Adopting a Circular Economy for Economic Growth and Sustainability in Nigeria

The United Nations Conference on Trade and Development (UNCTAD) defines a circular economy as an economic model focusing on closing material loops through repair, reuse, recycling, refurbishment and remanufacturing of end-of-life products. Estimates suggest that only 8.6% of the world’s economy is circular. Countries like the Netherlands are leading the pack in adopting circularity as an economic style. The Dutch government has an ambitious project to become a country 100% based on a circular economy by 2050. Other countries of note are Japan, China and Chile.

Nigeria faces enormous socio-economic challenges. Recent statistics by the World Bank state that 4 in 10 Nigerians live below the poverty line. Nigeria’s National Bureau of Statistics, in 2022, showed that 133 million Nigerians are multi-dimensional poor. This statistic reflects Nigeria’s economic state and further reiterates the need to explore untapped opportunities with the potential to lift Nigeria out of poverty.

Over the years, the circular economy has gained prominence, given its potential to offer helpful solutions to pressing environmental and economic challenges. This concept is no silver bullet but is a viable alternative to solving Nigeria’s economic and sustainability challenges. It is also essential to note the global concern about climate change and its adverse environmental and health effects. Since waste is a core contributor to carbon emissions, adopting a circular economy in Nigeria is crucial for managing waste, checking carbon emissions and creating a sustainable economic system. This assertion is supported by a European Environmental Agency report which states that transforming to a circular economy can reduce carbon emissions.

Despite the wealth creation potential and sustainable circular economy methods, Nigeria still wallows in the grimes of a linear economy. This linear economic model is centred around a “take-make-dispose approach, where products are used and disposed of to waste sites. The United Nations predicts India, China, and Nigeria will house half the world’s population by 2050. It is no doubt a large population equals humongous amounts of waste.

Exploring circular economy principles in critical sectors of the Nigerian economy, such as agriculture, energy, and manufacturing, principally contribute to reducing waste and air pollution and decreasing carbon emissions. For instance, Fossil fuel generator components can be reused or recycled in the energy sector, particularly in renewable energy systems. The energy sector’s circularity opens secondary markets for the refurbishment and trading of used components. Thus creating sustainable businesses and local jobs that address Nigeria’s unemployment problems.

Waste can be transformed into bio-products such as fertilizers, energy generation materials and compounds in the agricultural sector. Converting agricultural waste into new products introduces the principles of reuse, repair, and recycling. As a  result, local economies can generate an additional income stream and, in the long term, reduce environmental damage. Likewise, in manufacturing, implementing practices like product life extension, eco-friendly packaging, and green recycling can curtail waste generation and create economic opportunities.

Efforts are in motion towards achieving a circular economy in Nigeria. Recent efforts include the establishment of Nigeria’s Circular Economy Working Group. (NCEWG) The main objective of this working group is to support the inclusive green growth of the Nigerian economy. However, many more coherent policies, incentives, meaningful action, awareness and innovation are required. Transitioning to a circular economy is just as crucial for Nigeria. Due to the dwindling revenue, the country’s growing energy needs and the geostrategic importance of responding to climate change, this transition could offer solutions.