Tag: plastic

  • How plastic pollution endangers our lives, by expert

    How plastic pollution endangers our lives, by expert

    Margaret Spring is the  chief conservation and science officer at the Monterey Bay Aquarium in Monterey, California.  Ms. Spring, at a briefing attended by United States Bureau Chief OLUKOREDE YISHAU, discusses plastic pollution and efforts to curb it.  Excerpts:

    Increase in plastic production

    Between 1950 and 2019, global plastic production has ballooned from an estimated 2.2 million tons per year to 460 million – metric tons per year – excuse me – million tons per year.  And if industry has their way, it’ll be more like 1.5 billion by 2050, and estimates are that there’ll be a tripling of plastic use by 2060, according to the OECD. 

    One thing you should know is that almost all plastic right now is made from fossil-based petrochemical feedstocks, oil, and natural gas.  If people curb their demand for fossil fuel energy as a result of responding to the climate crisis, the industry is really looking to plastic to keep their profits afloat.  Plastic production leads to plastic waste and inevitably plastic pollution.  We can work on fixing waste management, which right now isn’t able to handle the volume of plastic waste, even in the U.S.  But if we don’t slow plastic production, we can’t expect to keep up. 

    And we have an updated number for plastic waste that goes into the ocean, which is something of great concern to the aquarium – which is still an estimate; it’s based on modeling.  But we’ve been using a conservative estimate of 9 million tons per year, and now it’s up to 12 million, and it’s just going to keep growing.  So this is a problem that every minute that ticks away it gets worse.

    An ocean problem

    So it’s an ocean problem, of course.  Plastic waste is present in almost every marine habitat on Earth, from the ocean surface to deep-sea sediments to the ocean’s vast midwater region.  It’s just not at the surface.  It’s everywhere, including on the bottom, and there’s new scientific information coming out, including from the aquarium on that point.  Sea turtles, marine mammals, seabirds, fish, and other marine life are impacted by plastic by becoming entangled in it or eating it, and there’s a large body of evidence that ingested plastic travels through the food web and ultimately to humans. 

    But of course, it’s becoming clearer that plastic pollution is also an issue of environmental equity.  Low-income communities and communities of color in the U.S. and around the world bear the brunt of plastic pollution from production, waste disposal, use, and incineration.  Plastic pollution also disproportionally impacts people in poorer in countries, communities in the United States, where more plastic waste leaks out into the environment due to insufficient waste collection and management systems, which exacerbates the impacts of climate and other major crises around the world. 

    Sources of plastic

     Most plastic is from fossil sources, as I said, and this has impact not only the environment from extraction all the way through the life cycle of plastic, but on society and the costs that are associated with that – the cleanup cost but also the health cost.  And then the climate impacts, there’s growing evidence that the production of plastic is increasing the greenhouse gas emissions and, of course, that climate impacts are exacerbating the impacts of plastic in these countries that are affected by sea-level rise and other challenges.  And of course, the economy is not going to be able to withstand this.  The cost of cleaning up for governments and for prevention is going to increase the longer we wait. 

    So it’s everyone’s problem, which is why there is a treaty discussion going on right now.  We basically have to start from the beginning to the end, and there’s a couple of studies that I was involved in that will elucidate this.  Human health and equity, as I said before, is a major issue.  Human health hazards are now taking center stage.  There have been a number of reports on that, which I’ll talk about.  And there’s really a lot more scrutiny on toxic chemicals within plastic that is coming to the fore. 

    Impacts on America

    And just to center ourselves where we are, the United States is a part of this problem.  It produces plastic.  We actually generate a lot of waste – probably the most plastic waste.  We actually have probably a more advanced waste management system, but in the end there is still leakage into the environment, which is of concern, and our recycling and disposal infrastructure is not going to be able to bear this.  And of course, we do export waste too and that has changed a little bit because of some changes in China, but essentially we still – there’s just too much for us to manage at this point. 

    So in 2022 and 2023, I was involved in two expert reports.  So one was at the U.S. scale and one was at the global scale, which it will explain how we are approaching the treaty.  In December 2021, the National Academies of Sciences, Engineering, and Medicine released a report on the U.S. role in the global ocean plastic waste crisis, and it was requested by Congress in legislation established in 2020.  I chaired the committee that came out with this report, and it’s made up of experts from all sorts of disciplines.  We spent a year and a half researching this.  What our conclusion was – oops, sorry.  Well, this is one of our conclusions that the U.S. plays a significant role.  Just so you know, it came from that report.  I’m having trouble here, Leah.  Okay. 

