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26ЭКОЛОГИЯ ECOLOGY
EXAMINING THE IMPACT OF INFLATION ON NIGERIA'S UNHEALTHY
ENVIRONMENTAL PRACTICES
NWANKWO NNABUEZE KALU
PhD candidate, Institute of Environmental Engineering RUDN University, Moscow, Russia.
Abstract: This article examines the effect of inflation on Nigeria's unhealthy environmental practices. This study aims to understand the relationship between inflation and the deterioration of Nigeria's environment and to assess the consequences of this interplay. The methodology used in this research involves a comprehensive analysis of relevant literature, including studies on inflation, environmental challenges in Nigeria, and the nexus between economic factors and environmental degradation. Statistical data and case studies are utilized to show the various dimensions of this problem. The findings disclose a strong correlation between inflation and the proliferation of unhealthy environmental practices in Nigeria. Inflationary pressures contribute to unsustainable resource consumption, inadequate waste management systems, and increased industrial pollution and emissions. Moreover, the study highlights the vicious cycle created by inflation, poverty, and environmental degradation, exacerbating the challenges faced by the country. Based on these results, it is evident that addressing inflation is necessary for promoting sustainable environmental practices in Nigeria. The article concludes with policy recommendations emphasizing the necessity to balance economic stability with environmental sustainability, fostering a more resilient and eco-friendly future for the nation.
Keywords: Inflation, Nigeria, environmental practices, unsustainable, resource consumption, Pollution, policy recommendations
Introduction
The ecological reliability of a nation's ecosystem is intricately linked to the economic factors that model its development. In the context of Nigeria, a country struggling with both environmental challenges and inflationary pressures, it becomes an obligation to examine the interplay between these two elements. This article delves into the impact of inflation on Nigeria's unhealthy environmental practices, shedding light on the environmental ramifications of economic instability. Inflation, a persistent rise in the general price level of goods and services, has profound implications for sustainable resource management and ecological balance. As the inflationary spiral tightens its grip, the interest in short-term economic gains often takes precedence, leading to the negligence of long-term environmental concerns. This, in turn, manifests in a series of unsustainable practices, including excessive resource consumption, insufficient waste management systems, and increased pollution and emissions.
Nigeria, a nation with plentiful natural resources, finds itself at the crossroads of economic development and environmental sustainability. The rate of industrialization, with population growth and urbanization, has exerted tremendous pressure on the fragile ecosystems of the country. Inflation exacerbates these problems, creating a vicious cycle where poverty and environmental degradation intensify, further stretching the ecological fabric of the nation. To address these pressing issues, a comprehensive understanding of the links between inflation and unhealthy environmental practices is essential. By studying the underlying causes, consequences, and mechanisms at play, policymakers can develop effective strategies to mitigate the adverse impact of inflation on Nigeria's natural environment. This article aims to contribute to this endeavour by examining empirical evidence, analyzing statistical data, and providing policy recommendations that strike a balance between economic stability and ecological resilience. In the subsequent sections, we delve into the intricate relationship between inflation and Nigeria's environmental practices, analyzing the root causes, exploring the consequences, and highlighting potential solutions. By undertaking this examination,
Impact Factor: SJIF 2020 - 5.497 2021 - 5.81 ЭКОЛОГИЯ
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we aspire to foster a more sustainable trajectory for Nigeria, where economic wealth harmoniously coexists with the preservation and rejuvenation of its natural ecosystems.
Research result and discussion
Methodologies
To investigate the impact of inflation on Nigeria's unhealthy environmental practices, this study employed a mixed-methods approach. A comprehensive analysis of existing literature was conducted, drawing from academic journals, research reports, and government publications. Statistical data related to inflation rates, economic indicators, and environmental parameters were collected and analyzed. Additionally, qualitative methods such as case studies and expert interviews were utilized to gain insights into specific examples and perspectives.
1. Understanding Inflation and Unhealthy Environmental Practices in Nigeria
Inflation, as a macroeconomic phenomenon, occurs due to various factors such as excess money supply, demand-pull inflation, cost-push inflation, and inflation expectations. The outcome of inflation is a general increase in the prices of goods and services, leading to a decrease in purchasing power and eroding the value of money. This distortion in the economy has far-reaching effects on various sectors, including the natural environment. Nigeria faces a range of environmental problems, including deforestation, soil degradation, water pollution, air pollution, and inadequate waste management. These problems are influenced by factors such as rapid population growth, urbanization, industrialization, weak environmental governance and a high level of illiteracy. The fragile ecosystems of Nigeria are increasingly stretched, putting biodiversity, public health, and ecological balance at risk.
