Built Environment Professionals and Stakeholders Biggest Challenges in Circular Economy in Nigeria

Circular economy is the other name of World Economic Forum’s mission, “Eliminating waste and promoting the safe use of natural resources”.

Circular economy is an inclusive process which aims to redesign and redevelop the idea of the traditional “take-make-dispose” approach. It ensures natural resources are used at the optimum capacity, all at the rate of continuous recycling and better usage of resources through innovative economic business models.

But it doesn’t come easy. There are many obstacles that hinder industries from adopting circular economy in their business plans. These are the biggest challenges industries should look at in 2025.

LACK OF EFFICIENT RECYCLING TECHNOLOGIES

Polymers like PET and PPE have emerged deeply into our daily lives. Such wastes require proper attention and management. Organizations are struggling to recycle them since there is no efficient recycling technology, as each category of waste requires research for a separate potential recycling technology. Most start-ups are in nascent stage and are finding it tough to scale up with the rate of material usage.

FEAR OF LOSING RECURRENT CUSTOMERS

New market opportunities in packaging industries are heavily dependent on what end-use consumers think. Consumers are reluctant to adapt to change due to changes in weight, aesthetics and more. Educating the consumer before releasing a new product ensures they are aware of their disposing capacity for sustainable development.

NO PROPER IMPLEMENTATION OF LOCALIZED REGULATIONS

Eco-friendly waste management is at the centre of circular economy, and it starts with local governance. Local governments play a vital role in accelerating circular economy, as they manage local infrastructure and services. However, local governments are failing to strictly implement localized regulations, and loopholes are found to extract natural resources at an alarming rate.

NO PROPER UNDERSTANDING OF EMERGING BUSINESS MODELS

Reuse is one of the key concepts of circular economy, but it has not been applied in many industries. Old business models of “profit-profit-profit” do not seem viable. We are in a give, take, reuse and recycle stage. Companies should perform detailed market analysis to understand emerging business models and how consumers are responding to the changes.

HIGH INVESTMENT COSTS

Current supply chain infrastructure is not well-equipped for recycling. Many firms are reluctant to partner with recycling organizations due to high investment costs. But this needs to change: there will only be a limited number of resources left to make new products, and recycled products will become the new normal in the industrial supply chain.

CASE STUDY: TORAY INDUSTRIES

As part of its drive to become carbon neutral by 2050, Japan-based Toray Industries developed the world’s first 100% bio-based adipic acid from sugars derived from inedible biomass — a precursor of Nylon 66 that eliminates the greenhouse gas produced during conventional synthesis.

STRUCTURED MARKET STRATEGY, BACKED WITH DATA, IS THE KEY

Data and its importance have only grown in the past few years. Circular economy is the future, and to be future-ready, organizations require much more than traditional manual market landscapes.

For more information or to explore how CIOB NIGERIA HUB can support your profession and businesses, please contact our team: info@ciobnigeriahub.org or call +2347064420135