    Our top – there was – we found there was no one solution.  Everyone was looking for one solution.  Everyone sees the plastic problem from their perspective.  If you’re a fisherman, you think that we need to clean it up.  If you see it in your neighborhood, you want to have a – have this dealt with and you’re concerned about use of plastic products that are leaching chemicals and what the impacts on your children, you’re going to see it in a different part of this.  But our finding was that there’s no one solution.  Action needs to be made at every stage of the plastic life cycle from production all the way through disposal or leakage into the ocean, which is the ultimate sink for all of this plastic. 

    Recommendations

    Our recommendation was as the U.S. as a key player needed to come up with a systemic federal policy and research strategy quickly.  And so just – and we need to have to address the front end of the problem, which is that’s circled.  What we found was that there was more action at the far end, which was the cleanup which is, of course, the natural reaction, and then we needed look farther up the chain.  We identified also waste reduction as a critical policy, and part of those – and also reduction of plastic products and plastic production. 

    Read Also: Monarch seeks support for Tinubu’s economic polices

    After that – one of the things that this report did not do was look at actual health impacts.  And so we – I also was a member of the Minderoo-Monaco Commission on Plastics and Human Health, which was chaired by Phil Landrigan, a pediatrician, and a number of doctors and health exports were part of it.  And the major finding of that report, which was geared towards the UN treaty, was to look at what was the impact of plastics on human health across the life cycle.

    Global actions

    Taking a step back, in 2022, 175 countries adopted a resolution at the UN Environment Assembly, UNEA, and just after released the U.S. report and before we issued the Minderoo report.  The nations agreed to negotiate this binding agreement, which is very exciting, to end plastic pollution, setting a goal of completing the text by the end of this year. 

    And so when we entered the space of the treaty, I’ve been at all of the meetings so far representing the scientific community through the International Science Council, and we – what was brought to the attention of the negotiators at that first meeting, their findings of the Minderoo-Monaco Commission Report, which were plastic harms human health and the environment; plastic itself causes disease, impairment, and premature mortality at every stage of its life cycle; toxic chemicals added to plastic, routinely detected in people, increases the risk of miscarriage, obesity, cardiovascular disease, and cancers; and health repercussions disproportionately affect vulnerable, low-income, minority communities, particularly children; and the annual costs are astounding.  And I won’t go too far into that, but you can read the report.  Also, plastic production has fueled climate change, so that is another issue of concern in that report.

    And so the solutions offered were to address plastic production, establish health protective standards, improve production practices, improve the recycling and other mechanism, have regulations on hazardous chemicals, and prioritize the protection of human health and the environment, especially the protection of vulnerable and at-risk people.  So at this treaty, all those issues are on the table.  Primary plastic polymers are part of an – a zero draft of the text.  Chemicals and polymers of concern, problematic and avoidable plastics, product design – all of those elements are in the framework for a treaty. 

    The Nairobi meeting

    At our last meeting in Nairobi, there was a delay in taking action to further develop the text.  The text was made longer, and so much – a bit more complicated.  So looking ahead at our next meeting, which is kicking off on April 22nd – we’ll be welcomed by the Canadian Government on Earth Day, and then the negotiations start on the 23rd – there’ll be a lot of attention to the text and trying to get to agreement, because we have that meeting and then one more meeting. 

    And all of these issues are critically important.  The question that will be ahead of us is what can we come to agreement with – on within this time period to be sure we address the whole life cycle of plastic, to address human health and the environment, and make sure the marine environment is protected, and also have a just transition and have enough financing to get this done.  So – and there’s a lot of need for data transparency, tracking, and monitoring. 

    So those are all issues on the table, and there’s a lot of attention being paid to preparing for country positions, and all of us in the civil society and as observers are doing the same.  And so we’re looking forward to seeing how far we can get in this meeting.  And the last meeting will be in Seoul, Korea in the fall, and then ideally the treaty would be signed at an event, the plenipotentiaries meeting next year in 2025. 

    So that’s probably the fastest international treaty agreement timeline I’ve even seen, and so we’re all mobilizing quickly.  So I just wanted to give you a sense of how important this issue is to people here in the United States as well as around the world.  I’ve spoken to many people, and as a representative of the International Science Council we have given presentations to many delegations at this treaty and to answer questions about science, which is so critical.