Several factors contribute to Nigeria's unhealthy environmental practices. Lack of awareness and education, weak regulatory frameworks, limited enforcement of environmental laws, unmaintainable resource extraction, and rapid urban expansion. The effects of these practices are severe, leading to loss of biodiversity, land degradation, air and water pollution, public health hazards, and negative impacts on local communities. Commodity Price Data in Nigeria for 5 decades
Commodity 1970 1980 1990 2000 2010 2020
Crude Oil (per barrel) $1.80 $37.42 $21.54 $28.66 $79.60 $43.15
Cocoa (per ton) $628 $1,305 $1,625 $1,316 $2,801 $2465
Palm Oil (per ton) $135 $327 $432 $502 $760 $737
Table 1.0 Source: Compiled by author
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Commodity price data in Nigeria for 5 decades Commodity price data in Nigeria for 5 decades
$4,000.00 S3.SOO.OO $3,000.00 $2,500.00 $2.000 00 $1,500 00 $1,000.00 $500.00
$0.00 $] mi DIP <i ill [X CiiKJUU (iW.CO .W15
1970 1980 1990 2000 2010 2020
Crude Oil (per barrel) Cocoa (per ton) Palm Oil (per ton)
Figure 1.0 Source: Compiled by author
2. Influence on Environmental Practices
The connection between inflation and environmental practices in Nigeria is complex and multifaceted. Inflationary pressures often drive economic managers to prioritize short-term gains, leading to unsustainable practices such as overconsumption of resources, deforestation for immediate economic gains, and disregard for long-term environmental costs and hidden costs. Understanding inflation expectations and their implications for decision making by economic agents is one of the cornerstones of research in macroeconomics and related fields. This is because inflation expectations play a crucial role for choice in virtually all modern macroeconomic and applied microeconomic models of intertemporal choices [3]. Inflation can destabilize investments in environmental conservation and infrastructure, diverting resources to immediate economic stabilization. This has a significant impact on resource consumption patterns in Nigeria. Rising prices and inflationary expectations incentivize individuals and businesses to consume and hoard resources, leading to overexploitation and depletion of ecosystem services. This unsustainable resource consumption impacts environmental degradation and undermines the country's capacity to achieve sustainable development goals. Inflation has a negative impact on waste management in Nigeria. As inflation depletes purchasing power, individuals and local governments struggle to afford proper waste management infrastructure and services. This results in inadequate waste collection and disposal leading to pollution of land, water bodies, and air.
3. Impact on Industrial Pollution and Emissions:
Inflation exerts pressure on the economy this has a significant impact on industrial pollution and emissions in Nigeria. Among the many forces underlying inflation, shocks in oil prices stand out as particularly important, as most of these shocks are manifested as increased costs to consumers. Oil price shocks can lead to price increases for commodities and services that rely on oil, such as refineries, chemical products, and transportation. Also, it may restrict the supply of certain products by increasing their production costs [1]. The rise in production costs and input prices resulting from inflationary pressures leads industries to trade off environmental compliance to maintain profitability. Large price rises can lead to what has been termed a 'heat or eat' trade-off, where some low-income individuals must choose between energy use and putting food on the table. Low-income individuals are particularly at risk [2]. Domestic petroleum companies in the quest to maintain a certain margin of profit will increase the prices of refined oil products whenever there is an increased price of petroleum products at the global level. Sometimes they even increase the price higher beyond the
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normal price level likely due to their monopoly power [4]. It hinders investments or import of pollution control technologies, emission reduction measures, and cleaner production processes. consequently, industrial activities may further increase pollution levels and higher greenhouse gas emissions, exacerbating environmental degradation.
Industries facing inflationary pressures may resort to cost-cutting measures that prioritize short-term economic gains over long-term environmental sustainability. This results in inadequate waste management practices, improper handling of hazardous materials, installation of inferior equipment and limited implementation of pollution control measures. As a result, pollutants are released into the air, water bodies, and soil, polluting the environment and posing risks to human health. consumption patterns are influenced by inflation favoring industries with higher environmental footprints. For instance, during periods of inflation in Nigeria, there is increased demand for energy-intensive industries or resource-intensive production processes. This can further amplify industrial pollution and emissions, undermining efforts to achieve sustainable development goals.
