As the global community intensifies efforts to reduce plastic pollution, fresh controversy is brewing over the adoption of plastic credit schemes, a market-based solution being pushed by some international institutions and multinational corporations.
Meanwhile, Nigeria is advancing its own policies to tackle the plastic crisis through a homegrown approach.
Each year, the world produces over 400 million tonnes of plastic waste, with less than 10 percent effectively recycled.
The United Nations has been holding talks since 2022 aimed at producing a global treaty on plastic pollution, but progress has been slowed by disputes over whether to introduce limits on plastic production.
Oil-producing countries, whose economies are heavily dependent on fossil fuel-derived plastics, have been accused of stalling the negotiations.
This week in Switzerland, delegates are once again meeting to break the deadlock. However, many observers believe any agreement may take years to fully implement.
As treaty talks stall, international institutions like the World Bank are turning to alternative solutions such as plastic offsetting, a system modeled after carbon credits.
Under this system, companies pay to collect and manage plastic waste elsewhere in exchange for “plastic credits,” allowing them to label their products or operations as plastic neutral.
The World Bank has backed the idea, launching a $100 million bond to support plastic offsetting projects in Ghana and Indonesia, while describing it as a “win-win” for the environment and local communities.
However, critics argue the model may be doing more harm than good.
A recent investigation revealed that most plastic collected under such schemes is burned in cement factories, a process called “co-processing”, rather than being recycled, raising concerns over air pollution and carbon emissions.
Despite these concerns, plastic credits are gaining momentum globally, with oil giants like ExxonMobil, and plastic manufacturers like Dow and LyondellBasell, backing such efforts through lobbying groups.
Nigeria’s Position: Local Policy Over Global Offsets
Back home, Nigeria has taken a more direct route, focusing on regulation and producer responsibility rather than relying on credit-based offsets.
In 2020, the National Environmental Standards and Regulations Enforcement Agency (NESREA) launched the Extended Producer Responsibility (EPR) programme in partnership with the Food and Beverage Recycling Alliance (FBRA).
The policy places the responsibility for plastic waste management squarely on the producers of plastic products, urging them to develop take-back systems and invest in recycling.
In addition, states like Lagos, Rivers, and the FCT have intensified efforts to ban single-use plastics in government offices and promote reusable alternatives.
Environmental experts say these approaches show more promise than plastic credits, as they encourage actual reduction in production and consumption, rather than paying to clean up after the fact.
“A False Solution for Africa” – Local Voices Speak
Some experts warn that plastic credits, while attractive on paper, are not suited to countries like Nigeria, where informal waste pickers and small-scale recyclers form the backbone of the recycling economy.
Professor Anil Verma, who studies informal labour in waste management, describes plastic offsetting as a “greenwashing game” that allows polluters to keep producing plastic while claiming environmental responsibility.
In Nigeria’s informal sector, people like Abdullahi Hamisu, a plastic scavenger in Lagos, depend on collecting and selling plastic waste to survive. He says global funding should be directed toward empowering local recyclers, rather than foreign corporations.
“If they really want to help, let them build more plants here and reward us better,” he told Radio Nigeria. “Not come and say they cleaned plastic in Ghana and call us plastic-neutral.”
Major multinationals are beginning to back away from plastic credit schemes.
According to report, Nestlé, Coca-Cola, and Unilever have all expressed doubts about the effectiveness of plastic offsetting and now favour legally enforced producer responsibility initiatives — similar to what Nigeria is implementing through NESREA and the Lagos Waste Management Authority (LAWMA).
Environmentalists in Nigeria say the country should stay the course by strengthening enforcement of its EPR framework and supporting local recycling initiatives.
As the UN continues its treaty talks, the world will be watching to see whether nations choose quick-fix market solutions or commit to the tougher but more sustainable path, like Nigeria’s style of reducing plastic at its source.