    The delay in Nairobi

    I don’t know what was going on behind the scenes and among the delegates, but what occurred was that there was expressed a concern by a group of countries saying that they felt that their views were not reflected in the text that was shared and developed by the secretariat of the treaty.  And so each of them had to – brought up a lot of questions about what was in there, and so there was a lot of time spent adding more text and options to each part of the treaty.  So while it started as a – maybe a 30-page document, it’s now a 70-page document, which makes it a bit more complex.  It’s – and so there is – that’s one reason. 

    But also there was not agreement on doing – on performing intercessional work.  Many of the scientific groups and other delegates, who were very concerned that they needed to understand the issues better wanted to proceed with intercessional work, which means special, topical work that would go between that meeting and this coming meeting to help tee up some issues in an official way as part of the official process, and no agreement was made.  So that has left us a little bit behind in developing the information that the delegates need to make decisions. 

    And so that doesn’t mean work isn’t going on, but it’s not going on in the same way that had been anticipated.  And there were contact groups created that were developing those lists of topics that people wanted to understand, like polymers of concern, or problematic plastics, or financing.  All those issues are all being discussed among observers as well as some of – and the delegations, but not as an official stream of work.  So that will put – that’s delaying things a bit.

  • Nigeria’s plastic import may hit 40m tons by 2030

    Nigeria’s plastic import may hit 40m tons by 2030

    Nigeria’s plastic consumption has been projected to reach 40 million tons by 2030, as the country is one of the largest consumers of plastics in Africa, according to the Nigerian Economic Summit Group (NESG).

    The group stated this at a pre- 29th Nigerian Economic Summit (Nes29) webinar with the theme “Waste-to-Wealth: The plastics value chain.”

    The Chairman, Technical Sub-Committee of the #NES29, Mrs Ozofu Ogiemudia, said the country imported 20 million tons of primary plastics and the products between 1996 and 2017.

    She noted that the high volume of plastic use points to the importance of considering the effects it might have on people and the environment.

    In his keynote, the Minister of State for Environment, Dr Iziaq Kunle Salako, said the accumulation of plastic objects, including multilayered packaging, electronics, healthcare, clinical and pharmaceutical sectors dumped after use, has a severe impact on the environment, biodiversity and human health.

    Represented by the Director-General, National Environmental Standards and Regulations Enforcement Agency (NESREA), Prof Aliyu Jauro, he noted that for sustainable development and management of waste to wealth, innovative solutions need to be explored that would help recycle and transform plastics for good use.

    He said improperly disposed plastics clog drainages, leading to floods, contaminating water bodies, and causing threats to wildlife, indicating the importance of recycling.

    He noted the importance of recycling, saying that the gaps in plastic waste control, such as lack of identifiable information on the cost incurred by the government on the collection, sorting, in-house gas emission, waste collection across geo-political zones and cost involved in setting up collection points are hindering Nigeria from fully harnessing the potential of the plastics value chain.

    Read Also: Nigeria loses N10bn annually from unorganised plastic recovery, says Oresanya

    During the panel session, the Director of Corporate Affairs and Sustainability, Nigeria Bottling Company Limited, Mrs Oluwasoromidayo George, said waste disposal had a severe environmental impact, adding that Nigeria could create about 750,000 jobs within a short time to improve the lives of millions of workers in the informal sector by fully harnessing the potential in the plastics value chain.

    Executive Director, Circular Economy Innovation Partnership, Dr Natalie Beinisch, said proper waste disposal was essential to transforming plastic waste to wealth.

    She noted that innovative grassroots programmes could help low and middle-income earners to increase their income through the collection of plastics and transporting to waste centres that provide money or incentives for waste exchange.

    The summit with the theme ‘Pathways for sustainable economic transformation and Inclusion’ would hold between October 23 and 24, 2023 in Abuja.

  • Nigeria loses N10bn annually from unorganised plastic recovery, says Oresanya

    Nigeria loses N10bn annually from unorganised plastic recovery, says Oresanya

    An environmental development expert, and former Commissioner for Environment, Ogun State, Mr Ola Oresanya has said that Nigeria loses N10 billion annually from unorganised and unregulated plastic recovery management systems in the country.

