector are particularly vulnerable due to limited resources and the ability to adapt to rapid regulatory changes.

“Beyond these core sectors, the ban will have knock-on effects on other industries. For example, the logistics and transportation sectors may face challenges in handling and transporting alternative packaging materials. The waste management industry will experience changes in waste composition and recycling processes.”

MAN advocated for the appropriate engagement of government representatives and stakeholders and for joint efforts to ultimately eliminate single-use plastics.

Ajayi-Kadir said that “appropriate incentives must be provided to offset the costs of adopting alternative materials, including tax breaks to encourage investment in sustainable technologies and comprehensive training programmes to equip workers with the necessary skills.”

He proposed “the creation of a special fund to support research and development of sustainable packaging solutions. This would encourage innovation and create new business opportunities in the manufacturing sector.”