Breaking the Cycle: Shifting Nigeria's Economy from Linear to Circular for Sustainable Growth and Prosperity
In today’s globalized world, many economies use a linear model, a cradle-to-grave concept, where resources are taken, made into products, and then disposed of. While this model has boosted economic growth, it has also caused environmental damage, used up resources, and made economies more vulnerable. This has cost Nigeria around 2 trillion Naira per year in missed opportunities and potential income.
The circular economy provides a more sustainable and resilient option. It aims to keep products and materials in use for as long as possible by repairing, reusing, and recycling them. This helps minimize waste and make the most of resources.
Nigeria, like many other countries, is struggling with the effects of a linear economic model. The country depends too much on imports, the manufacturing industry is declining, and waste disposal is harming the environment. The textile industry used to do well, but now it’s struggling, with closed factories and lost jobs. Big manufacturing companies like Dunlop and Michelin have either moved away or closed down, leaving behind empty buildings that have been repurposed as places of worship. This decline shows how we’ve missed chances and made ourselves vulnerable with the linear model, leading to an estimated 2 trillion Naira lost every year.
However, many now see that embracing a circular economy could be the key to unlocking Nigeria’s economic potential and promoting sustainable growth. A circular mindset in manufacturing, where products are designed with their end-of-life in mind, a cradle-to-cradle concept, holds the key to revitalizing industries and creating a more resilient economy. This approach encourages investment in innovative technologies and processes that promote repair, reuse, and recycling, creating a closed-loop system that minimizes waste and maximizes resource efficiency.
Embracing a circular economy has many benefits. Firstly, it would boost Nigeria’s manufacturing sector, creating jobs and advancing technology. This would provide the nation’s youth with employment opportunities and steer them away from fraudulent activities.
Moreover, utilizing a circular economy in Nigeria would improve the country’s ability to rely on itself and adapt to challenges. This would involve reducing the need for imports and encouraging local production, making the country less at risk of changes in global markets and disruptions in supply chains. As a result, Nigeria could potentially save a significant portion of the estimated annual loss of 2 trillion Naira.
The case of the Nigerian National Petroleum Corporation (NNPC) serves as a clear example of missed opportunities resulting from adherence to outdated practices. Instead of embracing investment in local refineries and new technology, NNPC has opted for the easier route of selling crude oil abroad and importing refined products. This decision hinders Nigeria from maximizing its revenue potential and creating employment opportunities, while also perpetuating the country’s reliance on foreign markets, ultimately leading to continued economic setbacks.