    Oresanya said this at the just concluded fourth edition of Lagos Waste Forum, a high-level citizens forum on waste reduction and management held at NECA House, Alausa, Ikeja, Lagos. The event was put together by SWEEP Foundation.

    The event tagged: ‘Investing in Plastics Recovery Towards a Circular Economy,’ brought together industry players, government representatives, civil society groups, multinationals, International Labor Organisation (ILO), among others. The event also witnessed the award of sustainability to some organisation including:  Trashcon, Recycle Edge, Association of Carton and Waste Recycling Dealers of Nigeria, Association of Scraps and Waste Pickers of Lagos (ASWOL), and others.

    Read Also: Hidden connection between plastics and climate change

    Oresanya lamented that Nigerians were yet to unlock the economic potential in plastic waste recycling.

    According to him, Nigeria generates 12 million tons of plastics every year and one ton of plastics mobbed cost N250 to N300, 000 whereas in the international market, it is been sold at N1.2 million to N1.5 million, stressed there is so much money to be made and employment to be generated if Nigeria can explore new economic model that will unlock its potentials

    He noted that the viability of the plastic recovery is elastic and can accommodate every investor as much as possible.

    He disclosed that Nigeria can make N16 billion annually but in the last two years, it only made an annual income of N6 billion from plastic recycling.

  • Recycling of plastic can create six additional jobs, says ILO

    THE International Labour Organisation (ILO) has said that about six million additional jobs can be created through a sustained recycling of five per cent of plastic, glass, wood pulp, mega, and mineral waste generated annually across the globe.

    The world body also said large amount of uncollected plastic waste are founding their way into the ocean, posing a potential threat to fishes.

    It said unless something is done about it, there may be more plastics in the ocean than fishes by the year 2050.

    In its report, entitled: “World Employment and Social Outlook: Greening with Jobs 2018”, the ILO said waste management and recycling sector has already employed over 500,000 people in Brazil and about the same number of workers in Bangladesh, with majority of them being women.

     

  • Nigeria to save $9 billion for using returnable plastic crates

    Nigeria will save an  estimated $9 billion annually if Returnable Plastic Crates (RPCs) are adopted by farmers for storage and transportation of agricultural produce.

    This position was taken by stakeholders at a workshop organised in Lagos by the Postharvest Loss Alliance for Nutrition (PLAN) Nigeria, an initiative of the Global Alliance for Improved Nutrition (GAIN).

    The workshop was held in collaboration with Rockefeller Foundation Yieldwise Program-Pyxera Global, GEMS4,United States Agency for International Development (USAID) and the Nigeria Agribusiness Group (NABG).

    Senior Project Manager, Postharvest Loss Alliance for Nutrition (PLAN) Nigeria, Augustine Okoruwa, said the workshop’s objective was to enlighten stakeholders on the benefits of using RPCs for the transportation of farm produce and enhance the business opportunities in the agricultural value chain.

    He noted that the adoption of RPCs for storage and transportation of agricultural produce would help to minimise losses and also save costs.

    According to Okoruwa, the motive for the use of RPCs was to replace the worrisome use of raffia baskets, which accounts for more than 45 per cent of food loss, adding that the initiative would give room for exploring workable models, incentives for lending, leasing and owning RPCs.

    He said apart from being hygienic, RPCs will prevent damage and compression. It will also improve fruit ventilation.

    Group Intervention Manager of GEMS4 Richard Ogundele said if the policy is embraced by the farmers and traders, it would guarantee optimum preservation of the produce from the point of production to the market.

    “If we have a policy that talks about food safety and standard, then there will be need for everybody to adopt the use of plastic crates,” Ogundele stressed.

    Speaking on the role of Bank of Industry- Investment and Trust Company Limited in support of the Returnable Plastic Crates, Victoria Madedor, head-agribusiness, assured of the bank’s assistance to reduce the cost of production by the manufacturers.

    She said the bank will support manufacturers of RPCs through funding.

  • Plastic firm’s workers cry out over lack of safety kits

    Plastic firm’s workers cry out over lack of safety kits

    Workers of Celplas Industries Nig Ltd, Isanyindo, Sagamu, Ogun State, a manufacturer of plastic products, have lamented the non-provision of safety kits for them by the management.

    The workers noted that there are no safety measures put in place in the factory to protect them against bodily injury that has become their lot in recent times.