4. Inflation, Poverty, and Environmental Degradation:
Inflation and poverty are intertwined factors that contribute to a vicious cycle of environmental degradation in Nigeria. The detrimental consequences of inflation on the economy, coupled with high levels of poverty, create a challenging environment for sustainable environmental practices. When inflation depletes purchasing power, the cost of necessities rises, leaving less disposable income for individuals and households. This results in reduced spending on environmentally friendly products and services, limiting the demand for sustainable alternatives. Poverty exacerbates environmental degradation by limiting access to quality education, healthcare, and adequate resources. Impoverished communities especially in the rural areas often lack the means to adopt environmentally friendly practices or invest in sustainable technologies. This can lead to unmaintainable resource extraction, deforestation, and improper waste disposal, which is mostly the common practice, further deteriorating the environment.
Additionally, the negative environmental impacts of inflation and poverty disproportionately impact vulnerable populations. Low-income communities in oil-producing states are often exposed to higher levels of pollution, as industries tend to locate in economically disadvantaged areas. This environmental injustice increases socio-economic inequalities and perpetuates the cycle of poverty and environmental degradation. 3opulation and inflation rate in Nigeria for 5 decades
Years Population Inflation
1970 55,670,585 5.2
1980 78,012,684 10.9
1990 95,591,774 26.4
2000 123,337,822 6.6
2010 158,423,180 11.7
2020 206,139,589 13.2
Table 2.0
Source: Compiled by author
5. Addressing Inflation and Promoting Sustainable Environmental Practices: To break the cycle of inflation and environmental degradation, a comprehensive approach that addresses both economic stability and environmental sustainability is necessary. The following strategies can guide efforts to address inflation and promote sustainable environmental practices in Nigeria:
a. Improve Environmental Regulations and Enforcement: Improve regulatory frameworks to ensure strict compliance with environmental standards across industries. This involves establishing
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penalties for non-compliance, conducting regular inspections, and encouraging transparency and accountability.
b. Capitalize on Clean Technologies and Innovation: Distribute resources towards research and development of clean technologies, renewable energy, and eco-friendly industrial processes. Incentivize industries to accept sustainable practices through grants, tax incentives, and subsidies.
c. Encourage Circular Economy Principles: Encourage the adoption of circular economy models that give precedence to resource efficiency, waste reduction, and recycling. Execute measures such as extended producer responsibility and eco-design to reduce waste generation and promote sustainable consumption.
d. Increase Environmental Education and Awareness: Advance environmental literacy through educational programs at all levels. Encourage public awareness campaigns on sustainable practices, conservation, and the connection between inflation, poverty, and the environment.
e. Encourage Collaboration and Partnerships: Encourage collaboration among government agencies, private sector entities, non-governmental organizations, and local groups. Joint endeavours can generate innovative solutions, share best practices, and leverage resources for sustainable environmental initiatives
Policy Recommendations
1. Prioritize Sustainable construction of infrastructure: The Nigerian Government has to include environmental considerations in infrastructure planning and development. Emphasize the use of sustainable materials, energy-efficient devices, and green infrastructure solutions to minimize environmental impacts. Strengthen Environmental Impact Assessments and ensure that all primary development projects undergo comprehensive environmental impact assessments. This will help determine potential environmental risks and develop mitigation measures to minimize adverse effects.
2. Improve Waste Management Systems: They government have to install modern waste management infrastructure, including recycling facilities, composting plants, and waste-to-energy technologies. Encourage waste segregation at source and public participation in waste reduction and recycling programs. Encourage Green Entrepreneurship by Fostering an enabling environment for green entrepreneurship. granting financial support, entry to markets, and business development services. This will stimulate the growth of sustainable businesses and create employment opportunities for young Nigerians while furthering environmental stewardship.
3. Combine Environmental ideas into Economic Policies: policymakers also have to insure that economic policies align with environmental sustainability goals. Evaluate the environmental impacts of economic decisions, such as investment projects and fiscal policies, and incorporate environmental ideas into cost-benefit analyses. Strengthen International cooperation by collaborating with international organizations, neighbouring countries in the ECOWAS and development partners to share experiences, expertise, and best practices in sustainable environmental management. This can comprise capacity-building programs, knowledge exchange, and joint research initiatives.
One key recommendation is to strengthen environmental governance and regulatory frameworks. Towards the southeastern part of Nigeria especially cities like Aba and Onitsha, there is a very weak environmental governance. productive enforcement of existing environmental laws and regulations is essential to curb unsustainable practices and promote responsible resource management. Additionally, policymakers should consider the development of new policies that combine environmental ideas into economic decision-making processes, ensuring that environmental costs are properly accounted for. Raising awareness and promoting environmental education is another vital aspect. By fostering a sense of environmental responsibility and providing knowledge about sustainable practices, individuals and communities can actively participate in conserving natural resources and mitigating pollution. This can be achieved through educational campaigns, community engagement initiatives, and the inclusion of environmental education in formal education programs.
