The proposed national ban on single-use plastics has drawn criticism from the Manufacturers Association of Nigeria (MAN), which warns that many small businesses could face bankruptcy as a result of the prohibition.
Segun Ajayi-Kadir, the Director General of MAN, conveyed in a statement the worries of manufacturers over the possible economic consequences of the planned prohibition.
He added that the switch to alternative materials has huge financial ramifications and that the prohibition will force major operational overhauls for the affected enterprises. In his own words: “There is little doubt that the planned national ban on single-use plastics would have an influence on how firms in a variety of sectors operate.
Production processes, supply networks, and consumer behaviour will all be drastically changed for manufacturers, distributors/retailers, and consumers who are affected.
This change in regulation will lead to large expenditures in research and development to find, create, and employ workable substitutes for single-use plastics. Ajayi-Kadir commented, “The impending ban on single-use plastics will necessitate significant operational overhauls for companies within this sector.” regarding the impact of the ban on manufacturing companies.
It will be necessary for manufacturers to reorganise their manufacturing procedures in order to comply with the new regulatory environment.
Considerable research and development expenditures will be necessary for this shift in order to find and use appropriate substitute materials. It will be necessary to upgrade current infrastructure and purchase new machinery and equipment in order to support the manufacturing of these substitute goods.
“There will likely be major disruptions in the food and beverage, consumer goods, packaging, and healthcare sectors. Small and Medium-Sized Enterprises (SMEs) in the manufacturing sector are especially susceptible because of their restricted funding and inability to quickly adjust to changing regulations.
According to the MAN DG, switching to substitute materials will have a significant financial impact. Companies will have to pay a lot of money for employee training, new technology, and possibly more expensive raw materials. Product redesigning to meet the new rules is an expensive and time-consuming process.
Furthermore, negotiating the ban’s complicated administrative and regulatory environment may make operations more difficult. The possibility of significant fines for non-compliance further exacerbates financial difficulties, he continued.