    One of the affected workers, who spoke on the ground of anonymity, said the management had turned a blind eye to their plight despite sustained agitation for better working conditions in terms of adequate provision of safety items.

    “The management is not doing anything to address the lack of safety items that could protect us from dangerous particles coming out of production centre. For example, those of us who work in the stainless plate moulding section are the worst hit; we are usually blackened or darkened by black particles coming out of plates during production.

    “Instead of providing us with safety gear and overall jacket, they continue to be indifferent. No matter how fair-complexioned you may be, you will become black the moment you are posted to my section to work. When many of us who could no longer continue to wait endlessly for the management, we resorted to covering our body with  disused sacks.”

    Another worker, who spoke in confidence with The Nation explained: “I resorted to the use of cellophane or nylon to cover my body and hand. Besides, some of our colleagues have either lost their fingers or vital parts of their bodies as a result of the development; Even though I know that using cellophane is dangerous as it can be suffocating, we have no choice.”

    “A few months ago, a worker in the moldings section lost some of his fingers and he has not been compensated for the permanent injury he suffered. Please, beg our bosses to secure our lives against industrial accidents and health hazards by giving us necessary safety kits,” he added.

    A security man at the entrance of the company turned back our correspondent when he went there to seek the response of the company on the allegations a few days ago.

    “Please go back. The company has been temporarily closed because of workers’ strike,” said a security man who refused to disclose his names.

    However, a top official at the Lagos head office of the company, simply identified as Sikiru, said:” To the best of my knowledge, the company has always held the issue of safety and welfare of its workers paramount. They are insured and some of them who are victims of industrial accidents have been adequately compensated. There are, however, some whose cases are still being treated by our insurers. But I’ll advise you to come see our general manager when he returns from his trip outside the country. He is in a better position to offer a detailed explanation on some of the issues you have raised.”

  • Edu entre convert waste plastic to diesel fuel

    The Education Advancement Centre, Ibadan, Oyo State, has developed a way of turning unwanted plastic waste into environmental-friendly Automative Gas Oil (AGO) otherwise called diesel fuel.

    Director of the centre, Pastor Muyiwa Bamgbose disclosed this during the sent forth of May/June 2014 graduating students, held at Awolowo Avenue, Bodija, Ibadan Oyo State capital.

    “Our centre is not all about teaching, its about building knowledge, we solve problems by thinking and we pass across knowledge to our students,” Bambgose said.

    Bamgbose explained that the idea was borne out of the high price of diesel currently in the market, stressing:”we look at the way we can generate our own diesel, because we spend about N500,000 a month to power the centre’s generator”

    On the process they used, he explained:”We take the plastic waste, wash and clean them and put them inside the polymeriser engine and it will go through several process to get diesel.”

    “He said the vision of the institute was to generate energy from waste products, adding that the centre is seizing the opportunity by pursuing economically viable solutions to meet the growing need for sustainable energy sources.

    “It’s not too difficult to get fuel out of the waste product but what we ensured was that the fuel we got doesn’t contain harmful materials to the engine. We arrived at technology which has several steps to follow sequentially to give fuel that is better than the normal diesel because undesirable elements are minimised and the energy content is maximised. It’s not just plastic that we are using, we are also using waste tyres,” Bamgbose added.

  • Uproar over  special levy in plastic industry

    Uproar over special levy in plastic industry

    Plastic manufacturers are literarily up in arms against the Federal Government’s imposition of a ‘special levy’ on two raw materials used for the production of plastics. This has pitched Indorama-Eleme Petrochemical Limited and plastic manufacturers against each other, writes Assistant Editor Chikodi Okereocha

    The plastic industry is embroiled in a serious crisis. In the centre of the crisis threatening to tear the industry apart is the imposition by the Federal Government of a ‘special levy’ on two raw materials (polypropylene and polyethylene) used in the production of plastics. Local plastic manufacturers are screaming blue murder, saying that the ‘special levy’ is capable of crippling the industry, and that it was foisted on them by the Federal Government allegedly at the prompting of Indorama-Eleme Petrochemical Limited (IEPL), in a bid to maintain a grip on the industry as the only producer of copolymer.