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Furthermore, investment in sustainable infrastructure and technologies is very important. Allocating resources towards renewable energy sources, efficient waste management systems and eco-friendly industrial processes can help reduce environmental impact and promote green growth. Public-private partnerships and international collaborations can play a pivotal role in attracting investments and enforcement of sustainable infrastructure projects. The adverse consequences of inflation on Nigeria's environment necessitate the formulation of targeted strategies and policies. By understanding the linkages between inflation and environmental degradation, policymakers can develop comprehensive approaches that address both economic stability and ecological sustainability.
Implementing comprehensive regional waste reduction and recycling programs can lessen the environmental impact of waste disposal. This includes developing efficient waste collection systems for each region, establishing recycling facilities, and incentivizing waste reduction and recycling practices among individuals, businesses, and industries per region.
Tackling inflation's impact on resource consumption demands a shift towards sustainable consumption and production patterns. This can be accomplished by utilizing initiatives such as promoting circular economy models, supporting sustainable agriculture practices, and encouraging responsible consumption habits. Sustainable resource management approaches can help preserve ecosystems, conserve biodiversity, and mitigate the negative impacts of inflation on natural resources.
Conclusion
The research on inflation's impact on Nigeria's environmental practices reveals a complex and intertwined relationship between economic stability and ecological sustainability. The unfavourable consequences of inflation on industrial pollution and emissions, coupled with the vicious cycle of poverty and environmental degradation, demand targeted policy interventions that strike a balance between economic growth and environmental protection. The findings highlight the detrimental impact of inflation on industrial pollution and emissions in Nigeria. Rising production costs and input prices resulting from inflationary pressures lead industries to focus on short-term economic gains over long-term environmental sustainability. unsatisfactory investments in pollution control technologies, emission reduction measures, and cleaner production processes can contribute to increased pollution levels and higher greenhouse gas emissions, exacerbating environmental degradation.
Additionally, inflation and poverty create a vicious cycle that perpetuates environmental degradation. Inflation's erosion of purchasing power limits individuals' ability to prioritize environmentally friendly products and services, while poverty restricts access to education, healthcare, and resources necessary for sustainable practices. The resulting unsustainable resource extraction, deforestation, and improper waste disposal further deteriorate the environment, particularly affecting vulnerable populations. Addressing inflation and promoting sustainable environmental practices requires a comprehensive approach that integrates economic stability and environmental sustainability. The policy recommendations presented provide a roadmap for achieving this delicate balance.
Strengthening environmental regulations and enforcement is vital. Robust regulatory frameworks and strict compliance mechanisms can ensure industries follow environmental standards and minimize their environmental footprint. Investing in clean technologies and innovation is equally important. By allocating resources to research and development, renewable energy, and eco-friendly industrial processes, Nigeria can advance a transition to a low-carbon economy and reduce environmental impacts. Promoting circular economy principles is another vital step. Emphasizing resource efficiency, waste reduction, and recycling will help reduce waste generation and encourage sustainable consumption. Environmental education and awareness campaigns play a fundamental role in fostering a culture of environmental responsibility and equipping individuals and communities with the knowledge and tools to make sustainable choices.
Collaboration and partnerships among government agencies, private sector entities, nongovernmental organizations, and local communities help drive sustainable environmental practices.
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By leveraging collective skills, resources, and experiences, these collaborations can produce innovative solutions and accelerate progress towards sustainable development goals. Additionally, integrating environmental ideas into economic policies is crucial. Evaluating the environmental impacts of economic decisions and combining sustainability into cost-benefit analyzes will ensure that economic growth is pursued in coordination with ecological sustainability.
REFERENCES
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2. Jane M. Fry, Lisa Farrell, Jeromey B. Temple (2023, May 23). Energy poverty and food insecurity: Is there an energy or food trade-off among low-income Australians? Retrieved from SCOPUS: https://www.sciencedirect.com/science/article/pii/S0140988323002293
3. Yaniv Konchitchki, Jin Xie. (2034, March 26). Undisclosed material inflation risk. Retrieved from SCOPUS: https://www.sciencedirect.com/science/article/pii/S0304393223000314
4. Shaobo LongJun Liang. (2018, January 1). Asymmetric and nonlinear pass-through of global crude oil price to China's PPI and CPI inflation. Retrieved from Researchgate: https://www.researchgate.net/publication/322994039_Asymmetric_and_nonlinear_pass-through_of_global_crude_oil_price_to_China%27s_PPI_and_CPI_inflation