    IEPL is the Indonesian company that emerged core investor in the Federal Government-owned Eleme Petrochemical Limited, Port Harcourt, Rivers State. That was in 2006. The company’s name was subsequently changed to Indorama-Eleme Petrochemical Limited. The local operators said the Federal Government, as part of efforts to boost IEPL’s productivity and bring down the cost of polymer resins in the market, granted the company incentive by way of a 30-year lease to supply it gas at subsidised rate. Because of the provision of gas at a massively subsidised rate, IEPL’s cost of production is said to be one of the lowest in the world.

    Local plastic manufacturers, however, kick that despite the incentive granted IEPL by the government in the hope of reducing the price of plastic products, the price of polymer resins has been on an astronomical increase, a development that has left Nigerians with the short of the stick, as they still pay more for common plastic products. They noted that the cost of polymer resins in neighbouring countries most of which do not have a polymer manufacturing plant is cheaper than what is obtainable in Nigeria with a polymer plant. This, according to them, is because of the levy introduced on imports in 2013, via Circular BD. 12237/S.1008/T/11 and dated January 15, last year; and T/23 dated February 19, last year, which the local plastic manufacturers allege was meant to protect IEPL.

    Some of the local plastic manufacturers allege that the special levy opened a channel for IEPL to make more money, as they increased their price equivalent to the levy increase in March/April 2013.

    “By doing this, the cost to import raw materials in Ghana or Benin Republic became cheaper as the plastic industry in Nigeria pays a higher cost due to this levy,” one of the angry plastic manufacturers who do not want his name in print, lamented.

    The thinking in the industry is that the incentive allegedly granted Indorama has not been of advantage to the economy and the plastic industry in particular. To them, IEPL seems to be the only one benefitting from the levy while the common man is suffering with the burden of higher price.

    But IEPL, the company has denied the allegations, dismissing them as “entirely false”. For instance, the company argued that imposition of levy or revision of duty are state matters; only the Federal Government has the prerogative to decide on such matters. Besides, when taking any such step, an exhaustive study is carried out to ensure national interests are not compromised.

    Jossy Nkwocha, Head of Corporate Communication/Special Adviser to the Managing Director, IEPL, explained that in Nigeria, import duty is applied on products categorised in three main categories. He said category 1 is 5 per cent on basic raw materials not manufactured in the country, for example,  Naptha/NGL (raw material for IEPL plant), polyester (raw material for yarn/fabric), limestone (raw material for textile).

    Category 2 is 10 per cent on intermediate products, which are like yarn in textile or clinkers in cement. On the other hand, category 3, he said, is between 20 per cent to 35 per cent on finished goods, like textiles, cement and plastic items like chair, films and jerry cans.

    Nkwocha explained: “IEPL  produces polyethylene and polypropylene and such petrochemical products follow a chain of process/products before getting the final product i.e Polyethylene and Polypropylene. Therefore, Polyethylene and Polypropylene are finished goods (plastic granules), which are melted and given different shape by manufacturers of plastics or converters. This conversion is done using simple extruders, where plastic granules are put in a heater, heated and melted and then cooled in a mould to give it a desired shape. So, Polyethylene and Polypropylene (PE/PP) should be classified in category 3.

    Nkwocha also denied claims that Indorama received incentives from government to enhance its monopoly status. He wondered why the Federal Government would give the company incentives after it had divested from the plant in 2006 in an open bid system.

    “Why would Federal Government give incentives once the company was sold?,” he asked, pointing out that the company buys gas from AGIP on a price formula based on prevailing international prices.

    Nkwocha wondered what manner of incentive could have come the way of the company when its production cost has gone up manifold since 2006 when Indorama acquired the plant, which was at the time in a non-operational state.

    He also dismissed claims that Indorama does not have the capacity to produce sufficient Polymer resins to service the plastic industry as “a misleading propaganda”

    His words: “The term ‘polymer’  is often misused by the importers/traders to accuse us for being insufficient. This is again a misleading propaganda. Polymers include plastic resin products likePolypropylene (PP), Polyethylene (PE), Poly Vinyle Chloride (PVC),  Poly Styrene (PS), and Acrylonitrile Butadiene Styrene (ABS). PVC, PS and ABS continue to be imported at 5 per cent import duty without any levy. We produce PE and PP. We do not produce PVC,  and ABS. The truth is that we have excess capacity in PE, and are, therefore, exporting surplus quantities. In PP, we have sufficient capacity to cater for domestic demand. Besides, looking at the future growth rate of consumption of these products, we have started constructing new PE/PP plants in our existing facility.”

    Nkwocha told The Nation that after the expansion projects, the company’s capacity would doubled to about one million ton of PE/PP production in the country. He disclosed that the expansion work would cost an estimated $1 billion of fresh investments.

    “Our investments in the current plant have already crossed $600 million. He said IEPL is fast moving in its journey to realise its dream of building the largest petrochemical hub in Africa.

    “In the current phase of expansion, construction is going on for a new 1.4 million ton capacity Fertiliser Plant with the investment of $1.2 billion. Once operational in 2016, this plant would trigger agriculture revolution in the country, making Nigeria self-reliant in food production.

    He accused the local plastic manufacturers of being the ones cheating the Federal Government on revenues by evading the payment of the five per cent import levy and also undermining government’s efforts at removing the toga of an import-dependent economy. According to him, 17 local plastic converters imported Polypropylene under a different code, which is for Propylene, an action, he said, “amounts to deliberate fraud to evade duty and dump the surplus imported product in the country.”

    Indorama had accused 17 plastic manufacturing companies located across the length and breadth of the country of importing polypropylene resin under wrong Harmonized System (HS) Code to evade the payment of the five per cent import levy to the government. In a petition to the President, Manufacturers Association of Nigeria (MAN), dated October 3, 2013, the Managing Director of Indorama, Mr. Manish Mundra, said the act of the manufacturers poses a serious threat to the existence of his company. The companies include Prima Impex Nigeria Limited, Hart Industries, Dana Plast Ltd, Leoplast Industries, and Lotus Plastics Ltd, among others.

    In the petition, Munish stated: “All the mentioned parties have imported materials worth N3 billion and evaded five per cent levy worth N150 million, bringing huge losses to the national exchequer; Moreover, they have done this with proper knowledge and knowingly violated the laws of the nation for their own benefits. Such imports pose serious threat for the domestic producer like Indorama as our products become casualty at the expense of surplus foreign materials arriving the country.”

    Munish did not stop there. He sent a copy of the petition to the Chairman of the Economic and Financial Crimes Commission (EFCC) .

    Nkwocha explained that what the company did was to “bring the matter to the notice of appropriate authorities to take cognizance of the wrongful activities going on in the country. While clarifying that although Indorama has not accused anybody, he said: “It is for these agencies to investigate and find out the truth and take it forward logically as per law of the land. MAN has assured us that it would take it up with all concerned parties.

    But the counter accusation by Indorama has not gone down well with local plastic manufacturers. The Nation learnt that lawyer to the manufacturers, Mr. Kemi Pinheiro (SAN), petitioned President Goodluck Jonathan, Minister of Finance/Coordinating Minister of the Economy, Dr. Ngozi Okonjo- Iweala, and the Chairman, House of Representatives Committee on Appropriation, describing the accusations of Indorama as not only false but also malicious. They also accused Indorama of using its monopoly as the sole manufacturer of petrochemical products in Nigeria to accuse them wrongly even as it (Indorama) lacks the capacity to produce the quantity that could satisfy the needs of the industry.

    The manufacturers argued that what attracts five per cent import duty is polypropylene which is made up of 100 percent propylene with Chemical Abstract Service (CAS) number: 9003-07-0 and HS code 3902.1000.00. This is different from copolymer that contains less than 95 per cent propylene by weight and the rest weight is ethylene with CAS No: 9010-79-0 and HS code 3902.3000.00. Copolymer, according to the manufacturers, does not attract import duty from the Federal Government. They maintained that the effect of such import duty on copolymer will be adverse on the Nigerian public as manufacturers would have to push the cost to the consumers. “Plastic products in the neighbouring countries will become cheaper than what obtains in Nigeria; and this in turn will negate the transformation agenda of the government”, the manufacturers insisted.

    The Ministry of Finance is said to have wadded into the crisis by setting up a technical committee comprising officials of the ministry, Indorama, and officials of some of the manufacturing companies, such as Prima Impex, Dana Plast, Lotus Plastics, and Vik Industries. The committee is expected to verify the authenticity of the allegations contained in the Indorama petition. They committee met on January 23, but could not make progress.

    Pinheiro threatened that the manufacturers after exploiting all options may head for court, not only to clear their names from what he described as “unfounded accusations,” but also for the court to determine whether by virtue of the circular that emanated from the Federal Government agencies, there is import duty on copolymer HS 3902.3000.00.

    The end certainly has not been seen of this matter.